keys to community readiness and growth: how brands prepare for online community

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KEYS TO COMMUNITY READINESS AND GROWTH Research and Analysis by Leader Networks Written and Distributed by CMX Sponsored by: Study sponsored by Salesforce, Jive and Vanilla.

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Page 1: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

KEYS TO COMMUNITY READINESS AND GROWTHResearch and Analysis by Leader Networks

Written and Distributed by CMX

Sponsored by:

Study sponsored by Salesforce, Jive and Vanilla.

Page 2: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

STUDY SCOPE

Focus of the study:

This research study seeks to develop an Online Community Readiness Index for any organization that has or plans to develop an online community. Using a mixed methods study approach, the study examines the organizational people, process and technology scenarios that fuel their existing or future community initiatives.

The study outcomes are a data-driven portrait of the characteristics that can be used to predict the potential business impact of an online community upon an organization.

Sample composition:

• The survey was administered online to 414 participants who completed it between 10/15/15 and 11/20/15.

• Seventy-six percent of participants were located in the United States.

• Survey participation was primarily driven by marketing and community management professionals. Survey takers were gathered via social channels, email, and peer referral.

Sections:

Separate results are presented for those Having a Community (285), and those who Do Not Have a Community [but may be considering one] (129).

2

Page 3: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

SEGMENTATIONS

All Customer results were analyzed by the following segments. Significant differences are noted on the relevant slide*

• Community Size – Under 1,000 members (n=73) vs. 1,000 to Under 10,000 members (n=89) vs. 10,000 members or more (n=118)

• Age of Community – Less than a year (n=69) vs. 1-2 years (n=62) vs. 3-5 years (n=71) vs. More than 5 years (n=73)

• Focus of Organization – B2B and B2C (n=107) vs. B2B (n=131) vs. B2C (n=69) vs. Other (n=35)

• Size of Organization – 1-50 members (n=113) vs. 51-500 members (n=94) vs. 501-5,000 members (n=62) vs. More than 5,000 members (n=50)

• Success of Community – Very Successful (n=69) vs. Other responses (n=194)

*Note: Overall sample sizes differ based upon which respondents were presented with each of the segmentation items

3

Page 4: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

KEY FINDINGS

86% of organizations believe that having a branded online community will positively impact core operations, (85%) improve the customer journey and (85%) increase trust.

The reasons brands launch online communities are shifting to become more strategically focused on supporting the customer journey.

• The focus on communities as a cost reduction strategy (#3 top reason why those who have an online community launched one) is significantly less important among those that are considering launching one. Their 3rd most frequent reason is to support brand champions. Cost reduction fell to 10% from 31%. Communities are becoming a strategic initiative rather than an operational effort like in the past.

Brands who have online communities are driven to build them to help ensure competitive advantage by focusing on customer satisfaction and retention (61%) and gathering ideas to fuel future innovation (48%).

• B2B firms more likely to launch community to reduce support costs.

• Primary motivations for launching a community included customer satisfaction/retention (61%) and gathering ideas to fuel future products and services (48%).

• After communities launched, the majority of respondents (53%) reported user-generated content as highly valued by their organization.

4

Page 5: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

KEY FINDINGS CONTINUED

Executive sponsorship and identifying key business drivers are critical success factors in launching a successful online community.

• When launching a branded online community, 56% found it important to determine a business need, 45% relied on executive support and 39% built a business case.

Maintaining community engagement and growth is an ongoing challenge for most, yet it is often a leading indicator of success for very successful communities.

• More than half of respondents are concerned that the community will fail to be vibrant. And the fears are warranted as lack of support and low engagement are the primary reasons why communities fail long-term.

While having a strong community strategy and business case is at the forefront of success, the software platform can also strongly influence the long-term community success.

• Respondents who consider their communities very successful and those from larger organizations are more likely to report that their organization expended “high” effort in selecting a software program.

• Surprisingly, only 1 in 4 organizations are rigorous in their approach to the vendor selection process.

