Brand-based online communities

A burgeoning number of brands are establishing consumer-centric online communities. A January 2012 University of Michigan study suggested that consumers spend, on average, 19% more after having joined such a brand-based online community.

“After controlling for several factors, the authors found that the quantity and quality of friendly relationships with other customers was key. Customers who had many friendly relationships, or who befriended more important or prominent customers, were likely to spend more on the firm’s products. Those who displayed more products on their profile page also tended to rack up purchases.”

Source: Strategy + Business