Acquisition and Retention via Online Communities

March 22nd, 2009

Originally published October 14, 2009

EMarketer recently published research into interactive ROI, and concluded that the primary objectives of online marketers are to aquire and retain new customers.  Now it’s the fall and little has changed.

There are a number of projects, technologies and tactics that can be deployed to drive customer aquisition and retention, and I will be focusing on how publishers and brands can apply their online community platform for this purpose.

While the explicit definition of the terms ‘customer’, ‘acquired’ and ‘retained’ vary across organizations, I consider a new registered website user to be acquired, and a returning registered website participant to be retained.

Top interactive tactics include email and SEO

“For online marketers”, says David Hallerman, eMarketer senior analyst, “search is the most effective tactic for customer acquisition, and e-mail is the most effective for customer retention.”

Below is a breakdown of interactive marketing tactics.  Email is still the weapon of choice, and many of the other tactics are methods to add to the email database.

eMarketer

Niche communities should also be included on this list of tactics for several reasons.

First, they can provide value to existing and potential clients via support forums and knowledge exchange.

Second, these communities, if seeded, supported and nurtured by a community manager, can also reenforce the primary tactics of SEO for acquisition and email for retention.

Acquisition through community SEO

Eric Enge of Search Engine Land writes that “[t]here is the widely held belief in the SEO community that social media will be a major source of ranking signals for the search engines in the future.”

Using search engine optimized web applications that include blogs, commenting, forums and Q&A can build many more pages of relevant content. By enabling and encouraging sharing of that content, and setting up complimentary external social networking pages, you can greatly increase the number of quality, relevant inbound links.  Inbound linking is critical for SEO.

Site Suite has a good article on inbound linking, and Lee Odden describes the 5 Essential Steps to social media SEO success at Mashable.

Inside Facebook also provides an excellent guide to optimizing your actual Facebook fan page for search engines.

Community Managers should actively participate in the conversation, answering questions, and adding additional topical links.  They should quote and link industry blogs, and share community discussions in the comments of those blogs.

Focus on adding value for your audience, and you will grow your community.

Retention through community participation

Community platforms generate branded, direct communications from fellow community members.  Because these messages originate with others in the community, they tend to represent trusted advocacy sources and are less likely to be ignored.

Branded email can be generated by a number of activities:

  • Digest content update (daily, weekly, etc…)
  • Content matching specified interest has been posted
  • Comment made on posted content
  • Comment added to thread
  • Content sent to fellow users
  • Internal message waiting
  • Registration welcome email
  • Friend request or follow notification

Niche communities can also have any number of custom message triggers such as, “UserBob thinks you are funny” or “HandyHardware is interested in building your house”.

Each of these emails could be HTML emails with image branding, commercial calls to action or even banner ads, all in addition to the actual message linking back to the site.

MailerMailer recently published an Email Marketing Metrics Report (summarized by eMarketer.com).  The chapter How Personalization Affects Open and Click Rates states:

“Personalizing the message itself is associated with higher click rates. It is also correlated with higher open rates, though open rates are generally more influenced by the subject line, sender name, and subscribers’ relationship with the sender.”

Community-generated email perfectly provides these elements because the subject is timely and relevant to the user and the sender name can be the familiar community or a fellow member name.

If you have ever received an email from YouTube or Facebook stating that someone has commented on your content, you understand that opening it is irresistible.

UPDATE: EMarketer has just published research, “Top E-Mail Subject Lines Focus on ‘You’”.  It has ‘you/your’ showing up as the number one used word in marketing email subject lines, and ‘welcome’ coming in at #9.  This shows that the naturally personal email that is generated by a community to its members has high value to hosts and sponsors.

How many emails can be expected?

This depends on a wide range of factors including the number of members, nature of the community and level of engagement.

An example is the wildly successful CBC’s Hockey Night in Canada Anthem Challenge that was built and run by Filemobile on the Media Factory platform.  The website logged 90,000 registered users, 80,000 comments, and 35,000 content shares.

That is 205,000 branded messages generated by the community in 90 days (and this assumes only one person saw a social network share message!)

This was not a permanent community, but shows how many messages can be generated by a great campaign.