Organizations considering launching an online community often underestimate staffing requirements.

• The majority (91%) of brands that have a community report at least one dedicated community manager, and dedicate more staff to larger communities. However, only 2 out of 3 brands considering a community plan to have a dedicated resource.

5

Page 6: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

6

KEY FINDINGS CONTINUED

There are some significant differences between B2B online communities and consumer focused ones. B2B communities are:

• Believe that community will improve the customer journey, reduce costs, generate indirect revenue, and streamline the supply chain.

• More likely to define community as “members who develop relationships with each other on a platform.”

• Their top triggers for new member acquisition are: onboarding all customers or employees and refer-a-peer programs.

• Expend a lot of effort in selecting community software

• Most likely to have a full-time manager and more likely to have multiple managers.

• More likely to report that "Gathering and organizing product feedback” is a top challenge.

• Highly value new product ideas or feedback.

Community Readiness and Success Markers for very successful communities:

• More likely to seek and find an executive sponsor prior to launch

• More likely to be motivated by cost reduction as a business driver

• More likely to see strong off-line events as an indicator for community readiness

• Among those considering launching a community, they are more likely to indicate that “solving problems by accessing experts and FAQs” and “self-serve through videos and how-to tutorials” would be main member activities.

Page 7: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

Community Definition

Page 8: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

DEFINING COMMUNITY: THE KEY CHARACTERISTICS

8

4%

23%

49%

51%

54%

66%

67%

67%

68%

Other

Have an executive sponsor

Have a central gathering place

Is a line of business or a strategic initiative for the organization

Have measurable goals and objectives

Have a dedicated community manager

Common set of people with mutual interest who convene online

Have members who interact on a branded platform with the brand

Have members who develop relationships with each other on a dedicated platform

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Those with a B2B focus and those in larger organizations are more likely to indicate that an “online branded community has an executive sponsor.”

Those who consider their community very successful are more likely to indicate that an online branded community is defined by having “members who develop relationships with each other on a platform.”

The relationships members form among peers and brands on a dedicated platform are the primary differentiations for an online community.

HOW DO YOU DEFINE AN ONLINE BRANDED COMMUNITY IN YOUR ORGANIZATION? [SELECT ALL THAT APPLY]

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 9: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

7 IN 10 RESPONDENTS HAVE AN ONLINE BRANDED COMMUNITY

9

DOES YOUR ORGANIZATION HAVE AN ONLINE BRANDED COMMUNITY?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 10: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

Have Online Branded Community

Page 11: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ORGANIZATIONS LAUNCH ONLINE COMMUNITY TO IMPACT CUSTOMER SATISFACTION AND RETENTION

11

25%5%5%7%8%8%

13%14%

19%27%

31%48%

61%

Other

Customer dissatisfaction

Because our competitors have one

To influence NPS scores

Executive mandate

Market forces to compete

Replace or supplement in-person events

Customer requests

Generate revenue

To support brand champions

Reduce support costs

To gather ideas to fuel future products and services

Customer satisfaction / retention

0% 20% 40% 60% 80% 100%

Organizations with a B2B focus and those with more than 50 employees are more likely to identify “reducing support costs” as a primary driver of their online community.

The most common other responses were: creating space for collaboration, UGC and the organization identifying as a community itself.

WHAT WERE THE PRIMARY DRIVERS BEHIND YOUR ORGANIZATION’S LAUNCH OF AN ONLINE COMMUNITY? [SELECT UP TO THREE]

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 12: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

CUSTOMER SATISFACTION AND FUELING FUTURE INNOVATION ARE THE MOST IMPORTANT DRIVERS OF COMMUNITY

12

2%

1%

3%

4%

3%

4%

5%

6%

4%

10%

7%

18%

9%

4%

2%

1%

2%

4%

3%

4%

5%

5%

10%

9%

17%

23%

18%

1%

1%

1%

1%

1%

3%

3%

9%

6%

14%

12%

25%

Other

Deflect customer dissatisfaction

Because our competitors have one

Influence NPS scores

Executive mandate

Market forces to compete

Replace or supplement in-person events

Customer requests

Generate revenue

Support brand champions

Reduce support costs

Gather ideas to fuel future products & services

Customer satisfaction / retention

0% 10% 20% 30% 40% 50% 60%

3rd 2nd 1st

PLEASE RANK YOUR DRIVERS FOR AN ONLINE COMMUNITY FROM MOST TO LEAST IMPORTANT.

