In today's world there is so much content around us that it is very difficult to stand out and to attract new customers. It is also important to note that ad rates are rising and overall trust in brands is declining and becoming more volatile. Building a loyal customer base is more difficult than ever.

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This is also why there is a huge rise in personal brands which then build communities. Yes we do want to avoid guru-type stuff but the community part can be a game changer. 

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Many businesses focus on growing their audience and lead generation by duplicating their marketing budgets every year to tackle the competition without realising the potential of building communities by giving value. And no, a newsletter is not a community yet, but it can be used to build a community. 

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Communities can be built even by the “boring conservative” businesses and they are hugely beneficial. They are a great tool to build a loyal customer base with increasing LCV/CLV and decreasing customer churn rate.

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Building a community is very individual but let's dive in into a few recommendations that can inspire and help you build community in your business.

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What Is a Community in Business?

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Community is a group of customers, followers or enthusiasts. It can be digital or physical where these people share interests, ideas or some problems. We will think about it today more as a digital community which we can use to grow our customer base. 

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Obviously creating a physical community is also very effective, if not even more, but it is much harder to create for most businesses. But for example even if you make microchips you can create a run club.

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Here’s the key distinction:

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• Audience: It's only one-way communication. You share and your customer base consumes.
  
  
• Community: This is two-way communication. Your consumer base also shares between each other and your business.
  
  

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In a strong community, your customers aren’t just listening, they’re also participating.

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Why Community Matters for Growth

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Traditional acquisition or customer satisfaction strategies cannot replicate what communities can do. If you look at Apple, people make communities around their love for the product but obviously we are not in Apple´s shoes and so we have to create these communities ourselves around our products, services, industry or anything that most of our customers can relate to. So even though it is not very obvious with some businesses it's a huge part of what makes them great. 

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Reduced Customer Acquisition Cost (CAC)

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With ad platforms getting more competitive and expensive, relying solely on paid media is risky. A well-nurtured community can reduce CAC by driving:

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• Referrals and word-of-mouth
  
  
• Organic content creation
  
  
• Brand loyalty that leads to repeat purchases

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Acquisition cost from the community should be measured separately from advertising.

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Increased Customer Lifetime Value (LTV)

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Communities keep people engaged long after they’ve made a purchase. When people feel like they belong somewhere, they’re more likely to:

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• Stick around
  
  
• Buy again
  
  
• Recommend your product to others
  
  

Learn more about customer lifetime value here.

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Real-Time Feedback and Innovation

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Your community is a group of passionate and loyal customers that are there to share. You can use it to:

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• Validate new ideas
  
  
• Gather user feedback
  
  
• Spot trends or issues early

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Oh that is not applicable to my business

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Yes it might not be the first choice for some businesses. The common perception is that this is mostly for influencers and personal brands, but aren’t those the ones we’re already paying to share our products with their audience and community? 

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And yes, highly regulated B2B’s with state contracts like defense or biotech industry cannot build communities but for most businessess you can always turn it upside down and find a shared interest between your customers.

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Let's give an example: Real Estate

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Challenge: Home purchases are infrequent and high-cost. Traditional marketing is transactional.

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Strategy: Focus on local connection, education, and lifestyle.

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Ideas:

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• Create a Facebook Group or Whatsapp group for a specific neighborhood or city (“Real estate in Malaga”).
  
  
• Host free webinars to inform first-time buyers and help investment buyers to get better.

• Share free educational content and market updates.

• Share local business spotlights and renovation stories to drive engagement beyond listings.
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Make it more detailed and tailor it to your customer base, but you get the overall idea of it being possible even for conservative businesses. You can use the same strategy to build a community of the best agents. Always ensure any user posts comply with local and privacy laws.

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Ways to Start Building Community Today

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Here are three simple steps you can go through in order to build a community:

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• Choose one of the hundreds of apps available. Focus on what's comfortable for your customers, not for you. Avoid platforms like Discord if your audience skews over 40.

• Market your community - newsletter, social media, CTA on a website, etc.

• Encourage communication, sharing knowledge and real life events

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Make sure to have moderation by admins and make sure your community is a safe place.

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Any last words?

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This wasn't an information packed blog like usual but I think the idea came through. Communities are such a great way to build a loyal customer base, get fast, valuable feedback and generate sustainable revenue. 

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My goal was to give you the drive to create a community around your business, no matter what business you have. In a crisis moment, such as another unexpected event like Covid, your active community can be your first line of defense.

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Thank you for reading,

Damian from Visio.

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