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Understanding the Value and ROI of Online Communities
Manage episode 341656907 series 3074731
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Creating a vibrant online community where customers can discuss your products is a great way to build a buzz about your brand, nurture loyalty, and even boost sales. But it’s hard to know if the time and effort are worth it without having an effective way to measure the value and ROI of online communities.
The problem is that measuring the ROI of online communities is not as straightforward as it seems. It’s not as simple as starting an online community and then measuring how your sales improve.
That’s because the value of an online community goes far beyond improving immediate sales and lasts indefinitely. In fact, direct sales usually play an insignificant part in the real value of online communities. There are many more effective ways to sell products!
When it comes down to it, online communities offer additional value that is hard to quantify. They can help increase awareness and interest in your brand and move prospects down the marketing funnel.
They provide even less tangible benefits, such as improving the experience for loyal customers by allowing them to share tips and ideas about your products. They can also do the following:
- Promote goodwill
- Attract a fan base for your brand
- Nurture long-term loyalty
That said, using the standard definition of ROI will significantly undervalue the contribution an online community can make to the success of your business. That’s because you calculate ROI by dividing an investment’s net profit by its initial cost. ROI, on its own, doesn’t take into account the longer-term costs and benefits of your investment.
Instead, you’ll need to embrace a broader definition of ROI if you want to know the real value of hosting a community. So, read on to learn what you need to know to understand the actual value and ROI of online communities.
Read this article: https://viralsolutions.net/roi-of-online-communities/
Get a FREE Marketing Audit: https://viralsolutions.net/services/free-50-point-marketing-audit/
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