Online Community – Moving Beyond Metrics to ROI

We gave a presentation on building ROI models for online communities at the Online Community Unconference in Mountain View, CA on June 10th. It was added because so many of the participants stated that ROI and calculating the value of their community was the most important issue they faced.  So, we didn’t have time to build a true presentation, but rather lead a workshop for participants to learn more. It was lead by our president, Mike Rowland.

Here are the summary notes taken during the session:

• Have to first identify what is the economic value of the community to the organization offering it: (Don’t confuse traffic or behavior metrics with value)
  • Cost Avoidance
  • Increased subscription rates or lower churn rate
  • More frequent purchase rates
  • Higher purchase level/amts
  • Faster close for large item sales
  • Reduce lead generation cost
• Once you’ve identified your value metrics, break down your metrics into 3 buckets to look at communities:
  • Traffic – PV, visits, visitors, etc.
  • Behavior – What they do when the get there, who they are, download/visit, contribution/member, responses by employees vs. customers
  • Value – can attach an economic value to it. Need $ to get to a true ROI model. See above list.
• You have to build relationships w/ the folks in your company. Need access to other systems. You cannot build ROI from community analytics provided by software vendors or from traffic and behavior metrics alone. 
• ROI Frameworks:
  • Cost Avoidance
    • The person who proposes the question needs to verify the answer. This is a feature needed in the platform.
    • # of community support resolutions X $ complimentary support resolution (1-800 number) = total cost avoidance -> economic value
    • Track over set period of time (e.g. quarterly or yearly)
    • ROI = (total economic value – total costs to set up and run forum) / total costs –> over one period and as a percentage
  • Increased subscription or reduced churn
    • Customer database compared to community database
    • cust. database = Average churn rate (e.g. the number of months the avg user subscribes) X price/subscription = customer value
    • Community database – look at active members and see if the churn rate is better or worse.
    • Price will be the same, so you’ll have to see if the churn rate was more or less. If subscriptions are longer, than you have a higher customer value for community members.
    • Shows you slowed the churn rate down.
  • More frequent purchase or Higher Purchase level/amts
    • Use your eCommerce DB or CRM system
    • What is the avg amt customers spend/purchase?
    • go back to comm DB and parce out active members and compare to ecommerce DB (which ones spend more/purchase?)
    • Do comm members have a higher spend/purchase? active comm users X avg $ they spend = economic value
    • Need to trend this and see how it fluctuates.
    • what is the average number of items in completed shopping activity? (e.g. 1.6 items) Do comm members buy more?
    • Avg cost/item X avg # items = economic value
  • CRM decrease cost
    • Want to find what avg value of customer is
  • Faster close of sale (Good for large purchases like software or hardware systems)
    • How fast are organizations moving through your CRM system to sale?
    • Identify active organizations in community DB to compare them to avg organizations.
    • How long does it take the avg. organization to go through sale stages? What’s the cost/sale? Do active organizations in your community go through more quickly and spend more?
  • Lead generation cost
    • Similar to above, but use cost to generate a lead for average customer versus those which originate in community/social media campaigns
• How can you tell if a user came to your comm and then bought your product through a 3rd party reseller? You can’t unless your resellers provide access to their databases which is next to impossible to get.
• Users of support communities become brand neutral after their issue becomes resolved.
• Hidden costs of community for ROI Analysis, make sure you count these:
  • Servers
  • development costs
  • customizations
  • widgets
  • maintenance
• Make sure that you are amortizing your costs across the same time period as your economic value or you will skew your results.

One point to remember is that the value of communities really is derived from active members, not all members. So define your active members with criteria that meet your behavioral key performance indicators (KPIs). For example, an active member can be someone who posted in a forum, downloaded a featured whitepaper, uploaded content, or viewed a webcast in the past month. For B2B especially, it doesn’t have to be an activity within the past week as most B2B community members average 2-3 visits per month unless they are deep into the sales cycle.

