Community Is The Path To Profit: The Community Flywheel

Are you building community into one of your most profitable growth channels?

If not, you're not alone.

90% of brands are still not capitalizing on the opportunity because they don't have the right strategy.

Here is a breakdown on why building community is the biggest marketing opportunity of the next decade.

And how you can create a community flywheel to increase your EBITDA (profit margin).?

The 5 Community Building Tactics:

1. Community focus: Target the whole, not just the one

Start with identifying what communities your customers are apart of and where they live on social. And then speak directly to them. Brands have to "earn" the right for consumers to join their community.

A Few Examples:

lululemon :

LL targets people who have an active lifestyle but if you go a layer deeper there are multiple communities that they participate in, ie: yoga, running, gym enthusiasts.

They've built a community for all of the above by meeting each of those "micro" communities where they are.

They have an ambassador program for yoga instructors and enthusiasts.

They create running guides.

They create free workout plans.

And they celebrate every "segment" of their community with spotlights, rich content, and in depth storytelling. They give their community a platform.

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2. Hero products: Be laser focused on the buzzworthy

Go an inch wide and a mile deep!

Brands should focus their engagement efforts on a few distinctive products that will create the most amount of buzz and loyalty.

Simplicity is a community's best friend.

The hero products often end up driving a significant portion of sales, in most cases generating 30% or more.

For example, Crocs, Inc. classic clog has been the company’s core focus for several decades.

The brand has managed to maintain its relevance through it's collabs with influencers like Justin Bieber.

3. A Talkable and credible brand story: be outspoken about your brand values

Brands will want to be outspoken about what they stand for and over communicate what their mission is.

Create brand stories that are targeted, reflect the language the community uses, and be simple yet compelling enough that customers want to share them.

Big tip: Use provocative language, tapping into deeply held ideals in specific communities.

The founder or other key leaders from your company should stand in the heart of the community and communicate directly with consumers.

This is an extreme example but Kyle Forgeard of Nelk and Happy Dad Hard Seltzer & Tea are a prime example of this.

They focus on hero products and limited drops.

They speak the language of their community.

They create endless content that speaks directly to their community.

They are active and participate in the activities their community loves: UFC, Gambling, nightlife, etc.

They host meet and greets.

They use provocative language.

And their community is LOYAL.

Again, this is an extreme example and I'm not saying you should mimic them, but from a tactic stand point they are following this community flywheel strategy to a T.

4. Community Management Strategy: Build an engaged and active community!

Build a community management team that will be "boots on the ground" and will build relationships with your customers.

Fuel the community with conversation and a continual stream of exciting and engaging content that consumers and influencers can latch on to and want to share.

Show gratitude to everyone that participates.

Celebrate and recognize people as often as possible

Give them support.

Make them feel heard.

Create opportunities for customers and influencers to partner with you on a deeper level.

5. Remove all friction: Create a funnel and experience that yields effortless transactions and participation in the community.

• 70% of consumers say that page load speed affects their willingness to buy a product online.
• 85% of sites fail the load standard of five seconds or less that Google says is required to avoid a high bounce rate.

When considering a platform to host your community, think of where your customers already spend time.

Think slack, discord, facebook groups, etc... Anywhere that your customers can easily access the community hub.

It's worth noting: Getting people to adopt a new platform/ habit creates friction... and friction hurts community.

Some Early Pioneers To Take Inspo From:

The community flywheel was pioneered by companies like Gymshark , DRUNK ELEPHANT , and Traeger, Inc.

For example, Traeger built an online community, or “Traegerhood,” of more than 1M+ people generating over 350k pieces of UGC content across social.... the power of the community flywheel!

Metrics for brands leveraging a community flywheel strategy:

- More than 75 percent of content about the brand is user generated

- The influencer engagement rate is greater than 2%

- More than 4% of online traffic is converted to sales.

- Brand-related posts by either the brand or a consumer go viral at least 2x a year

Conclusion:

In the digital era, social media has fundamentally shifted how brands think about how to build brand, marketing, and community.

In a world with unlimited options and ever improving convenience, building long-term loyalty is both the greatest challenge.

But also the biggest opportunity for everyone brand.

Building community is the only strategy that can't be replicated by your competition.

It's the only way to build a moat around your business.

Build a community flywheel.

Standout amongst your competition.

And build unbreakable relationships with your customers.

Not just because it will impact your bottom line...

But because your customers are seeking to belong.

Credit:

Meredith Singer - Director of Marketing Ops and Influencer-Affiliate Communities

麦肯锡 : A better way to build a brand: The community flywheel

The ZeroTo1 ?? Influencer team

Social Marketing Podcast: Community-Based Marketing: The Future of Business