{"id":758,"date":"2024-07-12T13:59:07","date_gmt":"2024-07-12T13:59:07","guid":{"rendered":"https:\/\/bellmarketingsolutions.com\/index.php\/2024\/07\/12\/how-to-prove-the-roi-of-community-management-according-to-experts\/"},"modified":"2024-07-12T13:59:07","modified_gmt":"2024-07-12T13:59:07","slug":"how-to-prove-the-roi-of-community-management-according-to-experts","status":"publish","type":"post","link":"https:\/\/bellmarketingsolutions.com\/index.php\/2024\/07\/12\/how-to-prove-the-roi-of-community-management-according-to-experts\/","title":{"rendered":"How to Prove the ROI of Community Management (According to Experts)"},"content":{"rendered":"<div class=\"hs-featured-image-wrapper\">\n <a href=\"https:\/\/blog.hubspot.com\/marketing\/community-management-roi\" title=\"\" class=\"hs-featured-image-link\"> <img decoding=\"async\" src=\"https:\/\/www.hubspot.com\/hubfs\/community-management-roi.webp\" alt=\"Community manager shaking hands with a stakeholder, flanked by images representing ROI reports\" class=\"hs-featured-image\" style=\"width:auto !important;max-width:50%;float:left;margin:0 15px 15px 0\"> <\/a>\n<\/div>\n<p>In a perfect world, my car would run on starlight and dreams, fries would taste good reheated, and we would never be asked to prove the ROI of community management.<\/p>\n<p>In a perfect world, my car would run on starlight and dreams, fries would taste good reheated, and we would never be asked to prove the ROI of community management.<\/p>\n<p><a class=\"cta_button\" href=\"https:\/\/www.hubspot.com\/cs\/ci\/?pg=866a5201-b39e-4edb-9e7f-65c0d98a9ea0&amp;pid=53&amp;ecid=&amp;hseid=&amp;hsic=\"><img decoding=\"async\" class=\"hs-cta-img \" style=\"height: auto !important;width: auto !important;max-width: 100% !important;border-width: 0px;margin: 0 auto;margin-top: 20px;margin-bottom: 20px\" alt=\"Download Now: 3 Community Management Templates [Free Kit]\" height=\"59\" width=\"567\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/53\/866a5201-b39e-4edb-9e7f-65c0d98a9ea0.png\" align=\"middle\"><\/a><\/p>\n<p>Unfortunately, that\u2019s not the world we live in \u2014 so I reached out to 3 different community management experts and asked how <em>they <\/em>show the value of their community.<\/p>\n<p>Below, I\u2019ll share their best tips for communicating ROI to your stakeholders. (We\u2019ll tackle the fries thing another day.)<\/p>\n<p>But first, it helps to know what you\u2019re up against\u2026<\/p>\n<p><strong>Table of Contents<\/strong><\/p>\n<ul>\n<li><a href=\"#why-is-it-so-stinkin-hard-to-show-the-value-of-community-management\">Why is it so stinkin\u2019 hard to show the value of community management?<\/a><\/li>\n<li><a href=\"#tips-for-proving-the-roi-of-community-management\">Tips for Proving the ROI of Community Management<\/a><\/li>\n<li><a href=\"#drawing-a-line-from-kpi-to-roi\">Drawing a Line from KPI to ROI<\/a><\/li>\n<\/ul>\n<p><a><\/a> <\/p>\n<h2>Why is it so stinkin\u2019 hard to show the value of community management?<\/h2>\n<p>If you run a community (or have been a part of one) the value is self-evident. So why isn\u2019t it as easily stakeholder-evident, too?<\/p>\n<p>As you take on reporting for your community, you need to keep these challenges in mind.<\/p>\n<h3>The benefits aren\u2019t always monetary.<\/h3>\n<p>Direct access to your customers is priceless. Unfortunately, that means it\u2019s also hard to put a price tag on it.<\/p>\n<p>And how do you measure the value of a user who <em>didn\u2019t <\/em>file a support ticket because they found the answer in your community?<\/p>\n<h3>The benefits aren\u2019t always visible.<\/h3>\n<p>Brand awareness, advocacy, sales acceleration, and increased product usage are all very real, very tangible <a href=\"https:\/\/blog.hubspot.com\/marketing\/community-management-expert-advice\">benefits of a thriving community<\/a>.<\/p>\n<p>Unfortunately, unless a member comes right out and says it\u2019s because of your community, those benefits are usually happening behind the scenes.<\/p>\n<h3>Tracking attribution is tricky.<\/h3>\n<p>Even when the benefits <em>are <\/em>both visible and monetary (like leads, signups, or sales) it can be difficult to show that your community was the interaction that caused that conversion.<\/p>\n<p>It&#8217;s likely that your members go through <em>several <\/em>touchpoints (blogs, videos, events, etc.) before even reaching a potential conversion event.<\/p>\n<h3>It often spans multiple channels.<\/h3>\n<p>Finally, as your community grows, it will likely live on some combination of forums, Slack, social media, etc.<\/p>\n<p>That\u2019s great for growth, but a challenge for analytics.<\/p>\n<p>But hope isn\u2019t lost. Behind every successful community is a leader who figured out how to report on its value. Below, you\u2019ll hear from three experts who\u2019ve done exactly that.