The latest research on the value of online communities shows the following benefits:

• 35% increasing word of mouth
• 28% increasing brand awareness
• 24% bringing new ideas into the organisation faster 
• 24% increasing customer loyalty

Other research is showing that over 6 out of 10 people who search for products or services say they are influenced by 'peer reviews'. Word of Mouth recommendations carry through to the bottom line.

When you also factor in the near 1/4 increase in customer loyalty you can see it online communities not only attract membership but help retain them.

Certainly the experience of Lego, Dell, HP, GM and others has shown that online communities are highly popular and self-sustaining and generate extra retained and new revenue.

Yet more research (via Podcasting News) indicating that traditional TV is now showing the same decline as traditional press as more and more people move online to consume news and entertainment.

For companies using press and broadcast media to advertise to the market they will need to start to seriously look at online content delivery. The global brands have already started to look at creating platforms targeting 'communities of interest' where people can interact with the brand and each other. This investment in 'customised communities' is bound to increase as traditional media continues to lose its audience. The loss of ad revenue can only speed this shift.

If you are still coming to terms with Web 2.0 and Social Media check out these great online slide resources...

What is social media? and The evolution of communication

Social media metrics

What should companies be doing? Taking at least 10% of their customer services, PR and marketing budgets and putting them 'on (the) line' to engage in the ongoing conversation. Ensuring all employees are fully up to speed on using social media (infact many are already doing so) to improve internal and external communications.

Jeremiha Owyang at Forrester Research has just blogged about a research report he has completed into Online Community Best Practices.

Here is the extract from the Executive Summary:

Online Community Best Practices
Communities Are A Powerful Tool, As Long As You Put Members’ Needs First

“An online community is an interactive group of people joined together by a common interest. It’s also one of the most powerful tools a marketer can deploy for customer retention, word of mouth, and customer insight. To host a successful community, think of it as you would product development: Start by focusing on objectives, chart a road map, assemble the right team, and plan to be flexible. Then build your success by launching the community with the backing of your most enthusiastic customers and staying engaged as the community grows. Above all, remember that control is in the hands of the members, so put their needs first, build trust, and become an active part of the community.”

Jeremiha was previously Community Marketing Manager at Hitachi and Social Media Consultant at PodTech before starting his role at Forrester. As such he has experience both from the corporate and research side. His report has drawn lots of comments - all worth reading. Check out his blog to see his summary and the comments of other consultants and practioners both from marketing agencies and companies.