One of the characteristics of a strong brand is when a large and loyal group of users form a community of shared interest and ethos around the product. Some of the World's most iconic brands, like harley Davidson, Starbucks and Apple, have spawned (through design or otherwise) sizable global brand communities who interact on a regular basis through a variety of mediums including social media, events and user groups. How companies end up interacting with these people has major implications on their current business and future prospects.
Brand communities can be based around popular products (e.g. Apple, Harley Davidson), sports, entertainment or media figures (e.g. The Grateful Dead, Green Bay Packers) or consumer services (e.g. Starbucks, Facebook). According to Jump Associates, a consultancy, brand communities typically assume one of three forms: 1) a spider web-like structure where lots of members have a high level of association with each other based on strong shared interests, values and goals. Examples of this type of community includes: Cancer Survivors Network and Facebook; 2) a personality-based structure where a person is the single point of interest or activity. Fan clubs are a classic example of this type of community. However, one key challenge with this structure is that the shared interest is based on only one (very vulnerable) point of interest and; 3) a loose-pool of members who share interests and goals but have loose associations with each other. Examples of this type of community include Apple enthusiasts and political party members. Although often large, this type of structure does not maximize the sense of community because the affiliation between members is weak.
Brand communities can be a lucrative asset for firms if they are carefully cultivated and gingerly managed. Members are typically early adopters of the next upgrade or model, driving initial volume for a lower cost of acquisition and retention. In cases like Apple, a community is relied on to provide support (via crowdsourcing) as well as a willing pool of beta testers (for quality control) and hackers (to write apps). Longer term, a vigorous brand community can help sustain a strong brand image, resulting in the ability to command premium pricing and retain market differentiation. At the same time, social media-enabled brand communities carry inherent risks. A product or corporate problem can snowball quickly within a community, delivering a severe reputational blow.
Not surprisingly, not all brand communities flourish over the long run. Some, such as Saturn automobiles, wither, failing to achieve the aspiration of members and marketers alike. Community failure could arise from many factors including benign neglect, poor product performance, or over-zealous management and control.
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How can brand communities be cultivated to better serve member needs while promoting long term corporate goals? Susan Fournier and Lara Lee, authors of a HBR study "Getting Brand Communities Right" have some important insights on how to do this. They suggest:
Treat a community as a business, not a marketing strategy
Communities can impact the company in a variety of ways that go beyond marketing. For example, members are a rich source of market research and new employees. In some cases, they can perform critical functions like support and new product evangelism. Thus, firms should take a holistic business approach to dealing with communities as well as incorporating their needs and opportunities within the overall corporate strategy. In certain cases like Harley Davidson where there is significant business potential, firms should consider redesigning their business model to empower and enable their communities.
Prioritize the community's interest over the corporate interest
Members are more interested in satisfying their own needs (and sometimes the product is irrelevant to these) within the communities than the Company's. These needs could include: being in a safe haven, having shared interests or networking. Companies will be successful if they can identify these needs and provide the facilitation and infrastructure to satisfy them in a light-handed way with little hard sell.
Utilize social media as a networking tool, not as a community strategy
Social media is a great mechanism to foster multiple interactions among large numbers of dispersed people. As such, it is an ideal tool to facilitate community-building. However, social media is not the reason people form communities, which typically is a shared interest, ethos and passion with a brand. A firm's community strategy should focus exclusively on strengthening the value of the group to each member and intelligently extending its reach to suitable, new members.
Passion and group dynamics matter
Companies should carefully exploit inherent external conflicts or rallying points to increase the level of passion, dynamism and unity within the community. Examples of this include PlayStation gamers' rivalry versus XBox gamers, or Apple's challenge to Microsoft. To avoid domination of the community by a small group of people, firms should foster multi-member participation, growth and a sustained sense of mission. Companies could do this by facilitating easy sign-up and participation, enabling different people to fulfill different roles such as member gatekeeper and spokesperson.
Community structure matters
Companies should encourage the evolution towards the aforementioned spider web-type of community structure, considered the strongest and most stable type of community. Companies can provide assistance in areas like social media/Web 2.0 integration to help facilitate connectedness, undertake administration and promote new linkages.
Copyright 2010 Quanta Consulting Inc.
For additional strategic planning insights and a discussion of our relevant client experience, please contact us-
Mitchell Osak
Managing Director
Quanta Consulting Inc.
99 Bideford Ave
Toronto, ON
M3H 1K5
(416) 937 2106
mosak@quantaconsulting.com
www.quantaconsulting.com
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