It’s no secret that many Brands realize tremendous value from their social media and online community efforts. Value in the form of cost-reduction for support and service, ideas for and feedback on products, product and brand advocacy… the list goes on and on. Most organizations have analytics in place and some form of dashboard that tracks performance, and in many cases, actual financial impact of social and community efforts.
Unfortunately, there is also a problem with the current approach Brands take: it’s unsustainable – unsustainable because it is predicated on Customers doing valuable work for free.
Stay with me here. In the early days of community, all brands really had to do was show up. Hosting a discussion forum met pent-up need for customers to connect, share and help each other. The motivation for participation was generally either purely altruistic and/or driven by the desire for enhanced reputation and recognition.
More recently Community Advocacy programs, elaborate reputation systems and game mechanics were introduced to drive contribution to communities. On the one hand, these programs and technologies enhance the Brand community experience. On the other (and more cynical) hand, they could be perceived as an inequitable attempt to squeeze more value from community members.
Further, there is currently an explosion of expertise and talent marketplaces like Maven, PopExpert, Odesk, Google Helpouts and 100s of others, Community experts now have myriad marketplace options and some are starting to charge for their talent and expertise.
To net it out:
1. Brands generally view Communities as cost-saving vs. value producing, and consequently:
2. Brands haven’t truly considered what an equitable value exchange might look like between the organization and the community;
3. Compensation to the community contributors comes in the form of either reputation and / or fulfilling on an altruistic need, with a very small percentage of member getting “MVP” benefits;
4. There is an explosion of knowledge and service marketplaces that allow experts to place financial value for knowledge and expertise.
In short: Brands have to rethink their social and community strategies from an exchanged-value perspective, or risk losing their community.
What to do?
The most critical thing is to rethink the Social & Community value equation, and to move beyond the myopic view of Customer Communities as solely a means to reduce cost. Instead of asking what the benefit is to the organization, real research and critical thinking needs to be applied to the needs, expectations and values of customers who might participate in a community. The range of value received from the the community by participants needs to be broadened – access to communal knowledge and connections are an expected part of the digital experience now. Compensation for Community participation and contribution must evolve beyond reputation and become more tangible, possibly in the form of products, services or even financial compensation.
A few key questions to explore:
What if community members knew the explicit value of their attention and contribution to a community?
- What impact would this knowledge of value have on the current community?
How might we enhance the community experience by surfacing and rewarding contribution beyond rank and reputation?
What are the emerging knowledge and service marketplaces that might attract our current key contributors?
How might our competition attract our customers with a more valuable community experience?
I’d love to hear other’s perspective on the issue of sustainable participation. Please chime in via the comments below.