A Sense of Belonging: The Rise of Product-Led Communities and the Inside Story of Facebook Marketplace

A Sense of Belonging: The Rise of Product-Led Communities and the Inside Story of Facebook Marketplace

For over 40,000 years, human beings have lived in communities that were determined by geographical constraints. However, with the advent of mobile phones and the internet, our communities have expanded to include people from all over the world. This global connectivity has brought about unprecedented access to knowledge, markets, opportunities, and most importantly, people.

In the past, people were born into a community and had to find their place as individuals. Now, individuals are born and must seek out their own community. This shift has led to the rise of product-led communities, which revolve around a specific product or service that helps people achieve a valuable future outcome. As traditional forms of belief and belonging, such as religion, wane in popularity, people are searching for alternative ways to find a sense of purpose and connection.

One notable trend among younger generations is a decrease in volunteering and participation in civic organizations. In 2017, only 28% of millennials volunteered, compared to over 35% of baby boomers and Gen Xers. Instead, young people are more comfortable forging relationships online. They are open to forming online-only or online-first connections, seeking genuine connections and a sense of belonging in the digital space.

Furthermore, today's consumers are increasingly interested in supporting brands that align with their values and take a stand on social issues. They want to buy from companies that share their sense of purpose and actively contribute to causes they care about. This shift in consumer behavior has forced brands to rethink their advertising strategies and focus on creating authentic communities that foster trust, safety, and a sense of belonging.

The success story of Facebook Marketplace provides valuable insights into the power of community and trust in driving commerce. Five years after its launch, the Marketplace Tab on Facebook boasts over a billion monthly active users, surpassing the combined user base of Snapchat and Twitter. However, the initial idea for Facebook Marketplace came from a blind spot in Western markets, where buying and selling within groups was not as common.

The team behind Facebook Marketplace recognized that children generate a significant amount of used goods, many of which are expensive to buy new. Additionally, in certain Asian markets, buying and selling within groups held great meaning and significance. With these insights, they decided to create a way for group admins to turn their groups into classified commerce groups, allowing them to track organic behaviors and rank group content for better product discoverability.

To ensure trust within the platform, Facebook Marketplace focused on face-to-face transactions and the importance of real identities. Buyers and sellers felt more comfortable knowing the real identities of the people they were dealing with, as well as their duration on the Facebook platform. This emphasis on trust and transparency set Facebook Marketplace apart from anonymous platforms and contributed to its success.

Integration with Facebook Messenger also played a crucial role in the growth of Facebook Marketplace. The ability to communicate quickly and easily through Messenger allowed users to coordinate transactions, pin locations for meet-ups, and send deposits securely. This integration streamlined the buying and selling process, further enhancing the user experience.

Another key aspect of Facebook Marketplace's success was leveraging the power of the Groups community. The idea of people-powered commerce, buying from neighbors, and reducing waste resonated with users. Mutual friends and a long history on Facebook provided a sense of confidence and trust, whether it was finding a roommate or purchasing a car from a stranger.

Reflecting on the journey of Facebook Marketplace, three actionable pieces of advice emerge:

• 1. Follow the data: By closely monitoring user behavior and iterating based on data insights, Facebook Marketplace was able to evolve and meet users' needs. This data-driven approach is crucial for any product or service looking to thrive in a competitive market.

• 2. Device matters: While Facebook Marketplace initially focused on mobile users, they realized the importance of adding a desktop version to cater to larger purchases and make listing easier for high-volume sellers. Considering different devices and platforms is essential for reaching a wider audience and maximizing user convenience.

• 3. Navigating scaling: As Facebook Marketplace grew in popularity, it faced challenges related to violations and transaction measurement. Encouraging buyers and sellers to report transactions through incentivized ratings and reviews was an effective way to address these issues. Finding creative solutions to navigate scaling is crucial for maintaining the integrity and trustworthiness of a platform.

In conclusion, the rise of product-led communities and the success story of Facebook Marketplace highlight the importance of trust, authenticity, and belonging in today's digital landscape. Consumers are seeking meaningful connections and purpose-driven experiences, both online and offline. Brands and platforms that prioritize building authentic communities and fostering trust will be well-positioned to thrive in this evolving landscape. By following the data, considering different devices, and effectively navigating scaling challenges, businesses can create valuable and impactful experiences for their users.