Your online community wasn’t a whim. You didn’t buy, implement, and grow it for no reason. You did it to make a positive impact on your business. And chances are you’ve been successful.
But have you used business metrics to prove that success?
The Difference Between Vibrancy Metrics and Business Impact Metrics
The most common online community metrics we see are vibrancy metrics like the number of discussion posts published, blogs viewed, and emails sent – all things that are essential for a healthy community. They illustrate how you’re growing customer engagement and getting people more involved in your brand.
But while vibrancy metrics are a major part of how and why your community is successful, they don’t show business impact.
For business impact, you need to use metrics that are aligned with high-level business goals like increasing retention and revenue. In many cases, it means you need to look directly at those metrics and determine how your community is influencing them.
How to Calculate the Business Impact of Your Online Community
The first step in calculating business impact is to identify which business goals you want your community to impact. For instance, your community’s top business goal may be to increase customer retention. That’s the business impact metric you need to look at.
You can show how your community is impacting customer retention in two ways:
- Compare your company’s customer retention rate from before the community to the rate after the community
- Compare the retention rate for customers who are active in the community with the retention rate of customers who are not active in the community
Both methods show how your community has changed core business metrics and helped you meet your goals. That’s the key to calculating business impact: don’t show just current numbers, present the difference between business metrics with the community and without the community.
Are you presenting that comparison to your team today?
7 Business Impact Metrics and the Formulas You Need to Calculate Them
Finding business impact isn’t always easy. It often requires company-wide data from different departments and calculations that community professionals may not be intimately familiar with. To make calculating business impact easier for you, we put together and eBook with seven key business impact metrics and the formulas you need to calculate them.
In the eBook, you’ll not only get formulas for calculating business metrics, you’ll also find more information on how to identify the business impact metrics that are important to your company as well as where to get the data to calculate those metrics.How to Calculate the Business Impact of Your Online Community includes formulas for calculating:
- New customer acquisition and customer acquisition cost (CAC)
- Customer retention rate
- Customer support costs
- Customer satisfaction scores
- Product and service innovation
- Break-even point
Each of these metrics should be presented as a comparison to show how your community has changed your company’s results. To make the biggest impression, present them alongside vibrancy metrics and qualitative data, such as testimonials, from your customers.
To get the full explanation and formulas for these business metrics and tips for calculating them, download your free eBook now.