Category: Strategy

Understanding the Community Opportunity (Community Value Part 2)

Note: this is the second in a series of posts about community value. If you missed “A Perspective on Community Value“, I’d recommend starting there.

Florence: a city that knows a thing or two about community, opportunity and value

In the last decade, many companies have come to understand how valuable (and critical) their direct relationships with customers are. The most strategic organizations understand that these relationships are part of a larger network – the hub and spoke model, with the company at the center – is very much a thing of the past.

These “networks of relationships” amongst customer, prospects, partner and employees are often largely unactivated – primarily because companies don’t understand the potential value and how to begin to explore the possible opportunities. They often have trouble envisioning a future state of their community because a) they can’t see beyond the “traditional” model of support-based communities or b) they lack the internal capability and skill to lead a comprehensive discussion. In our work at Structure3C, we’ve found that understanding and discussing the following three contexts is a helpful way to begin the conversation. 

In the simplest terms, the three contexts are:

  1. Customer lifecycle journeys: Where in the journey is community valuable?
  2. Criticality of product / service engagement: Which community experiences are valuable, based on use of product or service?
  3. Total addressable community: How many people can you expect to participate in your communities?

1. Customer Lifecycle Journey – Career Journey (as an initial model)

Understanding your customer relationship lifecycle, by persona, will provide helpful context to envision where in the set of journeys community may play a valuable role. We will use a career arc as a specific example here, but one can envision other scenarios beyond enterprise software, like the lifetime relationship a customer might have with a technology brand like Apple.

Example:  Think about the career arc of an Industrial Designer using Autodesk’s Fusion 360 design software. Throughout her career, the designer will progress from primarily designing, to leading a small team of designers, to “owning” the design function at a company (the Skilled Practitioner arc in the diagram below). This designer’s peer may start off in design but decide she would prefer to focus on leadership and progresses through to become the CTO or CMO of the company (the Executive arc in the diagram).

Considerations:

  • Number of distinct Customer Profiles  (~Personas)
  • Entire career journey, length of career, and the stages in that career journey

Key Questions:

  • What role might community play in each career transition point?
  • How does / could the community support development and transition?
  • Can your organization support the full Customer Career Journey, or does it make sense to partner with complimentary organizations?

2. Engagement with Product by Customer Profile, Over Time

Understanding the depth of product / service engagement by customer profile can give insight into the level of effort, the specific motivations, and the needed resources customers need to master your product, and by extension, advance in their career. This understanding can guide what community experiences you offer (and what community investments you make). Consider the previous example of an Industrial Designer who would be using design software tools most of her day early in her career, but would likely manage tool users later in her career. Her relationship with the tools changes over her career, and her needs related to skills development and learning change as well. 


Considerations:

  • Complexity of product / services
  • Effort required to attain skills / mastery
  • Amount of time spent using product / service
  • Amount of time spent in surrounding ecosystem – courses, conferences, meetups, online content, expert communities, etc.

Key Questions:

  • How much time will the customer spend mastering product / services and necessary skills?
  • How much time will the customer use the product in their work?
  • How much time is it reasonable to expect a Customer to spend participating in your community weekly?
  • What form factor and level of effort is required for quality participation?

3. Total Addressable Community & Crowd

Lastly, back to the point made at the beginning of this post: customer, prospect, partner and employee relationships are all part of a larger network. Understanding how big that network is creates your “denominator”, or gives you a sense of the largest possible size of your community. What if you were able to connect with 25% of your customers and prospects – what might that look like? How many customer types are represented in that percentage? Would they all naturally interact in one community experience, or might you need to support multiple experiences by customer type and / or stage in the relationship?


Considerations:

  • Overall Market Size
  • Current Customer Base
  • Projected growth (ideally segmented by Customer Profile)
  • Target vs Current Community Membership (again, segmented by Customer Profile)

Key Questions:

  • How big is the total addressable market?
  • What % of active customers are targeted for community engagement?
  • What business value can be realized at scale?
  • How can the community business case be optimized by extrapolating investment vs return at scale? At what point does the investment vs return reach equilibrium? Go negative?
  • How does the Customer value proposition change at scale? Is there a true Network benefit, or flat / diminishing return at a certain point in the growth arc? 

Next Up: Strategy

I hope you found the ideas in this post useful, and to a certain degree novel. My intention with this series is to help open the aperture a bit on how community strategy is considered, developed and implemented. I hope it is now clear that I’m advising an approach that things about the entire lifespan of customer relationships, the complexity (and exponential value) of thinking about customer relationships in networks (vs 1:1), and considering the dynamic nature of a customers relationship with a brand and products (and therefor, any potential community) over time.

Next up in the series: My framework on community strategy + planning templates for your 2022 community initiatives.

Exiting the Social Boom and the Entering the Era of Transformational Communities

I feel very fortunate to have established a career developing communities (both on and offline) over the last 20+ years. During this time, I’ve seen a steady series of boom and bust cycles for “community” – large waves of investment and development followed by retreat and divestment. During the transition times between the cycles, one of my favorite questions to ask friends and colleagues in the space is: “Where are we on the map?”

