Why Creating an Online Community is Key to Customer Retention

Check out the complete guide on community-led customer retention at Zapnito’s Community. It is free to register!

Winning new business. There’s no feeling like it. 

But just as—if not more—important is keeping that business. 

If you can’t retain customers, you’ll never grow. It’s like pouring sand into a bucket with holes. 

And eventually it can stall acquisition. Poor customer retention is a signal to potential customers you’re not worth the investment. 

So how do you increase customer engagement and retention?

Of course, you need a great product that meets their needs but you also need to give them a great experience with your brand.

Do they get the support they need? Do they know how to use the product? Are there ways for them to inform how the product develops? Are you able to learn from customers’ feedback and use?

To answer yes, you’ll need an online community.

Why online communities matter

Imagine walking into a room full of tables. At each table there are groups of people all talking about your brand, products, and services. 

They’re sharing how they use your product, the value they get from it, and improvements or features they wish it had.

You walk around listening to what they have to say, learning about their use-cases and needs, documenting it all. 

You then take those insights and tell your product team, your sales team, and your marketing team about them. You even share the amazing insights and praise with prospects.

Now, instead of a room, imagine that’s happening inside your brand’s very own online community.

What is an online community? 

An online community is a lively hub where existing customers interact with your brand and each other. They converse, collaborate, and champion your business. 

Businesses can use these communities to tap into real-time customer feedback, making product enhancements, service tweaks, or even launching entirely new offerings based on genuine user needs. Ultimately, they improve the customer experience.

It’s how to improve community engagement and loyalty. And it positively impacts the customer lifecycle from acquisition to advocacy.

One report from GWI states  that 76% of internet users are already part of online communities whether through social media groups or community management platforms. 

Clearly there’s an appetite to connect with others online. And where there’s appetite, there’s opportunity.

The role online communities play in customer retention

Let’s delve deeper into how online communities can build relationships with customers that boost customer retention and enhance customer service.

They build trust through consistent engagement

Trust isn’t built overnight. It’s the result of consistent and meaningful interactions. Online communities provide a space for these interactions to happen organically and regularly. 

When customers see that a brand is actively participating and valuing their feedback, it fosters a sense of loyalty that’s hard to break. 

Think about how good it feels when you seek support from a brand and they actually give it to you? It makes you want to stick around and purchase again. 

They provide a platform for peer-to-peer (and expert) support

The power of community shines brightest when customers turn to each other for guidance

By leaning on each other, customers often find solutions faster and in a more relatable manner. 

This communal support not only alleviates the pressure on customer service and customer success teams but also fosters a sense of empowerment among community members. It can even drive faster onboarding and product adoption creating a better user experience and getting your customers to value faster.

Communities are also a great place for product experts from the brand to step in to provide insights or clarify doubts, it adds an additional layer of trust and authenticity to the community.

They can be used to improve the product

Online communities serve as real-time focus groups where customers freely discuss the strengths and weaknesses of a product. These discussions are goldmines of insights for businesses.

By actively monitoring and participating in these conversations, brands can identify gaps in their offerings, understand evolving customer needs, and spot opportunities for product enhancements. This iterative feedback loop ensures that products evolve in tandem with customer expectations, leading to offerings that are not just market-fit but also customer-approved.

And when you’re continuously meeting customer needs, you breed brand loyalty and appreciation. Why would they risk going elsewhere when they have it so good here?

Examples of community activities that increase customer retention

How exactly can your online community lead to better product development, faster onboardings, better support, and genuine connection? It comes down to the activities you encourage and facilitate.

Here are some examples we’ve seen Zapnito clients use to engage their community and increase customer retention:

‘Ask me anything’ (AMA) discussions

Companies can give their users direct access to internal experts by hosting real-time customer only events. This gives them an exclusive space to ask questions that will help them use the product more effectively or that give them insights into the direction the product is going. When you support your users and give transparency, you’re actively building trust.

User-generated content (UGC) initiatives

Encourage users to share their stories, best-practices, and use-cases of the product. This gives you content that you can use in marketing but also helps other community members use the product and take inspiration. This improves the customer experience and when you recognize and reward those who contribute to UGC, you’re strengthening the relationship between them and your brand. 

Exclusive community webinars & workshops

Offer exclusive, valuable webinars and workshops that help your users solve the problems they face and connect to their interests as they relate to your product. They can be anything from product tutorials to industry insights. These events make your users feel part of the community and like they’re getting better value for money—which they are!

Collaborative product development initiatives

Invite community members to focus groups, beta testing, and discussions that inform the future of the product. When customers feel they play a role in shaping a product or service, their investment in its success escalates, increasing loyalty and reducing the chances of churn.

How you can build an engaging online community for better customer retention

The rewards of an online community aren’t automatic. You need to build it, generate consistent community engagement, and make it a place of value for both your customers and your business. (especially when it comes to customer engagement and retention).

Here’s a 3 step roadmap to guide you:

Step 1. Choose the right platform

The foundation of any online community is the platform you choose. 

Different types of communities cater to various needs and goals. The platform you use to host it matters. 

Whether it’s a forum, a social media group, or a dedicated community management platform like Zapnito, ensure it aligns with your brand’s ethos and the expectations of your target audience.

Step 2. Encourage user-generated content

User-generated content is the heartbeat of online communities. 

Encourage members to share their experiences, insights, and stories. This not only boosts engagement but also provides valuable feedback and testimonials that can aid in customer acquisition and general marketing strategies.

Step 3. Regularly engage as a brand

An online community thrives on consistent engagement. 

Host regular events, Q&A sessions, or webinars. Monitor discussions to address concerns promptly and celebrate successes. Remember, the more active and responsive the brand is, the more vibrant and engaged the community will be.

Check out the complete guide on community-led customer retention at Zapnito’s Community. It is free to register!

Reap the business rewards of online communities with Zapnito

Want to foster deeper connections and ensure sustainable community-led growth in your business? 

Zapnito offers a platform tailored to nurture and grow vibrant online communities so that your company has what they need to engage, retain and acquire customers.

Whether you’ve started to build a community already or you’re looking to elevate your existing one, Zapnito has the tools and expertise to guide you every step of the way.

→ Set up a call and see how Zapnito creates engaged online communities for businesses just like your. ←