Many organisations now recognise the value of social media to increase brand awareness, market share, sales referrals, customer testimonials and to boost loyalty, improve response to negative issues and reduce the cost of supporting customers.
Research has shown that while just 17 per cent of people believe corporate or product advertising, 78 per cent of people trust information from their peers. Therefore organisations that have productive forums and active online communities have the opportunity to harness the referrals and recommendations of their members for the benefit of - or in defence of - their product or service.
In the US, FICO, a financial services organisation, was able to achieve a 66 per cent increase in sales by encouraging customers to join its online community. Thirteen per cent of its sales resulted from someone viewing a community page.
As well as boosting sales, FICO was able to reduce costs through social networking. Ten per cent of its customer calls are directed through the online community so its own customers provide assistance which has reduced their average customer service call costs.
But while many organisations have responded to such success stories and quickly promoted online forums, quite a few have failed to truly understand the dynamics of how these communities really work. As a result a large proportion of online communities designed for business purposes haven’t grown to a point where the benefits can be realised.
Why do some communities falter? Although they may function well technically, many online communities fail to recognise that people are the key drivers of success. Frequently, social media platforms don’t provide the psychological incentives and rewards that encourage users to revisit, contribute knowledge, and thus cultivate the strength and relevance of the online community.
To build a strong online community around a brand, companies first need to understand what attracts people to social networking sites and motivates them to become active participants.
Based on a psychological understanding of online participation, the Australian Psychological Society’s College of Organisational Psychologists has prepared some tips to help organisations engage their audience and build online membership.
The process an individual follows when moving from a non-member to an actively participating member in an online community is summarised in the following diagram:
The process an individual follows when moving from a non-member to an actively participating member in an online community is summarised in the following diagram:
To attract the ‘non-member’ who is interested in becoming part of a community, it’s best to make sure the information within your community is easy to search and find. Organisations should ensure that:
These features increase the chance that the community will be found, and the information on the community easily identified by potential members so they can determine if this is the community they’re looking for.
To meet the needs of the ‘observer’, it’s important to help them learn that other members in the community can be trusted, can provide help and can benefit from information the ‘observer’ holds. To meet the needs of people in this stage, organisations can structure the community so that:
Exposing this information will make it easier for the potential member to both decide if the intent of the community is right for them, and if they like the members of the community. They can quickly answer questions such as ‘is this community like me?’, ‘do members share my values?’ and ‘will I be accepted?’
Individuals at the “regular observer” stage are likely to begin developing a sense of belonging to the community, as they visit more frequently and access valuable information provided by members.
Drawing these users across the observer/participant barrier to a more established stage in the process involves encouraging users to reinforce their feelings of belonging to the community by identifying themselves actively as a member.
At this stage, it is also important to emphasise the uniqueness of the information the regular observers have to contribute, by supporting the individual’s need for both acknowledgement and self-verification. The following features will promote this process:
These features will encourage users at this stage to become a member and to begin contributing knowledge to the community, thereby emphasising social recognition and reward for contributing knowledge.
Once individuals have registered as a member, they move from observing to occasionally contributing to the community crossing the ‘observer/participant Barrier’. Organisations can encourage the frequency of these contributions by:
Applying these features will help in addressing user needs for identity and acknowledgement within the community, while maintaining and promoting a sense of reward and recognition for the contributions they make.
To cultivate a strong community, it is important, when maintaining members and promoting users to higher member ‘levels’ towards the ‘leader or super-user’, that other needs such as the sense of attachment, belonging and identity are still met.
Continuing to reward all members within the community for their contributions (rather than focusing on one member ‘level’) will ensure their connection to the community is maintained. This recognition and reward, in turn, will likely ensure the development of a strong and enduring social community. Organisations should:
Consider getting help from an organisational psychologist to help your business create an effective online presence. Organisational psychologists have a specialist focus on analysing organisations and their people, and devising strategies to recruit, motivate, develop and change.
They base their practice on science, drawing on psychological research and tested strategies to influence how people act, think and feel at work. This scientific approach provides confidence that methods produce measurable, replicable and potentially more cost-effective results.
To locate an organisational psychologist, use the APS Find a Psychologist service:
This backgrounder was prepared with the assistance of organisational psychologist, Craig Errey, Managing Director of PTG Global. To contact Craig, email: craige@ptg-global.com or go to www.ptg-global.com