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 13: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

BEST TWO WAYS TO GAIN FUNDING: COMMUNITY SOLVES A BUSINESS NEED & EXECUTIVE BUY-IN

13

8%

13%

14%

17%

29%

39%

45%

56%

Other

Conducted customer journey mapping

Built a financial model for community returns

Purchased a platform for an online community

Cited customer requests/used customer data

Developed a business case

Found strong executive support

Identified business needs community could help with

0% 20% 40% 60% 80% 100%

• More than half of respondents reported that they gained funding by identifying business needs that the community could help with

• Slightly less than half reported that they relied on strong executive support

WHAT HAS BEEN YOUR MOST SUCCESSFUL APPROACH TO GAIN FUNDING FOR THE BRANDED ONLINE COMMUNITY? [SELECT UP TO 3]

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 14: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

FREQUENT IDEA SHARING & CUSTOMER PRODUCT FEEDBACK = SIGNS OF COMMUNITY READINESS

14

10%

15%

31%

31%

34%

38%

46%

53%

54%

Other

We didn’t look for signs to validate

They asked for online community

They build things independently & wanted to build together

We have successful offline events

We help solve complex issues, so there is a lot to discuss

They trust and want to engage our expertise

They frequently reached out for answers to their questions

They frequently give us product feedback or ideas

0% 20% 40% 60% 80% 100%

• Respondents with larger communities were more likely to indicate that users “reached out to get answers to their questions.”• Organizations with a B2C focus were less likely to “report successful offline events.”

• The majority of organizations surveyed who have an online community sought to validate the need for community with their customers

WHAT WERE SOME SIGNS THAT YOUR CUSTOMERS WANTED A BRANDED ONLINECOMMUNITY? (SELECT ALL THAT APPLY)

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 15: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

LENGTH OF COMMUNITY EXISTENCE

15

13%12%

22%

25%26%

2%

Less than 6 months 6-11 months 1-2 years 3-5 years More than 5 years Not Sure/Do Not Know

0%

5%

10%

15%

20%

25%

30%

• 26% indicate that their community has existed for over 5 years, which represents a surprising maturity given the relative newness of community to businesses.

HOW LONG HAS YOUR BRANDED ONLINE COMMUNITY EXISTED?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 16: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

SIZE AND GROWTH OF COMMUNITY

Question: How many total members are in your community?

16

Under 100 8%

100-49911%

500-9997%

1,000-4,99921%

5,000-9,99910%

10,000-50,000

12%

Greater than 50,000

31%

• Over 3 in 10 respondents report communities larger than 50,000 members• Close to a quarter indicate that their community has at least doubled in the past year• Younger Communities were smaller and reported more rapid growth.

It has declined

5%Has not

changed8%

Grown 1% to 9%18%

Grown 10% to 25%

23%

Grown 26% to 50%

14%

Grown 51% to 75%

6%

Grown 76% to 99%

3%

Grown 100% (doubled) or

more23%

TOTAL MEMBERS GROWTH IN PAST YEAR

Question: What has the growth in your community been over the past year?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 17: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

MANY METHODS ARE USED TO TRY TO GROW COMMUNITY, BUT THERE IS NO MAGIC BULLET

17

23%

2%

18%

19%

20%

29%

32%

37%

37%

58%

Other

Purchase lists

Share an online tour of the community

Refer-a-peer programs

Offer incentives and giveaways

Onboard all customers or employees to the community

Develop personalized outreach to prospective members

Email invitations from our organizations list

Run events

Use social media marketing to raise awareness

0% 20% 40% 60% 80% 100%

• Communities most commonly try to attract new members through social media marketing and events.• Respondents with smaller communities and younger communities were more likely to use email invitations.• Organizations with B2C Focus were more likely to offer incentives and giveaways.

