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Building Customer Communities Is the Key to Creating Value

Harvard Business Review

At Level 3, you engage the customer emotionally, which strengthens loyalty and retention. At Level 4, you're helping customers build their social capital — that is, helping them to build and expand valuable support groups and communities. Firms like Microsoft are taking this up a notch, with industry councils.

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With Tweet-to-Buy, American Express Values its Community at $10

Harvard Business Review

The company is better off offering a discount today, because that will likely increase the customer's loyalty, and loyalty increases the CLV. This magic middle, about 9% of social media users, are trusted experts, bloggers and journalists who have built up influence and social capital in particular niche areas of interest.

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Do You Know Who Holds Your Office Together?

Harvard Business Review

Corporations and LLCs are controlled by human beings with pulses, hearts, families, loyalties, and a preference for working with people they trust. Tending goes a long way in mitigating the “workers as machines” phenomenon common in industries requiring billable hours or sales quotas. Social capital also counts.