In this edition, Harald Henn and Thomas Maiwald-Immer share their insights on customer communities as a crucial element for building better customer relationships. Learn all about this intriguing concept, its benefits, and its nature. Discover how businesses can tap into this dynamic exchange to enhance their offerings and build lasting connections.
About the authors:
Harald Henn is the managing partner of Marketing Resultant GmbH in Mainz, Germany, specializing in customer experience and digital customer service since 2004. With over 15 years of IT marketing and sales leadership, including at Dell Computer GmbH, he co-founded Germany’s leading call center consultancy, PRISMA Unternehmensberatung.
Thomas Maiwald-Immer is the Managing Director of QuestionPro GmbH, a leading software provider for customer experience, market research, and employee experience. His passion for customer experience began over a decade ago with the introduction of digital customer feedback in German retail.
Customer communities are a popular model that offers significant benefits to both customers and companies. There are many different reasons for customers to join a community. The desire to chat in a group of like-minded people, to get to know other people with the same interests or to solve problems in everyday life. The spectrum of communities ranges from investment to DIY. It is sometimes difficult for customers to find the right answers to a question about a new lawnmower, the configuration of a WLAN router when switching to a fiber optic connection, etc. Manuals are written in a secret language that nobody understands and the hotline is always busy.
In a community, customers exchange ideas with other customers; they often understand the problems better than a customer service employee, they speak the same language and there is a great willingness to help, support and exchange ideas with other people. And the feeling of togetherness in a community is motivation, incentive or even confirmation. There are also advantages for companies. They receive a wealth of valuable information about their products and services, find out first-hand where there are problems and issues and can strengthen and deepen customer relationships through their communication. They can help to address customer problems before they contact the company’s customer service department. A win-win situation that couldn’t be better imagined.
Customer communities have existed in various forms for a very long time. From fan clubs to online forums, the rise of social media has changed and accelerated the way customer communities work. Companies can participate in social networks, independent forums and self-created communities in order to interact with customers. Active company participation is generally viewed positively by customers. Customers appreciate the direct and constant communication with the company’s employees; especially when products are sold through retailers, a community provides a unique opportunity to communicate directly with the manufacturer.
A customer community is defined not just as a collection of fans or followers, but as a group of people who feel a sense of belonging and are motivated to contribute to the community. Communities support a deeply human need: the desire to belong to a group. These communities are thematic experience spaces offered by companies so that consumers can exchange ideas, help each other, make suggestions to the company and share experiences.
The first online communities appeared in the market research landscape as early as the end of the 2000s, but the great added value offered by these technology platforms was not recognized or even doubted for a long time. There were – and undoubtedly still are – “tried and tested methods” in market research and the factor of being able to look customers “directly in the eye” through observation mirrors in the test studio, for example, were initially the dominant arguments against the use of an online community.
From a corporate perspective, online communities are technologically advanced software platforms for market research, experience management, product development and, above all, for the management level that link the “why” and the “what”. Qualitative and / or quantitative methods are used to gain a comprehensive, continuous understanding of customers and employees in a real environment. Communities offer the opportunity to interact with competitive customers and to look beyond one’s own nose into the market.
In addition to the connection of external online access panels (an online access panel is a group of people who are willing to participate in online surveys, studies or other research activities in return for payment or any kind of reward), direct interaction and, if desired, interaction between employees and community participants is also possible. This creates an additional perspective. Customer communities form a unique framework which, through integration into existing operational processes, leads to direct cost savings in the short term – e.g. in customer service – and to higher sales, willingness to buy and recommendation rates in the long term.
Ultimately, the success of online communities cannot be stopped – certainly also reinforced by the changed way of working and communicating during the COVID-19 pandemic.
Today, the online community is a growing and valued method for gaining genuine “real-life” customer insights for market research, marketing and customer experience management. The use of communities is also becoming more and more interesting for the development and optimization of approach concepts and marketing automation campaigns based on algorithms, as the customer insights gained enable companies to gain a comprehensive understanding of their customers, non-customers and employees. Nevertheless, there is still a lot of room for improvement. Many people still associate the term online communities with high costs and the many resources required to maintain and operate the community. In addition to concerns about costs, the fear of negative customer opinions and a loss of control over communication plays a significant role in the rejection.
