Welcome to Future of Marketing!
Today, we’ll explore the incredible impact that community powered marketing can make across the consumer lifecycle – from building awareness to boosting engagement, driving conversions, and nurturing long-lasting loyalty.
We’ll also share a few examples to inspire your next campaign. 😉
Let’s dive in…
How Community Influences the Consumer Lifecycle
Understanding the marketing funnel is crucial because it helps guide marketing strategies, optimize customer interactions, and drive conversions by addressing your audience’s specific needs and behaviors at each stage of the buyer’s journey.
So… How does“community-building” enhance each stage of the consumer lifecycle?
1. Advocacy amplifies brand awareness
Advocacy is all about getting your customers to spread the word about your brand – which boosts trust, awareness, and acquisition. In fact, seventy-five percent (75%) of consumers read reviews before making a purchase.
How to boost advocacy: Focus on managing and growing your fan base, requesting their feedback, and repurposing their reviews and user-generated content (UGC). Reviews and good old word-of-mouth recommendations have a huge impact on how people perceive and trust your brand (76% of consumers have purchased a product because of someone else’s recommendation before!).
Hero Cosmetics does an amazing job at highlighting ratings & reviews from their community to boost advocacy and social proof.
2. Engagement deepens consideration
Engagement is all about making meaningful connections with your customers at scale. The goal is to activate and captivate their attention in ways that resonate and create excitement.
How to boost engagement: Strategies like targeted product samples, social contests, giveaways, discussion boards, behind-the-scenes, VIP brand experiences, early access to new products, and even adding a touch of gamification (i.e. polls and challenges) can go a long way in fostering engagement. By doing so, you not only deepen connections but also boost brand loyalty.
PS. Don’t underestimate the power of data! Enriching your data allows for more personalized interactions, which further enhances engagement. McKinsey research also shows that personalized experiences drive up both customer loyalty and a company’s gross sales (McKinsey).
#BrandCrush: Pizza Pizza recently launched the Hot Wing Battle between Spicy Miso Teriyaki and Gochujang Ranch. Great way to keep their audience engaged!
3. Conversions fuel purchases
By engaging your community, you empower customers to become advocates, participate, and help drive conversions (and thus, revenue). Social proof (like UGC) plays a significant role at this stage because it builds credibility – ultimately increasing conversions while lowering acquisition costs.
How to increase conversions: Incorporating tactics like shoppable content, reviews, user-generated content (UGC) galleries, and personalized offers can boost your bottom line.
Given that consumers ranked authentic user-generated content (UGC) as the most trustworthy form of content (and your community can be a big source of this content), you can transform it into a shoppable experience that becomes a potent catalyst for driving conversions and reducing drop-off rates throughout the entire marketing funnel.
4. Loyalty strengthens retention & repeat purchases
Building loyalty involves creating enduring connections with customers to foster an unwavering commitment to your brand. It goes beyond mere transactions and focuses on cultivating a genuine bond that drives true brand allegiance.
How to boost loyalty: Personalized engagement, points and rewards programs, and building direct relationships can play a significant role in fostering loyalty. Building your brand community can enable you to take back ownership over your relationships and customer data to deliver the personalized experiences that fuel brand love.
Fact: Increasing customer retention by just 5% boosts profits by 25-95% (Bain & Company)
5. Data improves optimization
Seventy-seven percent (77%) of consumers favor brands that ask for and accept customer feedback (Microsoft). By tapping into the knowledge and perspectives of your community, you gain valuable insights that can inform your strategies and decisions.
How to capture insights: Conducting audience profiling, social listening, surveys, and product feedback all offer powerful research and insights capabilities. They enable you to understand your audience better, track trends, and gather feedback to continuously enhance the customer experience.
Embracing data-driven decision-making also allows you to make informed choices and measure the return on investment (ROI) of your marketing efforts. Organizations that leverage customer insights outperform peers by 85% in sales growth and by more than 25% in gross margin (McKinsey).
Overall, brand communities are a powerful force across the marketing funnel.
By harnessing consumer voices, using personalized strategies, and leveraging valuable insights, brands can create meaningful connections, drive conversions, and foster long-lasting loyalty.
Questions About Building & Growing Your Community?
Our team can help you strategize unique marketing strategies to take your brand to the next level. Contact us to learn more.
As always, thanks for reading. Until next time.