Multiple other responses cited “word of mouth” and “product support.”

HOW DO YOU ATTRACT NEW MEMBERS TO JOIN THE COMMUNITY? (SELECT ALL THAT APPLY)

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 18: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

SOCIAL MEDIA MARKETING AND AUTOMATIC ONBOARDING YIELDS THE MOST NEW MEMBERS

18

19%

1%

1%

3%

6%

9%

10%

11%

18%

23%

Other

Purchase lists

Share a publically available online tour of the community

Offer incentives andgiveaways

Refer-a-peer programs

Run events

Email invitationsfrom our organizations list

Develop high-touchpersonalizedoutreach to prospective new members

Onboard allcustomersor employees to the communitybydefault

Use social mediamarketing to raise awarenessabout our community and drive traffic to it

0% 20% 40% 60% 80% 100%

• A wide variety of approaches are used to attract new members and no one proves to be highly successful overall. Successful new member acquisition methods seem to be based on community profiles.

• Respondents who consider their communities very successful are more likely to report that “onboarding all customers or employees” and “refer-a-peer programs” are top triggers to new member acquisition.

There were no themes in the other responses.

AMONG THE ACTIVITIES YOU USE TO ATTRACT NEW MEMBERSHIP TO YOUR COMMUNITY, WHICH ONE HAS BEEN THE MOST SUCCESSFUL IN CONVERTING NEW MEMBERS?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 19: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ONLY 4 IN 10 ORGS RESEARCHED PLATFORMS RIGOROUSLY, VERY SUCCESSFUL COMMUNITIES DEVOTE MORE EFFORT TO THE SELECTION PROCESS THAN OTHERS

19

High39%

Medium18%

Low21%

Not Sure/Don't Know22%

Respondents who consider their communities very successful and those from larger organizations are more likely to report that their organization expended “high” effort in selecting a software program.

HOW WOULD YOU RATE THE LEVEL OF RESEARCH EFFORT THAT YOUR ORGANIZATION DEVOTED TO SELECT A SOFTWARE PLATFORM?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 20: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

THE WEB WAS THE MOST COMMON METHOD OF RESEARCHING A COMMUNITY SOFTWARE PLATFORM

20

22%

14%

19%

22%

36%

41%

46%

58%

Other

Issued an RFP

Attended vendor conferences or meetups

Attended webinars

Peer referral

Conducted demos

Developed a business and technical requirements checklist

Web-based research

0% 20% 40% 60% 80% 100%

The most common other responses were “built our own” and “not sure.”

Respondents from larger organizations were more likely to indicate that their organization developed a requirements checklist, issued an RFP, and conducted demos.

WHAT TACTICS DID YOU USE TO RESEARCH A COMMUNITY SOFTWARE PLATFORM? [SELECT ALL THAT APPLY]

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 21: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ALMOST ALL COMMUNITIES HAVE A COMMUNITY MANAGER

Question: Is your community staffed with a dedicated Community Manager?

21

Yes – Full time68%

Yes – Part time22%

Yes –Outsourced

2% No8%

• More than 9 in 10 respondents indicate that they have a manager. Half of those have a single manager.

150%2 to 5

40%

6 to 105%

More than 105%

HAVE MANAGER NUMBER MANAGERS

Question: How many community managers does your community have?

IF YES

Larger, older, and very successful communities are more likely to have a full-time manager and more likely to have multiple managers.

