Online Brand Communities: Advantages & Challenges

This is our third and final installment of the online brand community series. If you haven’t already, read the first two posts, Understand What Drives Customers and Outcomes & Results.

Continuing with our closer look at the paper titled Managing Brands and Customer Engagement in Online Brand Communities published in the Journal of Service Management, we’ll now examine the advantages, challenges and goals of engaging customers online.


How do your customers find you? Online? Obviously.

Rarely do I make a purchase without doing a bit of research online.

  • Can I find it cheaper?
  • What did others think of the purchase?
  • Are there alternatives?
  • Does the company utilize ethical business practices?
  • Is customer support responsive?

There a lot of questions to be asked!

Anticipating that your customers are going to seek answers online, you should use every tool you have to meet them in that space.

Now, once they find your online presence, are your customers compelled to stay? That’s up to you.

Building and managing an online brand community gives you and your customers a level ground to meet each other’s needs. After you’ve determined what your customers are seeking, you can create an online interface to attract, please, and keep your customers interested and returning.

But successful online brand communities are not easy to achieve. Many challenges exist in the initial set up and along the road. However, these challenges should not be a deterrent and are quickly outweighed by the numerous advantages of engaging your customers.

Advantages for your business

Once you have an active customer base engaging in your online brand community, you will have instant and continuous feedback. This invaluable market research can assist you and your team in choosing where you allocate human and capital resources, how you update and improve your product, and what products you develop for the future.

Research also shows that online brand communities cause companies to have better cross-department collaboration. Open and public comments can be seen by the entire company and make it easier for the technical and sales team members to hear the voice of the customers and develop cohesive strategies.

Online brand communities also strengthen the brand itself, giving the brand a face, a shape, and a story. This gives your customers the opportunity to associate your company with more than just the purchased item. The community breathes life into the company’s brand.

But why is any of this important?

It drives sales.

Again and again the study shows that an online brand community can influence sales by having a “positive impact on immediate purchase intention” and “retaining both experienced and novice consumers”.

Challenges of managing an online brand community

The dreaded bad review, unrelated negative comment thread, or vacant participation altogether…

Remember when I said that the community breathes life into the brand? Well sometimes that community can spit on the brand too.

Don’t be fooled into thinking that it’s all sunshine and rainbows. Managing an online brand community means you’ll also have to manage the challenges that come with an open and public forum.

Here’s what to look out for:

Anti-brand comments and anti-brand communities

Someone will be dissatisfied and someone dissatisfied will get online and write about it. This could be directly on your site, on social media, or in extreme cases a site created just to be anti-your-brand.

Negative associations

I used to live in Washington, DC. During tourist seasons the city became bloated with slow-walking people crowding the sidewalks and metro. Even though I wanted to sternly tell the high school class, group of seniors, family of five with two strollers, whatever, to leave room for those of us trying to get to work, I couldn’t bring myself to ruin what could be those individuals only time to see their country’s Capitol. I would imagine someone’s memory of looking upon the Washington Monument being interrupted by my impatient words – and that wasn’t an association I wanted for my city.

But not everyone on the internet is as nice as I am to tourists.

Whatever content is floating around in your online brand community will be associated with your brand. Moderating your community is tricky. Moderate too much, and it looks like biased censorship. Moderate too little, and the brand could quickly become less than family friendly.

Allocating resources

Even with SaaS companies and free lancers ready to lend a hand (for a price), pulling off a polished online brand community takes a lot of time and effort.

Quality is a large component of any successful online brand community, and quality doesn’t come easily. You’ll need to make sure every effort has the resources to be done properly, which limits how much you can achieve.

Engaging consumers (who have plenty of distractions)

Without some sort of stake in the matter, consumers are not likely to engage. Online brand communities perform better when there is a sense of “co-ownership” between the consumers and the company.

Achieve this sense of “co-ownership” occurs when there is a mutual relationship between the company and the customer to nurture and grow the brand.

Let me put it this way: your customers will not be invested in the online brand community that only asks them to leave comments on a coupon.

Instead you should find innovative ways to ask for their participation and make their participation mean something.

Don’t be discouraged

Every time I have complained to my grandfather about how hard something was (piano lessons were a big one for me) he would say “If it were easy, I’d be able to do it.”