The number one issue to watch out for when building your ROI framework is the use of proxies. If you cannot get the data, don’t guess at a proxy for the value because the more proxies you utilize the bigger the house of cards that you build.

Lastly, value can be a set of different items. For a subscription based community value can be both churn rate differential and purchase levels. ROI is not a single value formula, it is a multiple value formula in most cases as there is marketing value in support communities and vice versa. So make sure that you are at least attempting to capture as much of the value drivers as possible in your analysis.

Want to learn more about online community or social media ROI? Contact us today or leave a comment.

B2B Communities – What Works

We gave a presentation at last week’s Online Community Unconference (site is open to the public as of June 19th per Forum One) in Mountain View, CA on B2B Communities. We weren’t surprised by the number of attendees looking to learn more about the best practices for running a B2B Community, but were surprised a little bit by some of the misperceptions on managing them.

Top Best Practices for B2B Communities:

1. B2B Community Members have higher expectations than B2C members. You must engage with them as they want to engage with your company just as much as they want to engage with their peers.
2. B2B Communities require internal SMEs to engage early and remain committed to meeting member needs until external SMEs can compliment the internal SME efforts.
3. Third party applications like Twitter and Facebook should not be used as external competitive communities, but rather should be utilized as beacons to drive traffic to your community and key information.
4. You can measure the ROI for B2B communities, but you cannot get there by using only community software metrics and/or web analytics packages like Omniture or Google Analytics. None of these provide true value metrics that have an economic value associated with them. To get to ROI, you must build relationships within your organization so you can obtain real data on customers, leads, ecommerce transactions, etc.
5. When budgeting for B2B communities, be realistic. For example, no single vendor of software or web design or implementation services will ever come in exactly where they quote when you want additional features or customization. So build a small cushion into your budget to be safe.
6. To attract business decision makers, you must focus on how they will use the site… not how you want to market to them.
7. The higher the level within an organization your potential members have attained, the lower the amount of time they will have to spend on your site. So don’t waste their time!

In short, B2B communities can deliver impressive results when managed properly with a focus on those segments who deliver the value to your organization. Don’t be all things to all people, that strategy is doomed to fail. To learn more about the best practices for B2B communities, please download our presentation , ask questions in the comments area below, or contact us.

Online Community – Understanding the Myths

Are You Blindly Following the “Wisdom of the Crowds” ?

Last year, we presented this topic at the Online Community Unconference in NYC to a standing room only crowd. It’s a fun topic, albeit one that elicits strong opinions and discussions. Whether you are an industry veteran or someone who is new to online communities and social media, this presentation can help you understand and avoid some of the classic mistakes being sold by the blogosphere and ‘gurus’ every day online. It’s available in our Social Media Resources area as a pdf that you can download.

For this month’s Online Community Unconference (June 10th in Mountain View, CA0, we are updating the presentation to cover even more myths that continue to gain a following despite impacting the results of communities and their teams. For example, are you using B2C thinking in your B2B community? Are you sure you need to be on third party platforms like Twitter, Facebook, MySpace, and others? What about metrics, are you confusing traffic with value? What role should volunteers play in your community?

These and other topics will be discussed in our talk. We hope that you’ll join us.

The New Reality – What It Takes To Get Hired In Social Media

The economy is tough, but social media keeps growing. Impact Interactions is growing this year and once again is adding staff. We’re also trying to help those impacted by the economy and those coming right out of school to understand what working in social media is really like.

From our experience, here is what it takes to get hired:

• A focus on business skills like written communications, presentations, and statistics
• Understanding of how businesses operate from a financial perspective
• A basic understanding of Marketing, eCommerce, Advertising, and Sales
• Experience as a team member who’s used the power of collaboration to help everyone succeed
• A positive attitude
• A “relaxed” professional appearance (you know what business casual means)

Did you expect that?

Notice what’s missing?

That’s right, you do not have to be a Facebook addict or have 2,000 followers on Twitter or 500 connections on LinkedIn. You don’t have to know how to build a widget to update a user for when the top 20 members are on the site. If you use Tweetdeck, great. If you have no idea what it is, no problem.