Features and functionality of communities
Phases of a strong community
The development of an active and vibrant customer community typically goes through three phases: Identification, participation and validation. In the identification phase, members are attracted to the community because they share common interests or needs. In the participation phase, they become actively involved through discussions, feedback and by sharing content. In the validation phase, it is checked whether the community goals have been achieved and the success factors are measured. The phase also includes the establishment and scaling of best practice methods.
Active communities have a large number of features and functionalities and are characterized above all by a strong bond between their members based on mutual trust, interaction and participation. They function through regular communication, collaboration and shared activities that contribute to the formation of a sense of community identity.
Key features
Vision and strategy
Defining the vision and goals of a customer community is crucial. A clear vision helps to understand the purpose, values, target audiences and expected outcomes. Critical success factors include leadership sponsorship, authenticity and alignment with corporate values
Community management strategy
Establishing communication strategies, moderation rules and user guidelines is fundamental. Legal knowledge, user engagement skills and high levels of automation for cost efficiency are critical success factors.
Content management
The planning of content production, enrichment and promotion ensures a rich and engaging user experience right from the start. Key success factors include proper topic analysis, planning methods and handling user- generated content. In a lively community, a great deal of content is contributed by the customers; nevertheless, a continuous flow of content from the company is required. Picking up on new topics and keeping the momentum going is the great art. Once a forum has been orphaned in terms of content, it is difficult to reactivate it.
Feedback and Iteration
Certainly one of the most powerful possibilities and yet the most underestimated: the ability to quickly and easily obtain feedback from a very specific customer segmentation or user group and adapt this into the product, processes and ask for feedback again. As a company, you receive feedback at a speed and quality that would otherwise not be possible. This feedback from the community can be used to improve products and marketing strategies and to incorporate the suggestions into product improvements, for example. Bosch provides a good example of this with its DIY community
Speed of adaptation
Regular exchanges with members enable them to react quickly to changes and make iterative improvements.
Purpose orientation
The market research and customer experience area is specifically designed to collect information about products, services or consumer behavior. Members actively participate in discussions, surveys and other activities to provide valuable feedback to companies. When companies use the feedback to give feedback back to customers (what has become of the suggestions and proposals?), a wonderful feedback loop is created.
The InnerLoop refers to the feedback process from the customer to the company, i.e. the customer gives feedback to the company and the company gets back to the customer and thanks them for their feedback and tries to solve the problem and feeds the feedback back to the relevant specialist department.
The OuterLoop refers to a systematic process for identifying and resolving recurring problems or structural weaknesses arising from customer feedback. The OuterLoop therefore refers to making long-term improvements to products, services or processes in order to solve systemic problems.
Interactivity
Members can interact with each other and with company employees. This interaction can take the form of forums, live chats, surveys, discussion groups and so on. This interactivity promotes an intensive exchange of information and opinions.
Reward systems
Many market research communities incentivize their members to be active and engaged. This can be through rewards such as points, vouchers, discounts or even cash payments. These incentives motivate members to participate regularly and provide high quality feedback.
Moderation and administration
The community is managed by moderators and administrators who ensure that discussions remain factual and respectful. They also monitor the activities of members and provide support in the event of questions or problems.
Data protection and security
As members often share sensitive information, privacy is an important aspect of market research communities. Security measures are put in place to protect members’ privacy and ensure that their data is secure.
Diversity of participants
Market research communities attract a diverse group of participants who have different demographics, interests and experiences. This diversity allows companies to gain different perspectives and better tailor their products and services to the needs of their customers.
The biggest difference and USP of self-created online communities compared to forums and social media communities is the variety of methods. On the one hand, only very specific target groups can be addressed. Members can expand their profile information and customers can collect further information about the community participants in order to use this for data- driven decisions, as well as targeting for specific projects to gain insights (the company wants to test a new concept and needs a very specific user group, such as a person who owns an electric car or has already tried out a specific product. It can also quantify hypotheses through quantitative surveys and can therefore make use of the Qual & Quant method mix. Online communities also have AI solutions that can summarize the analysis of all the comments.