Community management is key

This point is worth restating.  Active community management is key to acquiring and retaining customers online.

  • Engage users personally and improve the breadth and depth of the conversation
  • Push discussion points and conclusions out to the social web to link people back

The content created by this cycle draws people in via search and keeps them coming back with personal email.

For some great insight on community management, read this series of articles by Dawn Foster at Web Worker Daily.

Online Advertising, Social Media

Subscribing to Artists: Better Band Relationships

February 24th, 2009

Last year, we were talking to a record label about how they could use our social media platform Media Factory to better engage fans and maybe make money again.

My gut feeling then was that the future of artist-fan relationships was in a personal subscription model. As part of my research, I joined Take This Oath, the Killswitch Engage fan club. There was no way to preview the content of the fan club site, but for $30/year I got a “free” tshirt and access to exclusive content. I was pretty disappointed to find 2 videos (not even all their videos available on their own main band site) and one blog post.

Recently, we have seen several new instances of labels letting Apple innovate for them, both in the space of artist subscriptions.

First was the self-release of the Presidents of the United States of America discography as an iphone app for $3.75CDN.

On the good side is the idea that The Presidents can send blog updates, exclusive content, concert dates, etc to their fans.

On the terrible side is the fact that you can only access the music on your iphone and only via that application! Nope, can’t get those tunes in iTunes. Add to that you can only stream the music, and we have a loser on your hands (especially if you are Canadian and don’t get all-you-can-eat data for your iPhone).

Even more recently is the launch of iTunes Pass. Basically, this a super-fancy podcast behind a transaction. Again, I think the idea of subscribing to a band is an excellent one, but this feels a bit too little, too late. Currently, there is only band, Depeche Mode (egads) offering this service, with surely more to follow if this does anything other than tank.

If I was still in a band, this is what I would do:

  • Hire a very outgoing, super-fan friend to be your manager.
  • Setup a decent, non-Flash site
  • Sell fan club memberships for $10 per year
  • Put everything ever recorded, shot on video or photo on the site
  • In the case of KSE present a genealogy of all the bands the members have ever played in, post all media you have of these bands and links to their fan club sites
  • Encourage fans at every show to upload their pictures and video to the fan site
  • Have monthly contests for best fan media (club members only)
  • Have a video contest where the winner becomes your documentarian for the next tour (club members only)
  • Have that guy post a video once per day
  • Use fan club data and tools like Demand to find out where you should tour
  • Release a whole album of songs LAST.  Record one song every month or so, crowd-source feedback, post tracks to mix, post in-studio video.
  • Pick the best 8 tracks, get them mixed by a pro and release in all formats.
  • Package it with a cut DVD of all the stuff from the last year
  • Make the regular content available via podcast
  • Put the regular content on YouTube
  • Don’t make a recording deal with a major
  • If the major is LiveNation, disregard the last bullet and make a deal

Digital Music, Media Technology , ,

Apple Previews Support for Legacy Systems

February 21st, 2009

As Windows 7 approaches, people who were holding off upgrading can look at a new PC or a new Mac before retiring their Windows 95 boxes.

Apple intends to court these baby-boomer shoppers by offering support for their current peripherals.  The new Mac Mini will have PS2 ports for mouse and keyboard, an SVGA port, and even an LPT and serial port.  This picture was leaked from Cupertino:

Legacy Support for Mac Mini

Lighter Side , ,

25GB of Free Online Storage from MS SkyDrive

February 21st, 2009

I finally got around to setting up my profile in Microsoft’s Live Spaces, and found SkyDrive.

Besides being pretty impressed with the interface and user experience, I get 25GB of free storage.

SkyDrive

Media Technology, Social Networking , ,

How I accidentally started a Facebook community…

February 20th, 2009

After going through the process of installing Sociable’s Facebook Connect plugin into this wordpress blog, I have created a Facebook page that has all the bells and whistles of a full (if basic) presence.

Check it out here.

I think that is cool.  Check out the message targeting I have now:

Messaging Members via Facebook

I can also set up some ads in a few clicks…

Create a Facebook Ad

Even my favourite: social ads!

Social Media , ,