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 22: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

TOP THREE CHALLENGES FACED: INTERNAL AWARENESS, LONG-TERM STRATEGY, AND METRICS

22

2%6%

11%13%13%14%

18%18%20%22%

27%31%

37%44%

Managing a team of community managersOutreach to other communities in your industry

Gathering and organizing product feedbackServing as the voice of users in business meetings

BudgetingManaging community ambassador program

Managing offline and/or online community engagement programsGenerate revenue

Building relationships with usersIntegrate with other lines of business (e.g. customer support)

Creating and executing on content strategyManaging business/community metricsBuilding long-term community strategy

Internal awareness of the value of community

0% 20% 40% 60% 80% 100%

• Internal awareness of the value of the community is identified as a top challenge by close to half of respondents.

• Respondents who consider their communities very successful are less likely to report “building relationships with users” as a top challenge and more likely to report “gathering and organizing product feedback” as a challenge.

• Larger organizations are more likely to identify “integration with other lines of business” and “internal awareness of the value of community” as top challenges.

PLEASE IDENTIFY THE TOP CHALLENGES YOU FACE AS A COMMUNITY BUILDER (SELECT UP TO 3)

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 23: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ORGANIZATIONS VALUE UGC & COMMUNITY SIZE ABOVE ALL ELSE

23

19%

7%

17%

17%

36%

37%

46%

53%

Other

None, we do not track outcomes of our community.

Revenue generated from the online community via ads and sponsorships

Social shares

New product ideas or feedback on existing products and services

Customer or user testimonials

Number of members

User created content

0% 20% 40% 60% 80% 100%

Respondents who consider their communities very successful are more likely to value “new product ideas or feedback.”

Top Other Responses:Support Deflection: 16Engagement: 13Satisfaction/Retention: 11

WHAT COMMUNITY OUTCOMES ARE MOST VALUED BY YOUR ORGANIZATION?(SELECT UP TO 3)

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 24: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

9 IN 10 CALL THEIR COMMUNITY A SUCCESS, HOWEVER ONLY 26% REPORT THEIR COMMUNITY IS VERY SUCCESSFUL

24

Very successful26%

Moderately successful

59%

Moderately unsuccessful

12%

Unsuccessful3%

HOW SUCCESSFUL IS YOUR COMMUNITY?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 25: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

TRUST & CLEAR STRATEGY: THE PREDOMINANT REASONS FOR COMMUNITY SUCCESS

WHAT IS THE PRIMARY REASON THAT YOUR ORGANIZATION’S BRANDED ONLINE COMMUNITY IS A SUCCESS?

Our members are engaged/trust community, 33%

Clear business strategy, 22%

Excellent community management, 14%

Community solves problems for members, 14%

Great content, 8%

Strong community growth & retention, 8%

Other, 4%

25

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 26: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

COMMUNITIES MOST LIKELY TO FAIL WHEN NOT GIVEN ADEQUATE SUPPORT AND RESOURCES

WHAT IS THE PRIMARY REASON THAT YOUR ORGANIZATION’S BRANDED ONLINE COMMUNITY WAS NOT SUCCESSFUL?

Lack of internal support and resources, 31%

Not enough engagement, 24%

Doesn’t address member needs, 17%

Other, 14%

Poor community management, 7%

Problems with platform, 7%

26

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 27: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

WHAT MAKES FOR A VERY SUCCESSFUL COMMUNITY

Question: How successful is your community?

27

Overall Very Successful= 26%

Those respondents who report high community growth and “new product ideas or feedback on existing products” as their most valued community outcome are almost twice as likely as others to state that their community is very successful.

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 28: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

28

Organizations ConsideringA Community

Page 29: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

CUSTOMER SATISFACTION AND RETENTION IS THE MAIN REASON COMMUNITY IS CONSIDERED

29

10%

1%

2%

5%

9%

9%

10%

15%

15%

20%

37%

52%

67%

Other

Customer dissatisfaction

Executive mandate

Because our competitors have one

To influence NPS scores

Market forces to compete

Reduce support costs

Customer requests

Generate revenue

Replace or supplement in-person events

To support brand champions

To gather ideas to fuel future products and services

Customer satisfaction / retention

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

There were no consistent themes among the other responses.

