14.01 – Harnessing the Power of Social Hives

Most people belong to various formal or casual organisations composed of like-minded individuals. We seek out hives that mirror our values and needs, forming tribes with those we trust and enjoy. These groups, formed around religion, politics, hobbies, causes, social segments, and other shared interests or attributes, provide support systems, structure, and opportunities to collaborate on common causes or simply have fun. Most importantly, they create emotional bonds and loyalty that are hard to break.

Brands can also form hives to gain new prospects from their existing customers. This is crucial because the most powerful form of marketing is consumer-to-consumer marketing, which applies to both live and digital worlds.

Despite all the time we spend on social media, we thrive when around people, meeting face-to-face rather than just screen-to-screen. Events that bring customers together are powerful for delivering messages, introducing new products, and building enthusiasm, further validating a brand’s promises and products. Customer relationships built around hives also help decrease customer attrition because leaving one brand for another often means losing the professional friends or tribe associated with that brand, which can be embarrassing among those who were referred to the brand.

Growing Your Network with Customer Referrals

The power of word of mouth will never fade away. As stronger relationships with customers are built and trust and confidence established, asking them to refer their friends becomes a measure of success. If a customer recommends a brand to a friend or associate, they are putting their own credibility on the line. Once they refer a brand, they tend to be more loyal to reinforce the value of their referral. This increased loyalty underscores the importance of “referral marketing,” a proven method for generating qualified leads at a very low cost of acquisition, effective for both business-to-business (B2B) and business-to-consumer (B2C) brands.

Leveraging Networks to Spark a Movement

Our networks of social and professional associates are powerful tools for rallying support for important causes. In “The Power of Habit,” Charles Duhigg explains how Rosa Parks became the face of the American civil rights movement. Parks wasn’t the first person to refuse to give up her seat, but she had many circles of friends and associates. By tapping into these networks and asking members to do the same, a small group of civil rights leaders was able to organise the Montgomery bus boycott around Parks’s arrest, sparking the U.S. civil rights movement of the 1950s and ’60s within days. All this happened without the connections and instantaneous power of social media.

Asking for Referrals

Referrals can be requested in many ways:

Offering customers a reward for referring friends and family can increase success rates. Rewards might include a discount on their next purchase, a cash reward, or free gifts that complement their past purchases. Hosting events to show appreciation and encourage referrals can also be considered rewards if the event provides value or a unique experience.

Hosting Customer Events That Inspire Engagement, Loyalty, and Referrals

While many tools can automatically communicate with large networks online, the power of face-to-face engagement should not be underestimated. People still enjoy shopping at retail stores, meeting friends for coffee, and touching products before buying them.

The possibilities for face-to-face events are numerous, but it’s essential to focus on providing meaningful experiences relevant to customers and highlighting how you enhance their lives. Well-planned and executed events can foster strong relationships, adding to your partnership value for customers and solidifying your position as a subject matter expert. The key is to focus on events that are relevant to your category, reinforce your brand position, and are meaningful to customers.

Online Events

Online events have surged since the COVID-19 pandemic began in early 2020. Webinars and online conferences via platforms like Zoom, Microsoft Teams, or Google Meet continue to draw strong attendance and build customer value. Because online events are inexpensive to produce and host, they can be done more frequently. They are useful for quarterly user meetings to update customers on new features or offers, introduce new product generations, share business news, and more.

Large brands often hold shareholder meetings online, inviting investors to ask questions in a controlled setting. This approach can work for nearly any industry, allowing real-time communication and feedback.

Off-line Events

Off-line events bring people together in person for meaningful experiences. These can include user forums, customer appreciation dinners, facility tours, open houses, or anything else that attracts attendance. The key is to create value beyond what people can get online, justifying the time it takes to participate and creating ways for attendees to share stories about your brand while having fun.

Consider the Harley Owners Group (H.O.G.), which has more than one million members. H.O.G. members get together for rides and charitable events, bonding over their shared passion for Harley-Davidson motorcycles. This program has played a significant role in turning around Harley-Davidson’s sales, making Harleys one of the most popular bikes in the U.S.

Trade Shows

Trade shows build visibility and presence among customer and partner prospects within your industry. Value can be derived from exhibiting or attending for informal networking. Setting up meetings at trade shows with key prospects or influencers can be more valuable than exhibiting because you can select who to meet. If exhibiting, purchasing the attendee list in advance can be worthwhile to send attendees an incentive to visit your booth.

Customer Appreciation Events

Entertaining and recognising customers through events can strengthen relationships and secure repeat sales. For instance, Lexus hosts events like wine tastings and concerts to reflect the luxury nature of their cars and customer experience. Big-brand events for B2B customers, such as Microsoft Ignite, draw large numbers and help foster a strong community.

Community Fundraisers

Supporting worthwhile causes can gain trust, support, and loyalty among customers. Hosting an event that unites customers and employees for a common cause creates emotional bonds and friendships that transcend price. A construction company in Vail, Colorado, hosts an annual kickball tournament, raising money for local charities and drawing significant community visibility and support.

Fun Family Events

Consider organising social events to mingle with customers and build friendships, such as a pumpkin festival, community talent show, or educational event for families.

Educational Workshops

Hosting workshops to share expertise in your field can attract public interest and build your database. For example, a pet store owner could bring in an expert on dog nutrition or host a talk on blending cats and dogs in one family, inviting the public to attend for free.

Expanding Your Imprint with Client Advisory Boards

Customers are an excellent source for insights on improving products and services to expand reach and revenue. Strong relationships with customers can lead to forming an advisory board that offers feedback on new ideas, market voids to fill, and critiques of products or services. This can build loyalty among participating customers and provide a competitive edge with access to critical market information.