<\/p>\n<p><a><\/a> <\/p>\n<h2>Tips for Proving the ROI of Community Management<\/h2>\n<p>Ultimately, the only way to show ROI is to draw a straight line from your community\u2019s actions to the stakeholder\u2019s goals.<\/p>\n<p>Of course, we know from the challenges above that it\u2019s not always that simple in the living. Here are some <em>actionable <\/em>ways to make that happen.<\/p>\n<h3>1. Get buy-in before you build.<\/h3>\n<p>Showing a return on investment is a lot easier when your stakeholders understand what the potential value is. Without buy-in, you\u2019re not actually reporting on progress toward that value; you\u2019re trying to justify your existence.<\/p>\n<p>\u201cIn theory, if your company is launching a community you already have executive buy-in,\u201d says Jenny Sowyrda, HubSpot\u2019s very own manager of community strategy and operations.<\/p>\n<p>\u201cIf you don\u2019t, pause here and go back to find an ally who wants you to have a community,\u201d she adds.<\/p>\n<p>(Seriously. Stop reading and go book a meeting.)<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/knowledge.hubspot.com\/hubfs\/Community-management-ROI-1-20240711-9672664.webp\" style=\"margin-left: auto;margin-right: auto;width: 650px;height: auto;max-width: 100%\" title=\"\" alt=\"Image of Jenny Sowyrda with a quote on community management ROI\"><\/p>\n<p>\u201cA very blunt way to say this is that if you aren\u2019t building your community, your customers and prospects are already building one somewhere else,\u201d Sowyrda says.<\/p>\n<p>\u201cAnd when you don\u2019t manage the community where your brand is being discussed, you lose control of the narrative, you lose direct access to your audience, and you\u2019re going to be running an uphill battle of trying to build trust with a group of people who don\u2019t need you.\u201d<\/p>\n<p>But how do you get that buy-in if you don\u2019t have anything to report on yet? Jenny has your back in our next tip.<\/p>\n<h3>2. Start with a small pilot.<\/h3>\n<p>\u201cI would call out the importance of experimenting and testing before going all in on a community effort,\u201d says Sowyrda. \u201cStart small and simple and then scale.\u201d<\/p>\n<p>In other words, start with a small pilot that can serve as a proof-of-concept for larger community efforts. That may look like a simple Facebook group, a product forum, or a single, dedicated channel on Discord or Slack.<\/p>\n<p>\u201cThis gives you time to identify what your success metrics are, see if there is a positive correlation, and then scale,\u201d she adds.<\/p>\n<p>If you find that positive correlation, you\u2019ve now got the data you need to make your case to leadership. And if you don\u2019t find the correlation, your program is still light enough to try something new.<\/p>\n<h3>3. Set clear expectations for timeline.<\/h3>\n<p>You\u2019ve presented your pilot and gotten buy-in; the next most important thing to talk about is timeline.<\/p>\n<p>\u201cThere are no quick wins in community,\u201d cautions Jenny Sowyrda. \u201cYet it is such an important part of building a trustworthy and valuable company.\u201d<\/p>\n<p>That may not be immediately clear to business leaders who are used to the relatively fast turnaround of paid ads and traditional marketing. It\u2019s part of your job to set expectations for the timeline \u2014 and you need to set them early and repeatedly.<\/p>\n<p>\u201cMake sure your stakeholders know that building a strong community is a marathon, not a sprint,\u201d says <a href=\"https:\/\/www.linkedin.com\/in\/alyssammartin\/\">Alyssa Martin<\/a>, community manager at HeyOrca. \u201cIt takes time to build trust and advocacy.\u201d<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/knowledge.hubspot.com\/hubfs\/Community-management-ROI-2-20240711-3044495.webp\" style=\"margin-left: auto;margin-right: auto;width: 650px;height: auto;max-width: 100%\" title=\"\" alt=\"Image of Alyssa Martin with a quote on community management ROI\"><\/p>\n<h3>4. Ask stakeholders about their goals and what metrics define success.<\/h3>\n<p>While you\u2019re having those initial conversations anyway, go ahead and ask your stakeholders what they care about.<\/p>\n<p>\u201cGet to know them, get to know their pain points,\u201d says <a href=\"https:\/\/www.linkedin.com\/in\/maxpete\/\">Max Pete<\/a>, community engagement program manager at Square. \u201cWhat are their goals and what are they looking for in terms of success metrics?\u201d<\/p>\n<p>Another great question is how they define \u201csuccess\u201d\u2014both in terms of data and outcome. Other questions to consider are:<\/p>\n<ul>\n<li>What metrics do you use to measure <em>your <\/em>goals?