Understanding Strategy and Function of Community-Based Marketing

The tribal marketing approach is likely to be art than a science. Tribal is from the word tribe that means community. The community-based marketing strategy is getting popular for companies due to its focus on maintaining existing customers.

In fact, the company with a good retention rate is more profitable than the ones that only focused on acquisition. Therefore, what a startup should do to implement this marketing strategy?

In order to get further, #SelasaStartup has invited Tribelio's Founder and CEO Denny Santoso. Tribelio is a startup that provides a one-stop management platform to help people who want to build a community and earn income from the community's presence in their business.

This community marketing is increasingly popular in Indonesia because it is currently entering the product era. Selling is easier on any platform, but it leaves a new issue of price wars as more and more people sell the same product. The impact is consumers are no longer loyal because they choose the profit-press strategy.

What is a community based marketing?

Danny said before explaining the community marketing, that this one is part of digital marketing. Many people are usually mistaken the digital marketing as online advertising. Advertise for the sake of getting financial coffers.

In fact, it's really not at all. First, you must understand the management of the consumer cycle, from not knowing a brand, to use the brand, until finally becoming a loyal consumer.

In attracting consumers, utilizing social media platforms from Facebook and Google is the biggest source of traffic. But if you only get the traffic, how do you want to make a sale. The thing is to obtain data from these visitors.

The strategy is usually to offer discounts for first purchases, at the registration step. Next, consumers will be given a loyalty program in the form of discounts, the latest product information, up-sell or cross-sell.

"To have loyal consumers, up-sell cannot be the only way. The key is to build a relationship. From the time they were not aware, then they bought it, and finally all of the consumers were gathered into a community. This, what business players can use," Danny said.

However, the database remains passive, it means no sale if you do not know how to use it. As a result, the company will not be profitable by relying only on advertising. This is where community presence is needed.

This community, according to Danny, has a clear definition, that he is a group of people in a group who have one big idea and a clear line of communication.

"For example, a company has one million customer databases, members will not aware if not from the information by the leader. Because only leaders know this information. This community will not work if the communication between members and leaders does not work vice versa. The community must also be able to invite people."

Determining a clear goal and consumer target

After the database, it must be sharply defined who is the target consumer, who is willing to buy the product. Danny pointed out that many people were still ambiguous or could not specify who the target users. If only to categorize the target consumers based on gender, age group, and location, surely no one will want to buy.

"If you set your target customers that way, you can immediately test and see that no one will buy it. Finding that ideal customer needs a process called mindset shift."

In general, a mindset shift is a process of changing the mindset that occurs in the consumer's brain because it is exposed by various content, whatever its form, which eventually becomes an acceptable knowledge. This process does not happen instantly.

The knowledge process is delivered in stages. The earliest is content through social media platforms to be accessed for free. Once the content has been received, consumers will extent to the next product, from books, 30 days challenges, workshops, to mastermind.

Community is not a space for sales

Another misconception is to make the community as a gathering place and the next alternative for selling. It's not like that. People will instead turn to the marketplace platform to shop.

Danny said you have to determine what dreams each community member will definitely get if you join? Is it knowledge, network, or status? This determination is like religion, there is a faith that is attached so that members can taste the benefits when joining.

In setting this dream, one must know what the person's dream is, then the challenges such as what prevents people from chasing the dream. This is what will make an active community, therefore, its role is crucial.

"Most people start a community with a business mindset. That must be changed by using a market mindset. A good community is one that offers future hope. The member's dream must be resolved through the community, that's the content, not necessarily discussing the product."

–Original article is in Indonesian, translated by Kristin Siagian