Yet, when we give career talks, advice to job seekers, and interview our own candidates they focus on their Facebook or MySpace skill, the number of followers they have on Twitter, or what online community they use. What are we focused on? Simple, can the candidate learn our business while building strong relationships with our clients? Can the candidate make the client look good while understanding that he or she will be in the background?

Afterall, Social Media for all its wonderful claims of revolutionizing the world is really just another set of tools to increase the efficiency of business in meeting their goals. Direct mail, robo-calls, telemarketing, advertorials, infomercials, email campaigns, listservs, click-to-chat, click-to-call, and other marketing tactics helped businesses gain efficiency in their marketing efforts. Social Media is doing the same thing. The underlying principle is to use the correct tool set to engage your customers in a way that benefits both sides of the relationship. (It really is that simple.)

But you have to understand and like business for business sake. Because Social Media is not all about playing with the latest cool technology, it’s about getting results. No results equals no budget.

The great push right now is to find employees who can help companies understand social media and measure the results of their efforts. Think about every online community, web 2.0, or social media conference you’ve attended or read about… what is the one area that is always a topic of interest? Measurement and monetization.

Success in Social Media requires a focus on results, thinking strategically and executing tactics that achieve tangible results like additional sales, reduced marketing costs, faster velocity of sales, reduced lead generation costs, reduced support costs, etc. There are so many people who want to work in Social Media today, but few are willing to demonstrate their business acumen to get the position. We saw this in the late 1990s in the online community world, again in around 2003 with the blogosphere, and yet again in 2005 with the early social network companies. And here we are almost ten years later with the same issues.

So do you want to work in Social Media? My advice to you is brush up on your business skills first. Worry about your number of followers on Twitter later.

What do you think? What skills do you think it takes to work in Social Media?

Mike

Welcome to our new site!

I’d like to welcome you to Impact Interactions’ new web site. Please take a tour around our site and let us know what you think. We’ve consolidated our blog and company information for clients, prospects, and visitors (frenemies too!) trying to learn more about Social Media and/or Online Communities.

We’ve added a new section Social Media Resources to give you quick access to our presentations from conferences and meetings. You’ll find our presentations from Community Unconferences, Business Forums, Internet Strategy Forum Meetings, as well as presentations we’ve delivered to companies wanting to learn more about using Social Media to excel.

We’re also adding a link to our Twitter Account(@ImpactInteract) for those who want to follow our Social Media and Online Community ideas and work issues. For those of you who have been following me at MRowland602 on Twitter, that account will now become my personal account rather than the voice of Impact Interactions. So please consider following @ImpactInteract instead to stay up to date with us.

We’ve also added a link to our facebook account where we’ll add interesting photos from our office and employees as well as additional commentary that runs more to the fun side of running online communities and social networks.

As part of the change, our Blogger account will no longer be updated. All content from our previous blog going all the way back to 2004 has been moved to our blog here. We’ve categorized and tagged the content to make it easier for you to find the information you’re looking for.

Of course, we also have our marketing information as well. If you are looking for an experienced firm with the credentials to make your project (and you) successful, please contact us to continue on your path to success!

Thanks again for visiting, we hope you like the site.

Mike Rowland, President & Founder

Invasion of the Marketers – How to Deal with Paid Promoters in your Community

THEY’RE HERE…….

That’s right, the brand cheerleaders have infiltrated your community and are destroying the ‘authenticity’ of the dialogue. And guess what? IT’S ONLY GOING TO GET WORSE AS MORE MARKETERS USE THIS TACTIC AS THEIR ‘VIRAL’ MARKETING CAMPAIGN.

In a recent “scandal” running through the online community world, Royal Caribbean has been using sponsored members to promote its cruises across many communities such as Cruisecritic, TripAdvisor, travel blogs, and other sites where potential cruise customers might be lurking. While Consumerist has a great write-up of the details, and Tripso.com’s Anita Dunham-Potter has more details, the tactic is not new and will always be with us. And even though folks like Jeremiah Owyang are identifying the sponsored conversations in blogs, the trend towards using online communities and social networks is increasing each week.