<\/li>\n<li>What would a meaningful impact look like to those goals?<\/li>\n<li>What outcomes do you need to see from this project?<\/li>\n<\/ul>\n<p>\u201cIt is super important to have those early conversations with key stakeholders on what is important data for them,\u201d Max adds. \u201c[Proving ROI is] difficult if you don&#8217;t know what you should be reporting on.\u201d<\/p>\n<h3>5. Approach reporting as problem solving.<\/h3>\n<p>One of my absolute favorite takeaways from talking with Max Pete: To approach reporting not as simply presenting data \u2014 but as how community helps to solve stakeholder problems.<\/p>\n<p>Now that you know their goals, pain points, and definitions of success, tailor your reporting to tell a story about how the community addresses all of that.<\/p>\n<p>As a bonus, this mindset will also help you focus your reporting on only the most important community management metrics.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/knowledge.hubspot.com\/hubfs\/Community-management-ROI-3-20240711-5363317.webp\" style=\"margin-left: auto;margin-right: auto;width: 650px;height: auto;max-width: 100%\" title=\"\" alt=\"Image of Max Pete with a quote on community management ROI\"><\/p>\n<h3>6. Connect your community to other teams.<\/h3>\n<p>Finally, consider that stakeholder goals aren\u2019t the only way to show value. By connecting your efforts to other team\u2019s goals, your community increases its own ROI.<\/p>\n<p>\u201cI am very biased but I\u2019m pretty sure you can apply community to every element of your business,\u201d Jenny says with a smile.<\/p>\n<p>Max Pete gives the example of using Square\u2019s community reach to bring attention to a new marketing campaign.<\/p>\n<p>\u201cBecause our cross-functional partner and I had a common goal of increasing engagement, we came up with a month-long activation campaign for members to participate in the community,\u201d Pete says. \u201cThe idea was to drive conversation around specific topics and use a CTA to drive members to read more.\u201d<\/p>\n<p>In the end, the collaboration boosted traffic to the marketing campaign while also increasing engagement among the community\u2014a win-win for both teams!<\/p>\n<p>And both of those successes will look great during stakeholder meetings.<\/p>\n<p><a><\/a> <\/p>\n<h2>Drawing a Line from KPI to ROI<\/h2>\n<p>So now you\u2019ve established goals. You\u2019ve set expectations. You\u2019ve defined success. It\u2019s time to choose what metrics will combine all of that into a cohesive story.<\/p>\n<p>We\u2019ll go deeper into how to measure these KPIs in our blog about community management metrics, but for now, here are some options to consider based on what your stakeholders value.<\/p>\n<h3>Brand Awareness<\/h3>\n<h4>Social Mentions<\/h4>\n<p>\u201cThis is probably one of my favourite ways to prove how a community is building trust,\u201d says HeyOrca\u2019s Alyssa Martin. \u201cAlways take screenshots of these posts! It\u2019s great to have to help prove your point.\u201d<\/p>\n<h4>Share of Voice<\/h4>\n<p>Share of voice compares your portion of brand awareness against competitors. In addition to social mentions, it can include paid ads clicks or keyword traffic.<\/p>\n<h4>Referral Rate\/Advocacy Rate<\/h4>\n<p>If your stakeholders are focused on brand awareness, referral rate is a great metric to highlight. Communities are uniquely effective in turning customers into promoters.<\/p>\n<h4>Event Participation Rate<\/h4>\n<p>This can refer to in-person events as well as online events like courses or webinars. Community members often have a higher participation rate than non-member audiences.<\/p>\n<h3>Conversion\/Revenue<\/h3>\n<h4>Conversion Rate (CVR)<\/h4>\n<p>This can be a tricky metric, because communities made up of existing customers may have a <em>lower <\/em>conversion rate. You\u2019ll have to define what conversion means for those cases.<\/p>\n<h4>Community Attributed Leads\/Signups\/Sales<\/h4>\n<p>This is another area where cross-functional campaigns can help. Other teams may already have access to downstream reporting on their own success metrics. If you can show that your community is a source of traffic for those teams, that can help you connect their conversions to your community campaigns.<\/p>\n<h4>Cost Per Conversion (CPC)<\/h4>\n<p>You\u2019ll need to calculate the total cost of running your community in order to find your CPC. That can be a big ask, but it\u2019s likely worth the effort.<\/p>\n<p>You\u2019ll probably find that community-attributed conversions are much more cost-effective than other forms of marketing.<\/p>\n<h3>Customer Service\/Customer Support<\/h3>\n<h4>Traffic to FAQ Pages or Knowledge Base Articles<\/h4>\n<p>Remember above when we asked how to show the value of a customer who <em>doesn\u2019t <\/em>file a support ticket? This is one way.