WHAT ARE THE PRIMARY REASONS YOU ARE CONSIDERING LAUNCHING AN ONLINE BRANDED COMMUNITY? (SELECT UP TO 3)

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 30: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

SHARING IDEAS & AMPLIFYING BRAND MESSAGE ARE VIEWED AS THE MOST IMPORTANT ACTIVITIES AMONG ORGS CONSIDERING A COMMUNITY

30

1%

5%

7%

7%

11%

15%

13%

13%

2%

3%

8%

17%

12%

15%

14%

13%

3%

4%

5%

8%

10%

7%

15%

37%

Other

Participate in research activities

Self-serve through videos and how-to tutorials

Create user generated content to reduce our content development burden

Get product support from each other

Solve problems by accessing experts and FAQs

Amplify our message, member advocacy programs

Share ideas / support each other

0% 10% 20% 30% 40% 50% 60%

3rd 2nd 1st

Organizations with a B2B Focus are more likely to indicate that “[solving] problems by accessing experts and FAQs” and “self-serve through videos and how-to tutorials” would be main activities.

IF YOU WERE TO LAUNCH AN ONLINE COMMUNITY, WHAT WOULD BE THE MAIN ACTIVITIES OF THE MEMBERS?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 31: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

COMMUNITIES OF THE FUTURE WILL BE BUILT ON A STRONG BUSINESS FOUNDATION

31

1%

13%

25%

28%

31%

46%

48%

50%

8%

13%

14%

17%

29%

39%

45%

56%

0% 10% 20% 30% 40% 50% 60%

Other

Purchase platform for an online community then build a plan

Build a financial model for community returns

Conduct customer journey mapping

Cite customer requests/used customer data

Develop a business case

Identify business needs community could help with

Found strong executive support

Have an online community Considering an online community

METHODS FOR GAINING FUNDING FOR AN ONLINE COMMUNITY

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 32: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

TWO-THIRDS OF ORGANIZATIONS CONSIDERING COMMUNITY PLAN TO STAFF IT IN-HOUSE

Question: Does your organization plan to staff the online community with a dedicated community manager?

32

Yes - In House64%

Yes -Outsourced

5%

No5%

We’re not sure23%

I don’t know3%

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 33: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

CUSTOMER TRUST IN BRAND EXPERTISE IS PRIMARY DRIVER FOR CONSIDERING LAUNCHING AN ONLINE COMMUNITY

33

7%

5%

6%

12%

18%

24%

29%

Other

Our customers or users asked for an online community

None, we didn’t weigh whether we would be successful or not.

We had the ability to create successful offline events with customers or users

Our users frequently outreached to us to get answers to their questions

Our organization helps solve complex issues so there is a lot for our members to discuss

Our customers or users trust us and want to engage with our expertise

0% 10% 20% 30% 40% 50% 60%

WHAT IS THE MAIN REASON YOUR ORGANIZATION BELIEVES MEMBERS WOULD PARTICIPATE IN AN ONLINE BRANDED COMMUNITY?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 34: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ORGANIZATIONS PERCEIVE A VARIETY OF OBSTACLES TO LAUNCHING AN ONLINE COMMUNITY

34

18%

8%

10%

13%

20%

33%

38%

41%

41%

57%

Other

We are in a regulated industry

Legal concerns

We don’t have executive support

Members will criticize our company or say things online that we don’t support

We don’t have the staff or expertise to run an online community

Creating new content ongoing is a burden

We don’t understand the operational impact of running a branded online community

We don’t understand all the costs associated with this initiative long term/ it may be too expensive.

The community will fail to be vibrant

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Several other respondents identified time as an issue.

