"The Power of Community: Measuring ROI and Embracing Unique Content Experiences"

"The Power of Community: Measuring ROI and Embracing Unique Content Experiences"

In today's digital age, businesses are constantly seeking ways to measure the return on investment (ROI) of their various strategies and initiatives. This holds true not only for marketing efforts, but also for community building and engagement. Just as marketing ROI calculations help businesses decide where to allocate their resources, community ROI (CROI) measurement plays a crucial role in determining the value and impact of community investments.

CROI can be defined as the incremental financial value gained from a community investment, subtracted by the cost of that investment, and divided by the cost of the community investment itself. This methodology is similar to measuring sales "pre" and "post" promotion, wherein the goal is to determine the incremental value generated from community-related activities.

One effective way to measure CROI is by analyzing the direct impact of community investments on sales. For example, Atlassian, a leading software company, measures the success of its Atlassian Community Events (ACE) by tracking the number of attendees. They found that 81% of ACE attendees downloaded a free license within 30 days of the event, and 34% made a purchase. This data clearly demonstrates the direct correlation between community engagement and sales.

However, measuring CROI for existing community members can be more nuanced. For subscription-based businesses, it is possible to compare the churn rate between active community members and those who do not participate in the community. By analyzing the difference in churn, businesses can gauge the impact of community engagement on customer retention and loyalty.

Beyond its financial impact, communities also have the potential to drive other important business outcomes. These include increasing the sales pipeline, expanding deal sizes, driving higher product adoption rates, and improving customer support. By leveraging the collective knowledge and expertise of community members, businesses can address customer needs more efficiently and effectively.

It is worth noting that the community function often falls under the purview of the Chief Marketing Officer (CMO). Therefore, measuring CROI is essential for justifying the level of investment in community programs and activities. When the financial impact of a community can be explicitly linked to the business model, it becomes easier to allocate resources appropriately.

In addition to understanding the importance of CROI measurement, businesses should also consider the unique experiences they offer to their audience. One example of a platform that excels in this regard is Flipboard. Designed specifically for tablets, Flipboard provides a visually appealing and intuitive presentation experience. It takes into account the form factor and use case of the device, making content consumption a seamless and enjoyable process.

Flipboard is particularly useful for navigating through large streams of content, such as those found on social media platforms like Twitter and Facebook. By presenting the information in a magazine-style interface, Flipboard helps users filter through the noise and find the content that truly matters to them. This unique content experience aligns perfectly with the industrial design and purpose of tablets, resulting in a more engaging and efficient content consumption process.

In conclusion, measuring the ROI of community investments is crucial for businesses to understand the value and impact of their community programs. By analyzing the incremental financial value gained from community engagement, businesses can make informed decisions about resource allocation. Additionally, embracing unique content experiences, like Flipboard, can enhance user engagement and provide a more seamless content consumption process. To maximize the effectiveness of community initiatives, businesses should focus on increasing sales pipeline, improving product adoption, and providing exceptional customer support. By incorporating these actionable strategies, businesses can harness the power of community and drive sustainable growth.