Customer Retention Strategies and the Power of Brand Communities (the automotive edit)

In 2017, we issued our very first white paper on the Power of Brand Communities which looked at brand communities as a customer retention strategy.

This report outlined consumers' attitudes towards brand community, loyalty and communications, indicating a connection between community and commerce with 58% of consumers aged 25 to 34 saying they’d be likely to spend more money on products and services if they were part of its community.

But a lot can happen in three years – particularly online – and so we decided to see whether the notion was still valid in 2020 and whether it was valuable in particular for the automotive industry which has often showed a propensity for such initiatives through its membership clubs.

The results were fascinating and proved the value of brand community as key in generating customer loyalty and driving repeat customers.

Highlights include…

  • 50% of digital natives (the 16 to 24-year-old age group) are members of at least one brand community
  • This demographic value early access to price promotions, special offers or sales (31%)
  • Key for them also are experiences and content that help them understand the brand; 27% want exclusive content and 22% exclusive experiences
  • Key metrics of community success for marketers were likes, comments and shares (41%) but also an increase on repeat customers (39%) and lifetime value of customers (39%)
  • 45% of consumers say they have shared content from or liked a brand in the past 12 months
  • 79% have discussed a brand they like with friends in the same period
  • 37% would defend a brand on or offline (rising to 57% of 16 to 24-year-olds) if part of a community

Not only are brand communities of commercial value for companies looking to connect with the repeat customer but they are key in driving acquisition through brand building and word of mouth.

Our report showcases brand community examples, current attitudes towards brand communities, what actions members take when part of a community and how consumers like to be incentivised.

The Communities Report is the ultimate white paper in guiding you to understand, set up and get the most out of brand communities.

Download: The Power of Brand Communities report

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