As a professional moderation company, we see the campaigns hit across the multiple communities we manage for our clients. We see the trends quickly, whereas a moderator working for a single community may spot the campaign a little slower. Either way, you must act because these campaigns, like spam are not going away anytime soon.

The real issue is how to deal with this issue in your community when it happens.

Early on in the 2008 Primary Election season, we noticed a large number of posters in the AARP Issues & Elections community supporting Rudy Giuliani. No matter what the criticism by the Democrat/Liberal members of the community, these folks came back cheery about how wonderful Rudy was and what a great President he would make. While not as rampant as the “Royal Champions” of Royal Caribbean, they were persistent nonetheless.

We’ve also seen product supporters for Life Alert, The Scooter Store, and every multi-level marketing program on the market today in the community.

In each instance we’ve used several steps to push back on these folks and out them as the marketers that they are. Your moderation team should see the trend before your members start to complain and take action.

Steps to Take to Clean Up Your Community:

1. Start by checking out when the ‘cheerleaders’ registered. Most marketers who use this tactic do not have enough control over their posters/viral team. So, what ends up happening is they all start registering within a few days of each other. If you see a pattern of registrations, the marketers have hit your community and you must take action.
2. Get your own hyper-affiliated enthusiasts up to speed with what is going on. Give them the okay to confront these posters with questions about are they receiving anything for their posts, are they sponsored by the brand they promote, etc.
3. ENFORCE YOUR TERMS OF SERVICE! In the case of the Life Alert and Scooter Store cheerleaders, they continually posted links to the store where you could purchase the product. They violated the TOS for advertising in the community, so our moderators were able to remove the posts.
4. TRUST YOUR MEMBERS TO RECOGNIZE THE CHEERLEADERS FOR WHAT THEY ARE! Most folks recognize that someone who never is critical of a brand/product/service is biased. In most communities, those folks lose credibility among your longer term members. Some of these members will call out the cheerleaders in public, reducing the credibility of the cheerleaders.

Despite their best efforts, many of the brands who use this strategy are not that sophisticated in selecting who they use for the job. For example, in the “Royal Champions” case, the cruise line worked with Buzz Metrics to identify its promoters and then recruited them with trips and perks. But they recruited a 14 year old! (Cruiserccl, who at the ripe age of 14, professes that program hasn’t changed his posting habits.— Yeah right, he’s a good example of the quality that some brands go to for finding cheerleaders.) How many cruises has a 14 year old gone on which would qualify them as a cruise expert?

We see most of these efforts fail because they follow the same patterns as spammers. As a community moderator/manager, you must watch the trends in your qualitative content and be ready to act. The text may not always be similar, but the tone and message in these campaigns will be. Use the tools that you have and the top members in your community! If you let these campaigns in, your members will begin to think that you are getting paid something for the campaign. This can only have a negative impact on your community.

Just as with spam email, some marketers think that paid cheerleaders as a viral campaign is a great tactic. But in the end, most of these campaigns are run poorly and have the potential to actually damage the brand that they were set up to promote. Along the way, they can also damage your community if left unchecked. To learn more about dealing with cheer leading campaigns run in your community, please contact us.

Community Myth Busting – OCUE2009 Presentation Notes

This entry is a summary of a presentation we made at last week’s Online Community Unconference East meeting in NY. The session was attended by roughly 20-25 members and lead by our president, Mike Rowland.