The benefits of managing an online brand community far outweigh the effort it takes to overcome the challenges. Facing and overcoming these challenges is what can set you apart from your competition.

But you don’t have to take my word for it. Look at the research.

RumbleTalk for your community

I took an interest in this research because at RumbleTalk, we are all about online brand communities. This is the whole reasons our company exists.

I’m always impressed with the creative ways companies use group chats to build their community and improve their brand. We’ve seen our group chats used in numerous fields from churches to financial traders and everything in between.

We provide a community building tool, for more information check out our homepage here.

Let me know in the comments what you think of the research, how it applies to your online presence. I’m listening.

Does your business have multiple audiences?

Online businesses can improve community engagement by identifying and interacting with specific audiences visiting their website.

It’s not hard to understand that businesses have different types of customers, but far too often our online community is treated as one homogeneous group.

CHANCES ARE YOU HAVE MULTIPLE AUDIENCES

Think of who you expect to visit your website. Depending on the type of website you are managing, be it a promotional website for a product or service, a special interest blog, or a community center for dispersing updates and information, you are likely to have multiple audiences.

With few exceptions, your website will at least have new visitors and returning visitors. The wants and needs of these two groups can be drastically different. A new visitor is typically looking through a narrow lens to determine if the website is worth their time. They need obvious information quickly and efficiently. A returning visitor has already established trust with your brand and is likely to browse greater amounts of content.

And there can definitely be more audiences than that!

Many websites regarding professions will give general information about their subject for casual browsers and more technical information for those in that profession who use the site as a resource.

This model is also used for special interest sites are more.

dog website
Your website could be for dogs and for dog lovers. This is an example of multiple audiences.

Consider a website for dog lovers. There are people who want information on training their dog to sit, and people who want information on how to enter their dog for an agility show. Both love dogs and would enjoy pictures of cute dogs or dogs doing funny things.

However, without identifying the differences in the dog loving audience some visitors would be bored of rudimentary information and others would leave if the information was beyond the scope of their interest.

MULTIPLE AUDIENCES ARE GOOD FOR GROWTH

Engaging multiple audiences in one platform can be a challenge.

Ignoring these differences, even the best scenario only generates a fraction of the engagement the site could have if the two groups were able to engage in ways fit for them.

If you are trying to increase your website’s engagement, which I think we all are trying to do, consider categorizing your audience and communicating to specific groups as a top level priority.

Your online community is made up of real people, not just numbers. Ask yourself or your team who you are trying to reach.

  • What do your visitors want the first time they visit your site compared to the 100th?
  • What do field experts want compared to novices?
  • What does your website offer to engage other business owners to collaborate?
  • What “levels” of participation are recognized in the design of your website?

All of these are good places to start, but every website is different and so should be the categorization of your visitors.

 

WHAT WE DO FOR MULTIPLE AUDIENCES AT RUMBLETALK

multiple audiences
Some pegs are red, some pegs are yellow and some pegs are blue.

At RumbleTalk, we recognize our product is for business owners and online communities. However, not all visitors will fit this profile and we want to leave them with a good impression too.

For new visitors (including those that are unlikely customers) we focus on making our landing page easy to understand and memorable so that even if that one person doesn’t buy our service they are likely to recommend someone who may.

For our customers, we work hard to make our product user friendly and are constantly upgrading our technology to be more effective.

But wait, that’s not all! We’ve also designed our product to tackle this issue for our customers.

RumbleTalk chats have many great features, and among them is the ability to operate multiple chats on one website.

We understand that some websites face outward and seek open and public community building. Other websites face inward and offer community discussion as an exclusive benefit. Your website may be an umbrella for several topics, and need issue-specific communication.

RumbleTalk chats are capable of providing separate spaces for multiple audiences simultaneously.

Integrating one or multiple chats into your website may be the answer to meet the needs of your specific and separate audiences.

The first step is determining if you have multiple audiences. After that, we are here to help you create and engage with your customers.

THANKS

Thank you for reading and if you have a moment, let us know what you think.