We Need a New Map

We are in another period of community investment and growth, fueled in part by COVID-driven restrictions that prevent us from connecting in-person. There is also reason to believe that this wave will actually break the invest/retreat cycle we’ve seen since the late 90’s, and put community (as a concept, practice and industry) on a path towards sustainable growth and development. As such, we are largely entering new territory, and there aren’t maps for where we need to go.

Over the past 2 years, through a combination of primary research and a hosted Mastermind community (the Cohere project) I’ve been thinking about this new territory and how to begin our journey through it. In the post below I attempt to summarize my thinking by giving an overview of:

1. Three focal areas community leaders need to pay attention to;

2. The exiting of the long “Social Boom” and a notional look at what the next epoch of community might look like;

3. How community strategy is evolving

3 Focal Areas

There are many things that shape the opportunity and need for community development. Some are technical, some are societal, others relate to individual human behavior. The list below intends to highlight what I consider the three most important and consequential areas.

  1. Global Internet access – in the next 10 years, the majority of the rest of the world will come online, bringing all the opportunities and issues we’ve witnessed in the developed world, along with a whole host of new ones. We (collectively) are wholly unprepared for this change in almost every way, with issues ranging from policy, to security, access rights and more.

2. “Humanity’s Graph”- Mark Zuckerberg’s stroke of genius was realizing that not only was an individual’s digital data incredibly valuable, but their network of relationships (both actual and possible) was as well. In the coming years, the pressure of competition, policy, technology and individual behavior will crack open these currently frozen and proprietary social graphs to create a global mesh that will essentially be “Humanity’s Graph.”

3. The impact of exponential technologies – Exponential technologies are defined as technologies that double in power and/or speed, or the cost drops by at least half annually. An example is the combinatorial effect of AI, machine learning and automation that not only shapes your experience on a social network like Facebook, but can also participate in that experience as a non-human actor.

Any one of these focal areas alone is powerful. We are literally struggling to imagine the combinatorial effect of all three.

The End of the Social Boom

Web-based online communities have been around since… well, the inception of the web. News to you? OMG read a book. Starting in the late-2000s, the grass roots dynamics of the early web (which felt very much like a giant community) shifted to increasingly centralized social media and social network sites and apps, with Facebook drawing the lion’s share of global attention and engagement.

For community leaders working within large brands, this myopic focus on social media has wreaked havoc on community programs – from creating dissonance around the concept of community, a misguided predisposition to invest in social media presences and the unfortunate tendency to relegate (and isolate) community programs to functional areas within the business, usually support. This is an especially vicious cycle, as “enterprise class” platform investments can be well over 7 figures annually, essentially creating community programs with multi-million dollar investments in people and tech that, at best, are just breaking even with their resulting cost savings. This practice stifles more strategic conversations about community strategy and the possible value of community.

Fortunately, we are seeing green shoots popping up everywhere that signal a community spring of sorts. From innovative (and lower cost) platforms, to community organizations being integrated into the fabric of the business. More nuanced conversations about the value of communities, and an equitable distribution of that value between host and member are being had.

As we exit the Social Boom, what’s next for communities? An era I’m optimistically dubbing “Transformational Communities” – one that centers on the power of communities to transform individuals, groups and organizations for the better.

The Evolution of Community Strategy

To begin to explore, and eventually inhabit, this new territory, we need we need new ways of thinking, new methods of practice and new tools.

In particular, we have to break out of the pattern of relying on technology to dictate strategy. Legacy community platforms are hyper-optimized for support interactions and social media platforms are optimize user attention – laggards are stuck struggling with native functionality. We need to understand where community can add value to individual customer experiences and shift our thinking to the possibilities of creating value throughout the entire lifecycle of a customer relationship – Leading programs are investing here.

Future growth opportunities will be unlocked through a more sophisticated approach to community development, where every stakeholder has the opportunity to participate, and the “network of relationships” is seen as both a valuable asset and a catalyst for transformation.

Exploring the Territory

If you are interested in learning more, there are several opportunities:

Customer Communities Are Critical For Business Transformation

The last few years have seen big brands make extraordinary investments in developing massive “digital transformation” and social media programs. On one hand, these programs have yielded moments of customer connection, advocacy and insight. Unfortunately, for the majority of programs reliant on mass social platforms like Facebook and Twitter, organic reach has dropped effectively to 0 and companies are now forced to pay to engage sporadically with the “audiences” they worked so hard to build. Companies now realize they have been renting their customer communities on social platforms.

Photo by Kipras Štreimikis

The alternative to social media campaigns and digital transformation theatrics? Developing Customer communities. Specifically, online Customer communities that companies build, host and manage. Customer communities hold the key to Customer acquisition, retention and growth. Further, communities can be a catalyst for development and innovation, and will be critical to future business models. Below I explore the opportunity for Customer community in three key Corporate areas: Brand, Product and Innovation.