The idea of the session was to drive discussions regarding many of the common ideas around community that have been published/promoted/blogged about as if they were absolutes rather than the experiences of a few. The topics covered the following:

1. 90-9-1 Rule- Comes from concept of Participation by Jakob Nielson. Worked pretty well in early 1990s when published. Major impacts on this idea have been adoption of online communities since 1990, broadband adoption, social networks, etc. We find that the numbers don’t hold and should not be relied upon in selling a project to management or in goal setting due to the wide variances we’ve measured with over 40 communities over the past eight years.
   - At Participate.com, we modified the rule to use as an outreach rule of thumb.
   - At Impact Interactions, our clients have ratios all over the map
   - It’s more important to measure the quality of interactions as it relates to your objectives instead of trying to work towards a specific ratio
2. Self-Policing Communities – Using volunteers to moderate and report violations is a hot trend for organizations to buy into right now. But it’s been that way since at least 2000 when we spoke of hyper-affiliates and enthusiasts. Our experience has shown that most community members cannot be relied upon to keep the community moving forward.
   - Volunteers will catch some violations, but mostly report content that they don’t agree with. This forces community team to review content twice or more which is inefficient
   - Volunteers are good at defensive work (spam, porn, etc.) but do not align with your organization’s objectives in most cases and won’t faciliate most B2C communities (B2B support communities, they usually will keep the conversations moving forward towards a resolution.)
   - Data in our presentation that we’ve been tracking each year for clients shows that members generally report about 20-30% of all violations in any given month. You still need moderation…
   - Our surveys of multiple community members (both B2B and B2C) over time shows that members don’t want to be classified as a tattle tail, nor do they believe it is their responsibility to keep the community free of junk, nor do they want to handle being attacked for removing or editing members’ content for violations.
3. Personas – There are strong feelings around this topic. The term authenticity comes up quite a bit when discussing personas when what is really meant is transparency.
   Great conversations on this one, with no conclusion reached about using personas or not.
   - Most personas get blown by members because the host creating the persona doesn’t think through the process and character, misuse the persona to cheerlead the organization and its products, is so unbelievable (master of health issues, political issues, computer technology, astrology, etc.), or is used to sell in the community. All of these are wrong and should be avoided.
   - Where personas work well is very, very limited. In new communities, personas can help seed conversational content and help demonstrate norms. In a flame war, they can help diffuse the situation (especially in the case of unjust attacks). Over time, as the community grows, the role of the persona should diminish.
4. Volunteers/Hyper-Affiliates as Good Guys – Beware the myth that your top people will always love and support your community.
   - The more volunteers/hyper-affiliates you have is not always a good metric
   - They don’t always follow the rules and have no objectivity
   - When a volunteer or hyper-affiliate turns against you, the result is a much larger confrontation than you might think.
   - Once enabled, it is very difficult to make changes to your site/community without a large time commitment to deal with the criticism of your volunteer network.
   - Letting volunteers and hyper-affiliates run the community demonstrates favoritism on the part of the host organization in the eyes of many non-recognized members. It is a double edged sword which if not carefully managed can have very negative consequences on your community’s conversion and engagement ratios.
5. Community ROI cannot be measured – Everyone is familiar with the cost avoidance argument to measure ROI. But after that, the conversation usually stops because the thought is that it is too hard to show the economic value of the community.
   - Don’t confuse value with ROI… they are not the same!
   - You can measure the economic value generated by your community using multiple data sources and methods. We’ve measured the online community ROI for sales (influence on purchase & intent), Marketing (awareness and loyalty), lead generation (development and qualify leads faster), and e-learning (higher achievement and registrations). They all require certain data that doesn’t come just from the community’s metrics.

We’ve uploaded the presentation as a pdf on our web site in our Social Media Resource Center.

Why Does Everyone Believe Community ROI Is So Hard To Measure?

Just finished reading Jeremiah Owyang’s blog on ROI for online communities and social media. The entry is here. Jeremiah’s suggestions are accurate and some of the comments from our colleagues are really helpful. Here is our commentary which we’ve also posted on Jeremiah’s blog:

What I find interesting about this topic is the general disagreement of the relevance of ROI in the discussions of community and social media experts. We’ve attended events, webinars, and industry meetings, where people were unclear or downplayed the importance of this measure for social media and communities. Others in the Social Media space blog frequently that ROI is either tough to do or not relevant.

