How important is a digital community for growing your business?

How much time do you spend on building your digital community? It’s a small investment with incredible potential. In fact, a digital community sees more than 400% ROI due to low costs and high return, and that only goes up as the community matures. 

Let’s take a look at what exactly a digital community can do for you.

Build Engagement and Loyalty

Customer acquisition is one of the highest costs in any field. It can be five times cheaper to keep a customer happy than try to attract a new one. That makes customer satisfaction a major priority.

Your digital community is a huge asset here. It shows customers how your values match theirs and creates a connection outside the product itself. That connection is invaluable to building a good reputation, which is more important now than ever. Customers are willing to spend more with companies whose values align with theirs. If you can demonstrate that connection, they’ll feel good about buying from you and recommending you to friends.

Regular activity in a digital community has another benefit: it builds a habit of interacting with your brand. When customers connect with your content weekly or daily, your company becomes part of their routine. It’s much easier to retain those loyal customers. Plus, you’re more likely to get referrals from people who habitually share your digital content.

Gather Timely and Relevant Feedback

When you have an active digital community, you can see customer reactions to new offerings in real time. You’ll know if there’s a major problem you missed during development or if something is taking off more than expected. This lets you pivot in response to strong reactions and nip problems in the bud.

Feedback from your digital community can be used to guide the development of new features, products lines, and services. Having the ability to gauge interest among your most valuable customers before making a large investment is a huge advantage. 

If you’ve really put some effort into your community, you’ll be able to directly crowdsource ideas about what customers want. Customers who are excited and engaged will organically share their wish lists and criticisms through comments, posts, and Q&A sessions. It’s a cost-effective way to passively gather valuable development ideas.

Taking user feedback also makes customers feel heard and valued. It empowers customers with the idea that they helped create or shape your company and gives them a feeling of personal investment, which feeds into our next point. 

Generate High Value Leads

A digital community is the single most valuable resource for generating leads. Companies experience a 33% improvement on marketing efforts when an active digital community is leveraged. 

Your digital community is a base of loyal customers who naturally become brand ambassadors as they become engaged with your company’s content. They’ll share and endorse a product they feel excited about, especially if they were part of its development through online polls or feedback sessions.

Consider this, too: the value you deliver through free online content (like daily posts, contests and challenges, tutorials, and giveaways) nurtures future leads. It gives new customers the confidence to buy. When they already have some experience with your company, they trust they’ll get good value from a purchase.

Establish Your Reputation as a Knowledge Leader

Use informative posts such as tutorials or Q&A sessions to show your audience you know what you’re talking about. These posts can be shared or linked to in discussions about related topics, even far from your platform. 

When people see your content linked as an explanation of something, it puts you in the position of industry expert. You stand out from competitors as a more elite or valuable company, even if your products are similar to those competitors. 

Funnel Customers Where You Want Them

All of this contributes to a more efficient, effective funnel, guiding customers where you’d most like them (whether that’s your personal content platform or your company website).

When free content is valuable, customers assume there’s even more interesting content available for paying customers. They’re curious about what else they can get in the premium areas of your platform, or through making a purchase.

If you take one thing away from this article it should be this: your digital community builds the relationship that inspires brand loyalty, conversion, lead generation, and higher-value purchases. Don’t neglect this inexpensive yet valuable resource. The more you put into it, the more you get in return.

How can you engage your digital community? FanHero has a suite of platform tools to help you stir up excitement and connect with your audience. Ask us how today! 

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