Community is the Fabric of Brand

markables_relatoinship

What is the nature and value of brand in a hyper-connected world? A recent HBR article asserts that the collective value of  Customer relationships is outstripping the value of “brand.  The authors of the article nail the point that Customer relationships are incredibly valuable, but may have missed an opportunity to explore the effect of the customer community as a brand asset & catalyst — the line between brand and relationship isn’t as crisp as the authors imply. Further, I would assert that the “network” of relationships represented by the collective customer base of a company is a manifestation of brand, every bit as important and as valuable as the components of brand identity. My primary research and experience has shown connected customers (via community and social) are more valuable than those that aren’t. Third party research by Deloitte has shown that Networked companies (“Network Operators”) perform better, live longer, and are more valuable. All of these points are are vectoring towards a new opportunity and a new frontier in business: Community-Centric Customer Experience — an approach to customer experience design and business strategy that not only strengthens the Company to Customer relationship (1:1), but also strengthens and develops the Customer to Customers & Company relationship (1:Many, a.k.a. the “Community”). and considers development of the Community the primary .

Communities Will Infuse & Enhance Product Experience

Customer communities are an essential part of most technology products now. At the very least, online support forums are expected as part of the offering (more on that in a bit). Many companies are experimenting with customer communities as a means to raise product awareness, convert trial customers and retain existing customers. A radical new business opportunity is emerging where the community (both the people and the platform) are the actual product. Purchases are artifacts or a gateway into the community experience, and the real “product” is the collective experience, knowledge, content and means of collaboration with the community. There are many early examples in the gaming world, from MMOG’s like World of Warcraft to the new “build and explore” virtual worlds like Roblox. Software companies are attempting to build communities that address the “whole customer”, and focus on experiences well outside of product support. Adobe (Behance), Autodesk (Instructables, Fusion360, AREA), Salesforce (Trailblazer Community), and Sephora (Beauty Talk) are actively investing in the community space.

Communities Drive Innovation & Long-Term Value

There is an unfortunate tendency to view Customer communities as “cost saving” vs “value producing”. This thinking leads to strategies and outcomes that fail to realize the full value of customer communities, and is rooted in a long standing dependence by some companies on customer support communities. In extreme examples, this sort of strategy breeds resentment with valuable customers and leads to a dangerous dependence on an unsustainable resource. When the Corporate mindset shifts to “value producing”, the aperture of community strategy widens to a rich set of possibilities: community advocacy programs, open innovation, peer to peer mentoring, complex content sharing, customer co-design and much more.

Moving forward, Customer communities will be the medium by which value is co-created and exchanged between Companies and customers. To have any chance of long term success with Customer communities, mindsets have to evolve beyond a fixation on cost savings to a more enlightened view of communities as a valuable catalyst for innovation and growth.

The value exchange between organizations & individuals via community.

The Bottom Line:

Customer communities are the “fabric of brand”, the medium in which the network of customer & company relationships develops and thrives. Companies that create modern communities with their customers will be more innovative, realize more value and have more resilient businesses than their competitors who don’t.

Announcing the C3/A3 Project: The Connected Future of Communities, AI & Automation

Sci-fi fractal background - abstract digitally generated image

The C3/A3 Project

C3: Community, Crowd, Collaboration
A3: AI, Agents and Automation

Humans instinctively seek meaning, connection and resources through community. Driven by near ubiquitous access to broadband and the rapid adoption of smartphones, our new and ever-expanding digital world offers instant access to a rich tapestry of social experiences, fundamentally changing the way we seek, find and participate in community. 

Currently, individuals and organizations are struggling to adapt to our evolving digital world, particularly the social technologies we use to connect and communicate with each other. Complex human networks are springing up on and across myriad social media, social network and topic-based communities, forming community ecosystems that transcend technological, geographical and organizational boundaries.

Looking forward, it seems things are about to get even more complicated. A new set of technologies is emerging to augment human cognition (AI), enhance human agency (Agents) and shape digital experiences and outcomes by taking advantage of a rich set of tools and APIs (Automation). We see these three technological forces (AI, Agents and Automation) as the next immediate wave of disruption in digital experience, and we see Community, Crowd and Collaboration as the social contexts in which technology and humanity will interact for the betterment (or detriment) of humankind.

The C3/A3 Project Overview

Our hypothesis is that this combination of social technologies with human augmentation technologies will usher in a new age of digital community experiences. These new experiences will present unprecedented opportunities and challenges for organizations and individuals, and complex policy issues for society.  The C3/A3 project will explore the technological, business and societal implications of this next wave of change and offer a helpful path forward.

Focal areas:

  1. Technology: The current and emerging technology landscape
  2. Business: Corporate strategy, competence, needs and level of readiness
  3. Individuals: Customer (a.k.a. Community member) needs, expectations and likely challenges

Key Components of the Project:

  1. Community Executive survey – February 26th
  2. Technology landscape analysis
    1. Community platforms
    2. AI technologies ( ex: Watson, Einstein)
    3. Agent interfaces (ex: Cortana, Alexa, Obindo)
    4. Automation platforms
  3. Executive interviews with select technology providers, early adopters and startups
  4. Mass practitioner survey
  5. Customer (Community End-user) survey

Reports and Mastermind

The output of the project will be a series of reports throughout 2018 that publish key findings. An executive mastermind group for brands and select startups will be formed to deeply explore relevant topics.

Getting Involved

The first wave of research launches on Monday, February 26th with an invitation-based survey to Executives who own community and social media experiences for their respective companies. Detailed results will be shared privately amongst this group, and summary data will be shared publicly.

If you would like to participate in the research survey and subsequent Mastermind discussion, please send me a note: bill@structure3c.com.