At Impact Interactions, we believe that ROI is a crucial element of the community building and management process. You must start building your framework before the community even launches, then refine it over time. But you cannot use just the metrics from your community, you must align them with additional data from within the organization (CRM records for B2B for example).

For B2B support clients, we measure technical questions answered by members as a cost avoidance measure to demonstrate the scalability of the community versus call center costs. We supplement it with survey data on customer satisfaction, purchase influence, and information utility. It all adds up to a large ROI.

For a marketing focused B2B community, we built a framework that demonstrated the influence that the community had in influencing sales of multi-million dollar contracts. We mined the transactional data and compared it with the CRM records to develop a pattern of influence on sales velocity, lead generation, and sales.

For a B2C automotive parts company, we compared sales transactions from the companies e-commerce database with community transactions to find the ROI for the community. It also reinforced the powerful notion that community members were buying more frequently than non-community members and that each purchase transaction was larger than those of non-community members.

For a B2C subscription based service, at Participate.com we demonstrated that community members churned at a rate 50% lower than non-community members, resulting in millions of dollars of revenue and profits.

Each of these clients had an ROI on their community of over 100% once their communities scaled.

It is not hard to develop the ROI framework, but it does take time and relationships within the organization to get the appropriate data. If you are a community manager, you need to build a network outside of the community area in your organization in order to align the community’s analytics with your organization’s focus and goals. Only then will you be able to tap into CRM or e-commerce databases to validate your framework.

We have some basics on B2B ROI in presentations available for free in our Social Media Resource Center on our website. Please feel free to visit and download the presentations. In our introductory deck on Impact Interactions, we have quotes from Cisco, Mercury Interactive, and ATT on their ROI from their online community efforts. Here is the link: http://www.impactinteractions.com/social-media-resource-center.html

What Jeremiah has posted is absolutely spot on. But is up to you as a community manager to act. In this environment, you cannot afford to have your community (and job) viewed as a soft application that doesn’t produce tangible, measurable results. If you’d like to learn more, please contact us.

Online Community: Best Practices in Moderation Techniques

There is an interesting entry on Jeremiah’s blog about “Job Hazards of the Community Manager” which is generating a lot of comments from newer, less experienced community managers. What is fascinating is that what Jeremiah is blogging about never has to happen, nor should it.

Specifically, the entry is about the ‘cyber-stalking’ of community managers outside of their own community on places like Facebook and MySpace (and for you B2B folks, LinkedIn). Many community managers are shocked to learn that members assume that the relationship extends outside of the community. When these relationships are good, it’s not so bad. But when relationships are bad, it’s really bad.

In our nine years of managing online communities and social networks for clients, we’ve seen all types of reactions by members towards community managers. A strong, sometimes intense relationship can occur in active communities and should not be discounted. These relationships can be extremely tight and formed over years. But they should never go outside the existing community ecosystem. Here is why this is true and it might surprise you because there are two sides to this…

1. When a community manager or moderator can be located outside the community, too much personal information can be found which may reflect poorly on your brand. For example, we know of several community managers using their own names in B2C communities who had information on Facebook that was not appropriate. That information was used against them in the community. Similarly, in one of the communities we currently manage, we have a disgruntled member searching all over the net for anyone who has ever been associated with the community within the client’s team and sending threatening emails. Do you want these people to find you and drag you into their soap opera?

2. When a community manager is known personally (Tom Smith), what do you as an organization when that person leaves? We’ve seen former community managers who were let go by companies, blog complaints about their treatment. And guess what? The community members found the blogs and then brought the subject up in the community and fired off angry emails to corporate legal departments. This tied up all kinds of resources unnecessarily for several weeks.

So, here is the best practice for companies launching communities and for community managers:

NEVER USE YOUR REAL NAME IN A COMMUNITY!