Benefits of communities for companies
The benefits of online communities for companies cannot always be measured immediately in euros and cents. The effect may well be delayed to a certain extent. Suggestions for product improvements – a handy, round, lightweight cordless screwdriver designed especially for women – may not see the light of day until 2.3 years after the evaluation of the community contributions. But it can develop into a strong sales driver in the following years.
The fact is: customer communities pay off if you look at them in the long term. Direct and unfiltered access to customers is worth its weight in gold: an incredibly fast way of gaining insight into many questions relating to the product, the application, ideas for follow-up products and even competitor analysis. In addition to access for your customers, non-customers can also participate or be surveyed via an online panel to obtain a direct comparison group or to gain deeper insights into which markets can still be conquered and for which target groups certain features are still of interest. This allows sales in particular to gain insights into how you can address new customers and why they are currently still buying from the competition. Product development can test new products and immediately incorporate the feedback into further product development, thus drastically reducing product development time.
Communities also serve as an important source for identifying market and industry trends and as an effective voice-of-customer program.
- Simplify product selection and secure purchasing decisions for customers: Social media and online communities provide virtual spaces where people interact, share and create content related to their interests, passions and lifestyles. These platforms encourage new forms of consumption and facilitate the exchange of information through reviews, recommendations and feedback, helping consumers to find the right product.
- Strengthening social capital: By participating in social media and online communities, consumers can enrich their social, cultural, and personal capital. However, these platforms also present challenges such as information overload, social pressure, and privacy issues that need to be carefully managed.
- Community management and brand loyalty: Effective community management on social media can lead to users becoming loyal customers and brand ambassadors. This strengthens the relationship between a company and its target audience, increases brand awareness, and has a positive impact on conversions and sales.
- Education and learning: Customer communities offer educational resources that help members to deepen their knowledge and develop their skills. These platforms not only provide information but also enable the sharing of best practices and experiences, leading to improved product knowledge and usage
- News and updates: Regular updates and news keep community members informed of the latest developments in the company or industry. This promotes community member engagement and retention
- Services and support: Providing services such as support or advice by the community can increase customer satisfaction and, at the same time, reduce support costs for the company. Community members often help each other, which reduces the burden on customer service centers
- Research and credibility: Sharing research results and insight within the community builds credibility and strengthens the company’s expert position in its industry.
- Promoting innovation: Customer communities provide a platform for user-driven innovation. Through direct feedback, the company gains valuable insights into the needs and preferences of customers, and by participating in product tests, development times can be shortened and market launches accelerated.
- Improved customer service: Peer-to-peer support within the community is often more effective than customer service provided by the company’s own employees. employees. Customers can empathize with problems much better and speak the language that other customers understand. Cost savings in customer service are an accompanying result. The opportunity to learn from the dialog between customers is much more valuable.
The return on investment (ROI) of online communities can be manifold. In addition to increasing efficiency in product development and improving customer satisfaction, communities help to identify market trends, attract brand ambassadors and increase sales through upselling. However, the ROI should not only take monetary aspects into account, but also the long-term value of customer loyalty and brand image. - Mix of quantitative and qualitative methods: Online communities offer the opportunity to use both quantitative and qualitative methods, which is why we also speak of NO LIMITS with online communities. Companies can conduct surveys and interviews to collect quantitative data and perform statistical analyses. At the same time, they can use qualitative tasks such as discussion forums, focus groups, or product tests to gain deeper insights into the opinions and needs of community members.
- Communities for customer loyalty: Online communities offer a platform to strengthen customer loyalty. By regularly interacting with customers, companies can build a more personal relationship, better understand individual needs and develop customized offers. Community members can also exchange knowledge and make recommendations, which further strengthens brand loyalty.
Practical examples and how communities work
There are examples of successful customer communities from various sectors, both in the B2C and B2B markets. Each community has its own story and its own focus.