Reminder: This phase of the research is open to Executives at large organizations (5000+). No agencies or consultancies please.

The Customer Community

Screen Shot 2017-03-30 at 10.32.39 AM
Image © Leigh Prather

The last few years have seen big brands make extraordinary investments in developing massive “digital transformation” and social media programs. On one hand, these programs have yielded moments of customer connection, advocacy and insight. Unfortunately, for the majority of programs reliant on mass social platforms like facebook and twitter, organic reach has dropped effectively to 0 and companies are now forced to pay to engage sporadically with the “audiences” they worked so hard to build. Companies now realize they have been renting their customer communities on social platforms.
 
The alternative to social media campaigns and digital transformation theatrics? Developing Customer communities. Specifically, online Customer communities that companies build, host and manage. Customer communities hold the key to Customer acquisition, retention and growth. Further, communities can be a catalyst for development and innovation, and will be critical to future business models. Below I explore the opportunity for Customer community in three key Corporate areas: Brand, Product and Strategy.

Community is the Fabric of Brand

What is the nature and value of brand in a hyper-connected world? A recent HBR article asserts that the collective value of  Customer relationships is outstripping the value of “brand. markables_relatoinship The authors of the article nail the point that Customer relationships are incredibly valuable, but may have missed an opportunity to explore the effect of the customer community as a brand asset & catalyst — the line between brand and relationship isn’t as crisp as the authors imply. Further, I would assert that the “network” of relationships represented by the collective customer base of a company is a manifestation of brand, every bit as important and as valuable as the components of brand identity. My primary research and experience has shown connected customers (via community and social) are more valuable than those that aren’t. Third party research by Deloitte has shown that Networked companies (“Network Operators”) perform better, live longer, and are more valuable. All of these points are are vectoring towards a new opportunity and a new frontier in business: Community-Centric Customer Experience — an approach to customer experience design and business strategy that not only strengthens the Company to Customer relationship (1:1), but also strengthens and develops the Customer to Customers & Company relationship (1:Many, a.k.a. the “Community”). and considers development of the Community the primary .

Communities Will Infuse Product

Customer communities are an essential part of most technology products now. At the very least, online support forums are expected as part of the offering (more on that in a bit). Many companies are experimenting with customer communities as a means to raise product awareness, convert trial customers and retain existing customers. A radical new business opportunity is emerging where the community (both the people and the platform) are the actual product. Purchases are artifacts or a gateway into the community experience, and the real “product” is the collective experience, knowledge, content and means of collaboration with the community. There are many early examples in the gaming world, from MMOG’s like World of Warcraft to the new “build and explore” virtual worlds like Roblox. Software companies are attempting to build communities that address the “whole customer”, and focus on experiences well outside of product support. Adobe (Behance), Autodesk (Instructables, Fusion360, AREA), Intuit (OWN It) and Sephora (Beauty Talk) are actively investing in the community space.

Opening the Aperture on Strategy

There is an unfortunate tendency to view Customer communities as “cost saving” vs “value producing”. This thinking leads to strategies and outcomes that fail to realize the full value of customer communities, and is rooted in a long standing dependence by some companies on customer support communities. In extreme examples, this sort of strategy breeds resentment with valuable customers and leads to a dangerous dependence on an unsustainable resource. When the Corporate mindset shifts to “value producing”, the aperture of community strategy widens to a rich set of possibilities: community advocacy programs, open innovation, peer to peer mentoring, complex content sharing, customer co-design and much more.

Moving forward, Customer communities will be the medium by which value is co-created and exchanged between Companies and customers. To have any chance of long term success with Customer communities, mindsets have to evolve beyond a fixation on cost savings to a more enlightened view of communities as a valuable catalyst for innovation and growth.

The Bottom Line:

Customer communities are the “fabric of brand”, the medium in which the network of customer & company relationships develops and thrives. Companies that create modern communities with their customers will be more innovative, realize more value and have more resilient businesses than their competitors who don’t.

To Develop a Community, Think Network First

IMG_1296

Nevertheless, we now realize that no whole, be it a family, a business, a community, or a nation, can be managed without looking inward to the lesser wholes that combine to form it, and outward to the greater wholes of which it is a member.” 

Allan Savory, from “Holistic Management”

Need a Community? You Have (at least) One

After 15 years of designing and activating online communities, I’m still surprised when I hear from a potential client that they “need to create” an online community. Wether you realize it or not, you have and belong to many communities. Further, you intentionally or unintentionally play many roles within those communities – host, member, participant, advocate, creator, and at times, possibly even destroyer. You may be asking yourself “so, what is a community? How do I know where my community is? How do I define community?” Though typical, those are the wrong questions to start with.   

Context is King

The word “community” is problematic. It can have as many meanings as there are people in an organization to make meaning, ranging from the local geographical community, to a peer to peer technical support community, a social media page or a working group focused on solving a specific problem. I’ve held conferences where the question of a canonical definition of community was debated by some of the smartest people I know in the industry, and the question was left unanswered. Why? Two reasons: 1.) a helpful answer must be developed in the strategic context of the host organization and their extended network and 2.) community as a metaphor is often too specific and limiting – why we often see communities as a solution looking for a problem.