Trade Chat Platform is an Indispensable Tool for Online Traders

Updated on Apr 2017

Financial trading is a business that requires an abundance of information. This article tries to detail the role Trade chat is taking in this times.

A trader should be equipped with data and information in order to make the right decision at the right time.

Regardless of what market the trade is done, whether it is the stock market, futures, currencies or commodities, it suffices to say data and information are the ammunition for successful financial trading.

Two recent trends in financial trading are community trading and algorithm trading or algo-trading. They are similar in that both use automated tools for their trading activities. The difference is in the people involved in those types of trading.

Community trading relies on groups of people sharing information, while algo-trading relies on complex mathematical formulas. Regardless both of them use trade chat because both of them requires an extensive amount of communication.

RumbleTalk a trade chat platform
Add technical graphs to your social trade chat

Community trading and trade chat

Community trading is a trading activity that engages a community to share data and information in a close group or circle.

In financial trading, the terms used to define the trading activity is called social trading. Social trading uses trade chat rooms and online forums heavily as their communication method. Investors, brokers, and traders communicate with trade chat to share information, share tips and tricks, and exchange trading strategy. In a more advanced form of social trading, members of a community can copy trading positions from a respected and renowned trader.

In a more advanced form of social trading, members of a community can copy trading positions from a respected and renowned trader.

This community trading has also spread to marketplaces other than the financial market. Communities formed of people with same interest are often engaged in trading activities among members. Although such a community is not targeted to be a trading community in the first place, as the community grows, the members of the community start to exchange their collections or sell their vintage collections.

This is when trading in the community begins and this is the time the trade chat will become an indispensable tool for the community.

Communities such as a manga or comic communities, gaming, music fans, and action figure communities are the ones that often integrate trading activity into their communities. These types of communities are heavy users of chat rooms and forums and as the community grows in community trading, trade chat usage becomes imminent.

Trade chat for algo-trading

Algo-trading is automated trading. Often called black-box trading, due to heavy reliance of computer, it is a form of trading that depend on computers that are programmed to follow a defined set of instructions for placing a trade in order to generate profits. The aim of using computers is to increase the speed and frequency of trading that is impossible for a human to do.

However, algo-trading has a high possibility to administer a high-frequency trading which exposes high risk and is considered controversial.

As trading positions are generated by complex mathematical algorithms, the potential of algo-trading to entrap high-frequency trading is opened.

This is because algo-trading uses computer analysis to predict a market movement using a set of complex mathematical formulas. Based on the instructions in the formula, when a certain event occurs the computer will execute a trading position.

During a high volatility market, such as what happened last week the global financial market, computers might execute excessive trading position resulting in high-frequency trades.

This is because algo-trading uses computer analysis to predict a market movement using a set of complex mathematical formulas. Based on the instructions in the formula, when a certain event occurs the computer will execute a trading position.

During a high volatility market, such as what happened last week the global financial market, computers might execute excessive trading position resulting in high-frequency trades.

Although market regulators have not declared high-frequency trading to be illegal the activity has been under scrutiny by financial authorities around the world. There are some cases in which violations occurred due to a computer decision to make a trading position such as the May 2010 Flash Crash in the Dow Jones Industrial Average.

One case of insider trading in September 2013 on the Chicago futures market occurred when a decision made by the Federal Reserve was executed by a trader in the Chicago futures market in just 2 milliseconds while someone who stood by at Washington after the announcement would have taken more than 3 milliseconds to inform traders in Chicago using a trade chat. That is a strong indication of algo-trading.

The last case was in January 2015, when exchange operators were fined by the SEC for revealing order types enabling algo-trader to execute high-frequency trading before other traders.

Trade chat in hybrid community and algo-trading

In an advanced form of social and community trading with a copy trading method,  there also is  a new type of trading. This is a hybrid trading, formed as a combination of community and algo-trading.

This method is called copy trading. Usually, the method is used in a trading community when a renowned trader is used as a barometer and algo-trading is employed consecutively by members of the trading community. Actually, this is the type of trading that is most prone to high-frequency trading since computers can copy other positions and execute the same strategy without communication between traders.

Trade chat is needed in this hybrid trading in order to inform all members of the community to stop trading before they engage in risky high-frequency trading.

Get your own chat room