The Bosch DIY community focuses on DIY-related topics and offers a variety of forums. Bosch products and innovations are very cleverly integrated, i.e. direct manufacturer information. What stands out are the lively activities and contributions where comments and contributions on competitor products are also permitted. For product managers, this is a real treasure trove of product ideas and improvements.
In the B2C area, there is a VORWERK community on the subject of food, cooking and recipes; more specifically on the Thermomix product. https://www.rezeptwelt.de/ offers recipes from customers for the Thermomix, forums for vegan recipes, allergies and intolerances, reviews and also integrates new products and announcements from Vorwerk. If the Vorwerk product managers run out of recipe ideas for the Thermomix, they will find them here.
Lego, on the other hand, uses the creativity and playfulness of its customers in its community for innovation and co-creation. Customers can independently design and build new products from LEGO bricks and present their design to the community. If they reach a minimum number of 10,000 supporters within a certain period of time, the project is reviewed by Lego and can be launched on the market. This includes a revenue share for the person submitting the idea. Similar to Vorwerk, Bosch, LEGO Ideas is also a very lively and active community.
Requirements for the development and operation of communities
Building and operating a successful community requires a clear strategy, dedicated resources, and an understanding of the needs and expectations of the members. In addition to technological investments, the costs also include human resources for community management, moderation and content creation. Transparent communication, an open feedback culture and continuous maintenance of the community are crucial for its long-term success:
- Fast response and customer feedback: The acceleration of communication processes through social media & online community platforms requires companies to respond quickly to customer feedback. Responding quickly is critical to improving the customer experience and positively impacting the brand image.
- Dealing with negative feedback: Dealing professionally with negative feedback on social media is a challenge that companies must not ignore. It is important that they take all feedback seriously and respond to it constructively in order to maintain customer trust and strengthen the customer relationship.
Best practices for the management of customer communities
Define clear objectives: A crucial step in managing customer communities is defining clear objectives. Whether it’s to raise brand awareness, increase customer loyalty, or collect product-related feedback, each objective must be precisely formulated to maximize the chances of success
Choose the right platform: Choosing the right platform is essential to reach your target audience and fulfill your goals effectively. Consider both the demographics of your target audience and the specific features that different platforms offer
Define your target audience: Specifically defining your target audience helps better align community activities with user needs and expectations. This promotes a higher engagement rate and stronger retention of community members
Establish measurement criteria: In order to effectively measure the success of your community, relevant metrics need to be established. These can include visitor numbers, engagement rates, or the quality of user feedback
Formulate guidelines: Establishing clear guidelines is essential for managing a community. These should regulate behavior within the community as well as clearly define the expectations of members’ contributions
Regular contributions: A vibrant community needs regular content that is both informative and entertaining. Plan your content strategically and post regularly to keep your members interested
Promoting engagement: Active engagement is at the heart of any community. Encourage your members to participate through interactive content, discussions, and direct responses to their contributions. We also believe it is essential to share with community members the insights gained from their activities. This promotes both engagement and appreciation.
Consistent brand voice: A consistent brand voice helps to strengthen trust and reliability within the community. Make sure that all communications stay true to your brand.
Show appreciation: Recognition and appreciation are important factors in keeping your community members motivated and engaged. Show appreciation through rewards, shout-outs or a simple thank you
Support networking: Encourage networking within your community. This can be done through the creation of networking events or through features on the platform that facilitate sharing and collaboration between members
By implementing these best practices, you can build a dynamic and engaged customer community that offers significant benefits not only to your customers but also to your business
Gaining insights made easy.
QuestionPro makes it possible to quickly and easily generate and analyze customer insights and make them available to the company as a knowledge database. Be it via transactional surveys at the moment of truth at the various touchpoints, ad-hoc market research studies, or the development of online communities. The collected data can not only be analyzed in dashboards and shared within the organization, but the collected knowledge can also be categorized and stored in knowledge databases. With the customer journey mapping tool, the insights gained can be assigned to the respective touchpoints, documented, and continuously tracked. This enables companies to develop a deep understanding of customer interactions and make targeted improvements.
Find out more at www.questionpro.com
