Stakeholders already operate in communities; they organize around common interests, issues, needs, experience, geography, or heritage. People turn to trusted members of their communities for advice, validation, ideas, interaction and referrals.

This kinship is the spark that creates a community and drives people to form groups to collaborate, cooperate and innovate. Communities form and dissolve according to the intensity of their common bonds.

Companies today are very interested in helping their stakeholders form communities. And, many stakeholders are interested in forming and participating in these communities.

Why is community so important?

For the company, it takes the stakeholder relationship beyond transactions and elevates it to engagement. Communities increase loyalty and result in a powerful peer-to-peer marketing channel. They also provide a real-time read of market dynamics, product, service and support quality, and other factors that can lead to more efficient go-to market strategies, better margins, enhanced product development processes and increased sales.

For the community member, it reinforces their passion or bond with the brand. It reinforces their role as an “insider” and provides a way for them to interact with others of similar interests or needs.