The revenue impact of customer communities

I found this research on the The Economic Impact of Customer Participation in a Firm-sponsored Online Community very instructive.  Please note particularly:

“Puneet Manchanda, Grant Packard, and Adithya Pattabhiramaiah employ behavioral data on product purchases and customer interactions in an online community to quantify the incremental revenues for firms arising from increased customer engagement. They label these incremental revenues “social dollars.” They test for the existence and magnitude of social dollars via a difference-in-differences estimator using data from a multi-channel entertainment products retailer that launched an online community. The use of a “control” group in their approach helps the authors control for selection, heterogeneity, and any exogenous market shocks. They find that 19% of the post-launch revenue from community customers can be attributed to their joining the community. These social dollars represent a very significant economic return for the firm.”

About Arie Goldshlager

Customer Insight, Customer Strategy, and Innovation Consultant
This entry was posted in Customer Co-Creation, Customer Communities. Bookmark the permalink.

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