Seems simple right? But in the misguided thinking of building relationships that are true and honest with the community members, too many community managers are using their real names & pictures in their community. And the sponsoring companies aren’t thinking about what could go wrong and impact their brand online. Everyone needs to remember that there are bad guys out there too… not everyone buys into the uptopian experience of community as detailed in many of the leading community management ‘theory’ books and articles. So beware the false best practices being pitched by many consultants and focus on those best practices that make sense in the long run.

We recommend that community managers use a name that is ‘generic’ such as Community Host, HostTom (instead of Tom Smith), etc. That way the privacy of the individual acting as a community manager is protected, while allowing the company to replace the community manager if needed without stirring up the community too much. When you are building out your strategy and processes, you need to think long term with a bias towards protecting your brand against unnecessary attacks in the future.

Want to learn more about our best practices and how our real world tested methodology can help your organization sift through the misperceptions about running a community? Contact us, we can help you build a stronger community or social network based on our nine years’ of experience.

Can Community Members Police Themselves?

The criticism question or fear is always the 1,000 pound gorilla in the room when discussing communities with new clients and prospects. The idea of someone bashing your product or brand in public is still a very uncomfortable idea for many executives. Unfortunately, too many of our competitors whether they are consultants or software companies, answer that the criticism will be answered by members, so don’t worry about it so much. But that is entirely the wrong answer.

In our nine years experience in working with online communities and social networks, we’ve developed the slide below to help organizations understand the stages of the community lifecycle from a moderation/facilitation/member contributions standpoint:

The trouble with most community advice being given today is that it assumes that most communities are starting at the higher end of the Middle Maturity level or in some cases at the High Maturity level. In our experience, this has never been the case. All communities launch at the Low Maturity level. It is up to the organization offering the community to understand the needs of the community and get involved early to help the community mature. If you sit back, the community will never get to the High Maturity level shown above.Regarding criticism in the community, our experiences vary. But in short, if you rely on your community members to police themselves and respond to criticism you will be disappointed.

In nine years of working with over 40 online communities and social networks, we’ve seen very few communities that had reached the stage of maturity where they could police themselves. Here is what we’ve learned about this from surveying multiple communities about the idea of members policing the site:

• The majority of members in most communities will not report violations. Sure a couple of your top members might, but members believe it is the hosting company’s responsibility to keep the community clean and working.
• The overwhelming reason why members won’t report issues is the fear of being labelled a ‘tattletale’ or company employee or company shill by other members ruining their credibility online.
• While members have an affinity for your brand, they don’t have a responsibility to defend your brand and many will wait to see how you respond as an organization before jumping on board to support.
• Members in B2C communities actually enjoy a good flame war from time to time. They want to see the community management in action to reassure them that the organization cares about the conduct within the community and that the management is aware of the member needs. Because of this, in many B2C communities, members will not step up to prevent or stop a flame war, but rather actively participate in it. This is especially true of your most devoted members.

One example we have where a member stood up against a trolling competitor in a B2B community was with a large technology community back in 2002. In this case, a competitor trashed the product being looked at by a member of the community. Our moderation process was to leave the criticism up and respond after 2 business days. Within a day, we saw a member respond with a long comparision of the products mentioned which clearly showed the benefits of our client’s products over the competition’s. But this was a single instance out of many… and in a community that was already moving towards High Maturity, not in a new community.

In the B2C communities that we are moderating, we see that roughly 85% of all violations of the terms of service are found by our moderation team. Even worse, 50% of the violations reported by members are not violations but rather cases where they disagree with the member’s point of view (so we restore the content). When members of the community criticize the organization, they ridicule members who support the organization. After several of these discussions, members stop coming to the aid of the organization.

So what should you do? You must leave the criticism up if it’s valid and respond. Just don’t expect your members to do it for you. Part of running a community is getting into the mix and interacting with members…. too many companies are being told by consultants to sit back and let the members dictate the community’s operation. That’s just poor advice. Process and moderation/facilitation are very necessary in any community. Letting members dictate everything ends up in chaos which does not result in achieving any significant objectives for the organization offering the community.

Want to learn more about moderating and facilitating in your online community? Visit our web site to download our free presentations and contact us with your questions.