New Research on Hard Benefits of Online Customer Communities
S + B reviewed a research paper published by The Ross School of Business in January 2012 which tracked the impact of company community membership on the amount of money members spent on the firm's products and conclude:
The research authors go on to say "We find that social dollars represent about 19% of revenue once customers join the online community. These social dollars arise primarily via more frequent orders with the firm, rather than increased shopping basket sizes."
This is just one type of online community and a one-dimensional perspective on its benefits but nevertheless it is very encouraging to see that there are real hard benefits to be found beyond all the hype.
Read the full Research Paper: Social Dollars: The Economic Impact of Customer Participation in a Firm-Sponsored Online Community
About Ken ThompsonKen Thompson delivers keynote conference speeches, workshop facilitation and in-house consultancy in four key business areas:
- Creating High Performing Teams in enterprises including Virtual and Mobile Teams (based on the Bioteams Book)
- Establishing effective Collaborative Business Networks enabling companies to co-operate effectively in areas such as sales and product development (based on the book - The Networked Enterprise)
- How to use the latest social media technologies including blogging and online communities to promote enterprises, brand, organisation or event
- Development of graphical on-line interactive Business Dashboards and What-if Simulators for organisations to support Performance Improvement, Strategy Development and Executive Team Development.
Bioteams Books Reviews
One of the main dilemmas for team leaders and members is the thorny issue of responsibility. We often fixate on the problem of leaders and members not taking enough responsibility but according to Dr Scott Peck they can also do damage if they try to take too much!