<\/p>\n<p>If you can show that your community is a major source of traffic to self-service resources, it indicates that your community is saving your company money.<\/p>\n<h4>Average Response Time<\/h4>\n<p>Since you\u2019re spending so much time with your community, you may find that your response time is quicker than officially filed tickets.<\/p>\n<h4>Response Rate<\/h4>\n<p>While this typically refers to the number of queries that receive a response, Jenny Sowyrda explains that it can also refer to the percentage of responses that come from your company (versus other members).<\/p>\n<p>That can be a good indicator that your members are receiving accurate information from trustworthy sources.<\/p>\n<h4>Resolution Rate<\/h4>\n<p>This metric is like response rate, but specific to members who bring up issues or complaints.<\/p>\n<h3>Product or Company Feedback<\/h3>\n<h4>Surveys and Polls<\/h4>\n<p>Direct access to customer\/prospect opinions is one of the unique benefits of community management, and you should be tapping into it often.<\/p>\n<p>\u201cIf you want to know what they want, you can just ask them!\u201d says Sowyrda. \u201cIf you want to know what they don\u2019t like, they\u2019re probably already telling you (but you can also just ask them!)\u201d<\/p>\n<h4>Net Promoter Score (NPS)<\/h4>\n<p>You may not know it by name, but you\u2019ve definitely encountered NPS surveys before.<\/p>\n<p>NPS is based on some variation of the question \u201cOn a scale of 0-10, how likely are you to recommend our brand\/product\/service to a friend or colleague?\u201d<\/p>\n<h4>Sentiment Analysis<\/h4>\n<p>Sentiment analysis refers to using software to analyze the emotional tone of content. A good community management tool can help you analyze how your members feel about your company, product, or service.<\/p>\n<h4>Feature Requests<\/h4>\n<p>Your members can be one of the best sources of new ideas for improving your products and services.<\/p>\n<p>And, in return, fulfilling feature requests can be one of the best ways to delight your community members.<\/p>\n<h4>Product Feedback<\/h4>\n<p>\u201cYou can give the microphone to your community and let them speak about their experience and expertise,\u201d says Jenny.<\/p>\n<p>If you follow the tips from our experts, you should be able to quickly narrow down which of these metrics are right for your community.<\/p>\n<p>Soon, <em>you\u2019ll <\/em>be the expert who\u2019s figured out how to prove the ROI of community management. Next stop, french fries.<\/p>\n<p><a class=\"cta_button\" href=\"https:\/\/www.hubspot.com\/cs\/ci\/?pg=4f864156-7805-4d1e-89ef-8ca2c90a530d&amp;pid=53&amp;ecid=&amp;hseid=&amp;hsic=\"><img fetchpriority=\"high\" decoding=\"async\" class=\"hs-cta-img \" style=\"height: auto !important;width: auto !important;max-width: 100% !important;border-width: 0px;margin: 0 auto;margin-top: 20px;margin-bottom: 20px\" alt=\"Blog - Content Mapping Template\" height=\"226\" width=\"646\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/53\/4f864156-7805-4d1e-89ef-8ca2c90a530d.png\" align=\"middle\"><\/a><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/track.hubspot.com\/__ptq.gif?a=53&amp;k=14&amp;r=https%3A%2F%2Fblog.hubspot.com%2Fmarketing%2Fcommunity-management-roi&amp;bu=https%253A%252F%252Fblog.hubspot.com%252Fmarketing&amp;bvt=rss\" alt=\"\" width=\"1\" height=\"1\" style=\"min-height:1px!important;width:1px!important;border-width:0!important;margin-top:0!important;margin-bottom:0!important;margin-right:0!important;margin-left:0!important;padding-top:0!important;padding-bottom:0!important;padding-right:0!important;padding-left:0!important\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a perfect world, my car would run on starlight and dreams, fries would taste good reheated, and we would never be asked to prove the ROI of community management. In a perfect world, my car would run on starlight and dreams, fries would taste good reheated, and we would never be asked to prove [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":757,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Prove the ROI of Community Management (According to Experts) - Bell Marketing Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bellmarketingsolutions.com\/index.php\/2024\/07\/12\/how-to-prove-the-roi-of-community-management-according-to-experts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Prove the ROI of Community Management (According to Experts) - Bell Marketing Solutions\" \/>\n<meta property=\"og:description\" content=\"In a perfect world, my car would run on starlight and dreams, fries would taste good reheated, and we would never be asked to prove the ROI of community management. 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