To expand on the Savory quote at the beginning of this post, to fully understand the potential for communities in your organization, you have to understand the actual smaller and discrete communities that make up your organization (employees, partners, alumni) , and the larger communities that your organization is a part of (industries, markets, causes, etc.). The “whole”, if you will, is really a network. Increasingly, I find starting a strategy conversation with “community” can be burdensome, and that “network” is a more helpful (and neutral) place to start.

Network as a Rubric

Why “Network”? Network, defined as “a group or system of interconnected people or things” describes a set of connected entities but does not imply or assign activities, relationships or outcomes the way “community” seems to. Using network as a blank canvas allows you to create strategy from drawing from the largest possible pool of value. Thinking “Network” means you are considering the full set of relationships among stakeholders, assets, and increasingly, artificial intelligence actors that could potentially  be developed. From the baseline of network, a more holistic strategy can be created that is inclusive of community, social, and digital innovation.

As an example of Network Thinking, I developed the graph below as part of an exercises to inventory and explore opportunities for stakeholder groups allowing access to assets in an online marketplace.

 

The Future of Networks

“What is true for the machines all around us now is true for us too: We are what we are connected to. And mastery of that connection turns out to be the modern version of Napoleon’s coup d’oeil, the essential skill of the age.”

Joshua Cooper RamoThe Seventh Sense: Power, Fortune, and Survival in the Age of Networks

One of the best books I’ve read recently is The Seventh Sense” by Joshua Cooper Ramos. In the book, Ramos describes the role of networks in the age of massive disruption that we are beginning to live through – on par with the Industrial Revolution and the Enlightenment. Ramos goes on to evangelize the need to develop a “Seventh Sense”, the ability “to look at any object and see the way in which it is changed by connection” in order to survive and thrive amidst the change. Ramos, along with recent books by Reid Hoffman and great thinking by the team at a16z represent some of the most helpful and cogent thinking on networks and network effects.

I believe we need a new and more holistic approach to develop modern communities – communities that are a significant evolution of the current support and Q&A-based silos. In my own practice I’ve begun to refer to the skills and methodologies for designing modern social networks and communities as “Network Thinking”, and I’ve begun to tag related research and writing as #FoN, or “Future of Networks”. To stay up to date, subscribe to my newsletter here.

I’m currently working with a select list of clients to build modern community and network strategies. If you would like to schedule some time to talk about how I can help, bill@structure3c.com.

Purpose Will Power Future Online Communities

IMG_0097

Purpose
“…people’s identification of, and intention to pursue, particular highly valued, overarching life goals.” (Steger & Dik, 2010).

a.k.a. “Your reason for getting up in the morning.”
Bryan Dik PhD – Professor of Psychology at Colorado State & Cofounder of Jobzology

The Fine Line Between Engagement & Manipulation

Growthhacking, gamification, content snacks and personalization. Your feed is overflowing with tricks, hacks and best practices to “drive engagement”. The best of these techniques tap into a member’s intrinsic motivation to trigger participation, the worst rely on psychological tricks and negative emotional responses.

What if there was a way to create sustained engagement in communities and collaborative experiences that harnessed genuine motivation and strove for positive outcomes for participants? Through my work as a Fellow with Life Reimagined, I have (with my team of Fellows) developed an approach that taps into the power of purpose to drive community engagement.

Purpose-Driven Communities

As Community Architects (and Builders, Managers, Hosts, etc), we’ve always known that we needed to define a community’s purpose as part of strategic development, but we generally haven’t paid much attention to the role of purpose for community participants. Tactical goals in the context of a community experience, yes. Thinking about the community member as a “whole person” with a life beyond your community? Let’s be honest – rarely.

Our community experiences today are largely designed around the limitations of the platform we choose to grow our communities on. Content (posts and messages) is typically the most dynamic element, followed by algorithmically-driven “streams”. Reputation elements develop over time and are helpful to make judgements about the value of content and contributors, but it is hard to say any given community experience truly evolves.  On the whole, the Community experiences are surprisingly static.

There is opportunity for improvement here. Looking at Communities through the lens of Maslow’s Hierarchy of Needs, you can make a case that online communities support many of the needs that Abraham Maslow describes in his model, especially 1.) Belonging (through social connections), and 2.) Esteem (through participation and the advancement through reputation system). The missing ingredient has been the proverbial top of the pyramid: Self-Actualization.

What might happen if the community and collaborative experiences we designed supported the discovery, refinement and actualization of a person’s purpose?

 

Screen Shot 2016-05-09 at 3.32.29 PMNext, think about what a community might look like if the host organization was actively refining and expressing its purpose through community interactions. As an example: If a software company’s purpose is to empower the world through digital design software, you could imagine community activities going well beyond break/ fix support forums and into eduction, skills mentoring and specific efforts to reach people in the developing world and the associated technological challenges. The host organization evolves from an authoritarian role to become a responsive partner in co-development.

