| As we are living in a fast-paced digital and connected world, it has impacted customers’ needs, exchanges, and expectations with brands. Today, customers are seeking comprehensive interaction with the company and its existing customers. Creating private online communities can give businesses a competitive edge.
Social network development allows companies to provide a platform to customers to connect, interact, engage, and extend relationships to improve products and provide value to customers. Many leading enterprises are already reaping the benefits of online communities. Top companies such as Amazon, Microsoft, and Apple have invested in online community engagement over their various product lines. Besides tech giants, about 80% of startups claimed that building an online social community is vital for business growth and success.
1. Better Consumer Lifetime Value
In today’s competitive marketplace, grabbing the attention of your audience is one of the greatest business challenges. So, it is important to nurture every customer relationship to improve customer retention and lifetime value. Increased customer loyalty ultimately leads to higher purchase rates, customer retention rates, and customer lifetime value.
Moreover, lockdowns and restrictions imposed during the COVID-19 pandemic have also accentuated the need for closeness, meaning, and connectedness, compelling people to join online communities and actively participate in them. Brands can engage with the members of their private communities which in turn helps your members to create a legitimate and authentic sense of shared ownership in your company’s vision.
2. Minimal Customer Service Expenditure
Private online communities allow members to ask queries or give answers, share opinions and ideas, as well as best practices. As customers are able to find answers to most of their queries and concerns, it reduces the pressure on the customer support team. About 49% of businesses having private online communities have reported saving 10% to 25% of service costs every year.
Moreover, with the increasing customer base, your community will also grow so you’ll have more people advocating your brand and providing support to fellow customers free of cost.
3. Reduced New Customer Acquisition Expenses
Your brand advocates can uplift your company’s brand through word of mouth, by referring new customers, and giving positive reviews and ratings to your brand. 90% of potential customers trust brand recommendations from friends and family and 70% believe in customer feedback which is much higher than the customers’ trust rate for promotional ads.
Therefore, it is vital for companies to involve brand advocates and guide their passion to receive high-quality leads or referrals and increase sales cost-effectively. By investing in social network development and interacting with your customers on a personal level, you can cultivate more brand advocates at a lower cost.
Private online communities provide an ideal pre-sales environment. Potential customers can gain an idea of the brand by interacting with existing customers, ask queries, and obtain a genuine and honest review from a customer who has used the service or product of the brand.
Many companies leverage their social communities early in the customer journey to make the potential customer onboard quickly.
4. Serve Your Customers in a Better Way
With a private online community, businesses can understand their customers and their requirements better and improve their products and services to meet their expectations. They can even use it to refine their marketing and sales strategies and increase conversions. They can also offer useful resources to help consumers gain considerable value from their business products and services.
As the feedback and opinions within social communities are honest and genuine, businesses can use them to improve their existing products and services.
Ending Note
The benefits of a social community may vary depending on the community type or niche. So, whether you build an online community for better customer service and support, product development, or brand promotion and sales, if run properly, it can add value to your business.
If you want to leverage the benefits of private online communities, you should consider reaching out to a professional social network development company today! visit here.
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