The concept of communities is not new to business. Companies have been community-focused since long. However, the internet has greatly enhanced communication among the members.
Online communities, if managed effectively, allow businesses to grow. One-point concentration of customers is useful for companies to do target marketing. Secondly the companies can use the member profile information in their communication and product development strategies. Online communities are also referred to as the virtual market places of the future (Martin Lindstrom and Tim Frank Anderson). Today companies both medium and large-sized, are trying to do in their Customer Relationship Management in maintaining loyalty by fostering communities of customers.
Communities allow companies to get much closer to their most important customers through innovative programs that inspire participation such as member-generated content, events, member-to-member interaction and outreach efforts.
The question for marketers today is not whether to make online communities part of the marketing mix, its how to tap them and what kind to create. according to Robbie Kellman Baxter, president of strategy consulting firm Peninsula Strategies. This is so important, particularly for high-emotion products. This technique creates loyalty among those customers because the customers peer groups are so tightly linked to the companys products says Baxter.
Companies like Charles Schwab, Unilever, Reebok and Starwood Hotels are capitalizing on consumers passion for sharing ideas and being part of a virtual community with private online venues that protect confidentiality for both the company and the members. Toymaker RC2 Corp. used Communispace to test its prototypes in the hands of kids and their moms. The information collected about names, pricing and packaging helped the company make hundreds of decisions about its toys and retail programs.
The downside of private online communities is that they do not represent scientific statistical samples. These can be used only to gauge reactions, but not to base multimillion-dollar decisions . Moreover many sites were successful in attracting huge usage, revenue hasnt kept pace. Most online communities are not economically viable. Most never will be viable due to several tricky issues which conspire against online communities. though a number of niches within the online community space are faring very well.
We can concur with Brian Eckert who said that One of the most successful business models to emerge and capitalize upon the Internets capabilities is the creation and maintenance of Internet Communities. According to Baxter, Companies need to see the trend and evolve, before it passes them by.
Categories:
0 comments:
Post a Comment