Early Development of the Purpose Model – In Flight Now

In November of 2015, I was honored to be chosen as part of the inaugural Rand Fellows with the Life Reimagined Institute.  I was asked to be team leader and had the opportunity to work with Bryan Dik, Brooke Erol and Roberta Taylor on my team. Our team was mentored by an amazing group of thought leaders, including Richard Leider, Alan Weber (co-founder of Fast Company) and Dr. Janet Taylor. The goal of my team was to create community-based programs that help people discover, refine and express their purpose. My team of fellows is in the middle of a pilot and research project that lasts through the end of July to study the best ways to help our community of participants discover, refine and express purpose through their work. Our team took the Life Reimagined process (shown in the graphic below) and mapped community activities to each stage to come up with the needed content and features for our pilot community program.

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Meaningful Results Beyond Engagement

One of the most incredible outcomes of our pilot program was that we saw significant improvement in 12 of 20 psychosocial variables that we measured in our participants. Specifically, we saw large gains in feelings of Happiness, Resilience, Presence of Meaning, and Career Decision Self-Efficacy. We also saw reductions in feelings of Loneliness and Depression in participants.

screen-shot-2016-11-23-at-8-57-32-am

Implications

We are in the early days of developing a model for Purpose-Driven Communities but we are already seeing impactful results from our studies. The Purpose-based model I’ve described doesn’t exist in the wild (yet), but the time to consider the implications and possibilities is now if you want your organization’s community to evolve beyond static growth, low engagement and specious results & impact . There are many positive and disruptive implications of the model – I’ve highlighted a few below.

  1. Shared Purpose of Community 
    • Hosts will have to clearly state the purpose of their community, as well as help individual community members define, refine and express their purpose in the community experience. The development of a “Purpose Model” is required.
  2. Purpose Expressed in Community Leadership and Actions (Member)
    • Once the “Purpose Model” is created, more effective Member journeys, reputation and roles can be developed that align near term activities with longer-term accomplishments.
  3. Evolving Role of Community Manager
    • Once the language of Purpose is understood in a community, and once members and hosts can share their purpose (via statements / profile), the Community Manager can play a critical role of connecting members with the content, people and activities they need to actualize the member’s purpose.
  4. A New System of Context & Feedback Loops (Platform)
    • New tools will need to be developed to facilitate purpose discovery, and to drive the community experience through context (activity streams, member matching & networking, journey models)  and feedback loops (based on activity).
  5. Federated Communities
    • The expression of an individual’s purpose is a large and complex topic. It is unlikely that any one community or organization can fully support the breadth of an individual’s need. Complimentary communities have an opportunity to partner around customer types and segments to offer experiences that support purpose. We will begin to see examples of Federated Communities as an alternative to mass social networks in the next 12-24. Powering these Community Federations with Purpose will be a game changer.

In Summary

Creating a Purpose-driven model for communities will be a break through in performance, engagement and impact for many organizations. This new model will create the canvas for life-long relationships that are based on mutually beneficial outcomes for the host and member. Community platforms, programs and roles will need to evolve to realize the full value of the model.

About Structure3C
I will continue to research and write about the Purpose-driven Community Model as part of my ongoing #NetworkThinking series. To stay up to date, subscribe to my newsletter here.

I’m currently working a select list of clients to build amazing communities. If you would like to schedule some time to talk about how I can help, bill@structure3c.com.

 

 

The Secret Ingredient for Customer Lifecycle Marketing? Community Management.

A recent benchmarking report from Demand Metric on Customer Lifecycle Marketing illustrates the impact of aligning marketing efforts around a customer journey model. The report also illustrates a number of blindspots that are derailing Customer Lifecycle Marketing efforts.

The missing ingredient? Community Management.

First, highlights from the report (direct quote):

The analysis of this study’s data provides these key findings:

  • The study found that less than 20% of organizations are currently marketing across the entire customer lifecycle.
  • Participants spend twice as much of their marketing budgets on acquiring new customers as on retaining existing ones. (Yet most of their revenue comes from existing customers!)
  • Almost 90% of the study participants indicate that marketing currently owns the understanding and management of the customer lifecycle.
  • Of the lifecycle stages – Awareness, Consideration, Purchase, Retention and Advocacy – Awareness enjoys the greatest clarity of ownership, with marketing owning the stage 88% of the time. Retention is most fragmented, with few organizations defining clear ownership of this stage.
  • The Awareness and Consideration stages enjoy “adequate” or “ample” levels of investment for over 70% of study participants. Retention and Advocacy both fall at the “minimal” to “none” level of funding for 55% of study participants.
  • The greatest benefit to executing a customer lifecycle marketing strategy is greater customer engagement.
  • The greatest challenge to marketing across the customer lifecycle is understanding customer content needs.
  • 72% of strategy adherents are experiencing a revenue lift from customer lifecycle marketing.
  • Over three-fourths of participants plan to increase their commitment to and investment in customer lifecycle marketing.

PardotDemandMetric-Marketing-Effectiveness-by-Journey-Stage-Dec2015

Excellent summary graph from MarketingCharts.com

Clearly Customer Lifecycle Marketing is incredibly valuable when all stages of the lifecycle are addressed. So what is the problem? Based on my direct experience and years of studying the intersection of marketing and online community, I would assert that building meaningful relationships at scale is still an undeveloped function in the majority of most organizations. Further, as the data from the report shows, the “ownership” for customer retention is scattered among many departments. Add to the mix the eternal debate about “who owns social / community” and things get even more messy.

