What’s the real cost of not having a community?

Customer loyalty used to be critical to companies before lead generation became so easy and “cheap.”
But while company ad spend for lead generation is now in the millions, customer loyalty spend is nowhere near that, and this approach is costly to brands on multiple levels.

Increased Revenue

Acquiring new customers can cost 5x more than retaining existing ones.

Higher churn rate

When you don’t give customers a reason to be loyal, it’s easy for them to switch whenever they see a better offer.

You have to re-sell the customer again and again

Few customers mature into brand ambassadors and early-adopters if there is no regular communication with the brand.

You might have lots of orders, but likely hood is your order-size

Loyalty = trust = bigger basket size.

Sketchy social listening

When you have a clear message, your community will give you clear responses.
If your customers aren’t clear what you stand for, all you will hear is noise.

People are getting tired of being sold to

We’ve already seen people getting ad fatigue and actually paying for software to turn ads off.

Imagine your business as a house

  • Your paid advertising strategy is getting everyone to your front door.
  • But with nothing interesting to say, you lose most people out the back door.
  • Our team loves to keep people entertained in the kitchen.
  • Because we know that engaged communities result in referrals, loyalty, brand ambassadors, early adopters of new products, and social shares.

Task for today

  • Look at your digital communities and think about how you can measure engagement.
  • Maybe it’s through surveys, website traffic, search volume data, or comments divided by followers on social.
  • Give yourself a goal to increase engagement by X % this year.


Let us know what you think in the comments, on our social media channels, or message us here. You can also share the articles in your community and start your own conversation by clicking the share links below.

Published by CHAI Digital

CHAI Digital helps companies build impactful digital communities through storytelling.

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