WHAT ARE YOUR ORGANIZATION'S BIGGEST CONCERNS ABOUT LAUNCHING AN ONLINE BRANDED COMMUNITY? [SELECT ALL THAT APPLY]

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 35: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

LACK OF VIBRANCY IS THE BIGGEST CONCERN SHARED BY ORGANIZATIONS CONSIDERING AN ONLINE COMMUNITY

35

15%

2%

2%

3%

4%

7%

9%

9%

14%

35%

Other

We are in a regulated industry

Legal concerns

We don’t have executive support

Members will criticize our company or say things online that we don’t support

Creating new content ongoing is a burden

We don’t have the staff or expertise to run an online community

We don’t understand all the costs associated with this initiative long term/ it may be too expensive.

We don’t understand the operational impact of running a branded online community

The community will fail to be vibrant

0% 10% 20% 30% 40% 50% 60%

Various others including staff time/bandwidth and lack business case

WHAT IS YOUR ORGANIZATION'S MOST IMPORTANT CONCERN ABOUT LAUNCHING AN ONLINE BRANDED COMMUNITY?

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 36: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

36

Have Or Considering A Community

Page 37: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

GAINING TRUST, IMPROVING CUSTOMER SERVICE AND CORE OPERATIONS ARE VIEWED AS BIGGEST BENEFITS COMMUNITY HAS TO OFFER

37

7%

11%

4%

2%

18%

17%

18%

5%

2%

4%

2%

2%

49%

37%

33%

29%

12%

10%

14%

13%

17%

24%

32%

40%

43%

40%

36%

35%

9%

11%

13%

24%

42%

46%

47%

50%

0% 20% 40% 60% 80% 100%

Streamline the supply chain

Generate direct revenue

Reduce costs

Generate indirect revenue

Improve the “customer journey”

Yield feedback to improve core operations

Provide better customer service

Enable greater trust with your organization

Definitely Will Not Probably Will Not May or May Not Probably Will Definitely Will

Those who consider their community very successful are more likely to believe that a community will improve the customer journey, reduce costs, generate direct revenue, and streamline the supply chain.

USING THE SCALE BELOW PLEASE INDICATE TO WHAT DEGREE DO YOU BELIEVE A BRANDED ONLINE COMMUNITY WILL DO EACH OF THE FOLLOWING.

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 38: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

8 IN 10 CONSIDER INTEGRATING CORE BUSINESS PROCESSES INTO COMMUNITY TO BE IMPORTANT

Very important46%

Somewhat important

37%

Somewhat unimportant

12%

Very unimportant5%

HOW IMPORTANT IS IT TO INTEGRATE CORE BUSINESS PROCESSES SUCH ASE-COMMERCE OR CUSTOMER RELATIONSHIP MANAGEMENT INTO YOUR COMMUNITY?

38

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 39: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

39

Firmographics

Page 40: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

ORGANIZATION SIZE AND FOCUS

Question: What is the size of your organization (number of employees)?

40

Both business to business and business to consumer

31%

Business to business

37%

Business to consumer

21%

Association or membership organization

7%

Other4%

ALL ORGANIZATION SIZES WERE REPRESENTED, AS WERE A VARIETY OF ORGANIZATIONAL FOCI.

35%

20%

9%

15%

4% 4%

12%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Question: What is the focus of your organization?

SIZEFOCUS Most “Other”

respondents were nonprofits or education

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016

Page 41: Keys to Community Readiness and Growth: How Brands Prepare for Online Community

MANY RESPONDENTS FROM COMMUNITY AND MARKETING BUSINESS UNITS

Question: What Department are you in?

41

18%

0%

0%

0%

3%

6%

8%

8%

23%

32%

Other

Legal

HR

Finance

Sales

Strategy

Communications

Product development

Marketing

Community

0% 10% 20% 30% 40% 50% 60%

Over half of respondents are in the Community or Marketing Departments

Top Other Responses:Support: 19IT: 7Executive: 7

“Keys to Community Readiness and Growth" by Leader Networks and CMX, 2016