So what is a modern marketing organization to do? Consider three things:

  1. Community Drives Customer Lifecycle
    A modern definition of online communities expands the location of “community” to be any on or offline touchpoint where customers can meet and form relationships. A modern definition also expands the concept of community management to include any form of relationship building and nurturing. Modern online communities produce a range of value for customers and businesses. Peer to peer support is the classic example, yet modern approaches include a range of deep collaboration on new product development to expansive crowdfunding campaigns – and everything in between. Community can play a valuable role in every stage of the customer lifecycle, and can often be the connective tissue to hold the entire experience together.
    Screen Shot 2016-01-07 at 6.03.39 AM
  2. Treat Engagement & Retention as a Community Management Opportunity
    The practice of building and nurturing customer relationships is a job modern community managers understand very well. In particular, Community Managers can be very effective as resources in Customer Nurture campaigns during the consideration phase. I had my community management team at Autodesk reboot a nurture campaign that supported a 30 day product trial, and the results were amazing.

    nurture

    Example Customer Nurture email from a Community Manager

    Further, Customer Advocacy programs grew (at least partially) out of Community Advocate / MVP programs. It is a relatively straightforward process to scale current Advocacy programs to include different customer types. There is also a massive opportunity to harmonize Influencer programs (which typically look outside of existing communities) with Advocacy programs. These are essentially two sides of the same coin – Advocates have typically been nurtured through a hosted community and Influencers have established their own communities and networks. A modern Community Manager treats these contexts as part of the larger community ecosystem.

    Treating engagement and retention as a community management opportunity allows the staff with the skills to manage relationships at scale do what they do best. This is a huge missed opportunity in marketing.

  3. Get Real About Digital Transformation & Social Business
    A modern approach to online community takes into account the entire digital ecosystem, not just single online touchpoints. A modern approach to community management nurtures engagement across the digital ecosystem. So if Community Managers know how to address the key gaps illustrated in the Demand Metric report, what’s the problem? Why isn’t it happening? There are many answers, but one factor that has had a huge negative impact is the trend of Digital Transformation initiatives absorbing (or in some cases, abandoning) Social Business efforts. I expand on (and in some ways, rant about) this in my 2015 recap post. Most Digital Transformation initiatives have focused on technology at the cost of customer engagement. Many Social Leadership teams and organizations have been disbanded or fractured and embedded to the point of being ineffective. Customer Experience initiatives often focus on superficial and in the moment customer engagements at the cost of growing the life long relationship.Bottom Line: We need a new Leadership model that addresses not only the Company : Customer relationship but also the complex network of Customer : Customers :  Company  relationships.

Netting it out:

  • To create successful Customer Lifecycle Marketing initiatives, modern marketers must include online community and community managers.
  • Community Managers can help address the current engagement and retention gaps in Customer Lifecycle Marketing programs.
  •   Organizations need to renew focus and investment in Online Community Leadership to drive growth via Customer Lifecycle Marketing

I am working with a portfolio of clients on evolving their community and marketing programs (lifecycle, influencer & advocacy, community management). I am also kicking off the year by offering a complimentary consultation session (for a limited time & very limited slots). If you would like to get feedback and guidance on your 2016 plans, feel free to register for a consultation here. 

Preview of the Brands & Collaborative Economy Research Project

In March I embarked on a series of qualitative research projects to help organizations prepare for the disruption and opportunity emerging from the Collaborative Economy, and understand what resources they need to be successful. Crowds, Community & CollaborationWave 1 responses are in and the analysis is almost finished. I wanted to share a preview of the results to date. The full set of results will be published in June.

The pool of organizations that completed the survey ranged from Fortune 500 software, media and retail companies to small startups in the sharing economy space. A handful of non-profits also participated.

Key observations:

  1. A shared understanding of the Collaborative Economy is still forming.
  2. The Collaborative Economy is relevant to organizations, but the level of urgency isn’t high (yet).
  3. The most interesting sectors are Learning, Services and Corporate (“Sectors” as described by Crowd Companies Honeycomb model).
  4. Many organizations see online communities, social networks and collaboration platforms as “enablers” and areas to begin experimentation.
1. Shared Meaning & Definitions
Getting to a crisp definition and shared understanding of the Collaborative Economy is challenging because the concept describes the interplay of a number of other large trends and movements, including (but not limited to) the Sharing Economy, Sustainable Development, Digital Transformation, the Maker Movement, Internet of Things, Future of Making Things and more. In the context of this research project, when asked to describe their understanding of the Collaborative Economy, respondents mainly spoke to 3 key themes of the Collaborative Economy as:An economic model…

“A model in which the creation and exchange of value (of goods, services, knowledge, etc) occurs through human interactions versus (solely) financial transactions. Asset allocation is optimized such that resources are jointly consumed and assets rarely stand idle.”

A social movement…

“Where brands and people start thinking more cooperatively for the greater good…instead of competitively & businesses go back to being more sociable and people-focused.”

A technical platform…

“Coordination of mobile devices, cashless payment systems, reliable rating mechanisms to get value from each other as opposed to centralized corporation of assets.”

2. Relevance and Urgency
Most respondents said the Collaborative Economy was either “Somewhat Relevant” or “Very Relevant” both now and through the next 12-18 months. The fact that many respondents gave responses that indicated a relatively low level of urgency was very surprising. It is likely that most organizations:
  • Don’t understand how to formulate a strategy
  • Don’t have the necessary vision, leadership and resources to engage
  • Don’t see a burning platform of missed opportunity or competitive threat
  • Aren’t willing (yet) to make the investments in platforms, partnerships, open collaboration and the making corporate assets available.

The respondents who did indicate a high level of urgency, and had active pilots, were engaging in activities ranging from: investment in or partnership with complimentary startups, development of platforms and marketplaces, evolving existing social business programs, and re-developing the value exchanges of their online communities. These pilot programs will be covered in more detail in the final report.

Relevance and Urgency

 

3. Emerging Sectors
Research participants were asked to rank certain sectors of the Collaborative Economy by level of interest. The sector categories were sourced from the  Crowd Companies Honeycomb model.
emerging_BaCC

 

4. Enablers
Survey participants were asked to rank the following systems, technologies and engagements based upon their perceived value in enabling an organization to engage in the Collaborative Economy.
Enablers_BaCC

 

The full Brands and the Collaborative Economy report will be released in June, going in to further detail on the topics above, as well as:

  • An overview of current pilot programs being conducted by the respondents;
  • Key sources of information and data about the Collaborative Economy;
  • An overview of missing or underdeveloped resources and services needed by organizations for their Collaborative Economy initiatives.

Next Up:
Wave 2 Research begins June 1st.
Wave 2 research will begin the week of June 1st, and will cover:

  • Lessons learned from early successes and failures
  • Organizational resources needed to develop and sustain pilot programs
  • Development of a simple framework for Collaborative Economy pilot programs

If you are interested in participating in the research (via survey), being interviewed or profiled for the report, or sponsoring a future report, please send me an note.

Private Briefings & Advisory Sessions
I am also doing a limited number of private briefings on the Collaborative Economy research and how a modern approach to online communities can support innovation, customer acquisition and retention.
I’m available for online session booking via Popexpert, or feel free to drop me a note.

Dr. Strangeshare or: How I Learned to Stop Worrying and Love the “Collaborative Economy”

dr_strangeloveI have a confession to make: I can become really obsessed with labels.

Back in 2008, when I was producing events and conducting research focused on Online Communities for Forum One, the word “social media” hit broad adoption. I had countless debates with my colleagues about what we should title events and new research initiatives to stay true to the intention and tradition of online community building, while including the emergent activity happening on the mass social networks that were experiencing explosive growth globally. Two years later at Dell, our centralized “Social Business” team was called “SMaC” – Social Media and Community. Many labels in play trying to describe a spectrum of concepts and activities.

Ch-ch-ch Changes
On the one hand, each new term that has been introduced introduced to describe a major shift (virtual community, online community, social media, social business…) signaled a major evolution or change in culture, driven by the twin forces of technology and culture. On the other hand, each change contained so many attributes of the last wave that it was easy to be cynical that it was change in name only, driven by consultants, analysts and authors ready to make a label stick to own a market or concept. What really happened? Honestly, I think a bit of both – as market and cultural forces gained energy, a handful of folks were able to step forward and help make meaning of what was going on and describe what possible future scenarios might come in to play. I created a simple diagram to describe what I personally saw in my career to date:

A Snapshot of the Evolution of Online Communties
(
click for a larger version)

Something’s Happening Here
Which brings us more or less up to date. When I first heard the terms “Sharing Economy” and “Collaborative Economy” hitting mainstream last summer, my immediate reaction was a cynical “here we go again”. But then I started doing research, and listening to some of the smart voices in the field signaling the change. In particular, I found Rachel Botsman’s work very helpful and insightful. Her “The Sharing Economy Lacks a Shared Definition” is an especially good overview. Jeremiah Owyang has done a lot of research and writing in the field as well, and it was his energy and insight that helped me decide to make Autodesk a founding member of his Crowd Companies brand council.

I’m convinced we are entering a new era – one that draws on the collective learning, social technology and cultural evolution to set the stage for the next act in a very long play that the Cluetrain Manifesto described in 1999:

A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies.

I keep coming back to a handful of questions to help frame how the Collaborative Economy will affect my day to day practice:

  • How might this next phase of “social” enable (or force) sustainable and thriving businesses?
  • How can Brand’s fully design and engage an extended community ecosystem – inclusive of all stakeholders (customer, partners & employees), built on shared value?
  • How will reputation play a role as the marketplace becomes a mesh? How can we make data, content and associated reputation all portable across meaningful contexts?
  • How will participation and contribution will be valued, exchanged and incentivized in the near future?
  • What does the future of crowdsroucing and co-innovation really look like?IMHO, early examples, like Dell’s IdeaStorm (I designed the current incarnation) and marketplace’s like Quirky and kickstarter are all part of an interesting but humble beginning.

The net-net: for me, the time for lable-gazing is done. It’s time to learn, experiment and evolve my practice.

I’d love to hear your thoughts.

Updated 3/3/14 @ 11:55am
This morning, Jeremiah Owyang released a new report: Sharing is the New Buying, Winning in the Collaborative Economy – this is the largest study of the Collaborative Economy to date, and an informative read.