What is the Community Flywheel?
The community flywheel is a powerful marketing strategy that focuses on building and engaging a strong brand community to drive sustainable growth. Unlike traditional marketing funnels, the flywheel model leverages the momentum of an actively engaged community to attract new members, creating a self-reinforcing loop.
McKinsey & Company has championed the community flywheel concept, outlining five key elements and five self-reinforcing marketing strategies that work together to set the flywheel in motion and accelerate brand growth.
The Five Elements of the Community Flywheel
1. Community focus: Target the community as a whole, not just individuals. Foster a sense of belonging and shared purpose among members.
2. Hero products: Focus on creating buzzworthy, standout products that generate excitement and conversation within the community.
3. Talkable and credible brand story: Be outspoken about your brand values and create a compelling narrative that resonates with your community.
4. Engaged and active community: Fuel the conversation by providing opportunities for members to connect, share, and collaborate. Encourage user-generated content and amplify community voices.
5. Effortless transactions: Remove all friction from the buying process, making it easy for community members to purchase your products or services.
Five Self-Reinforcing Marketing Strategies
1. Marketing in the metaverse: Embrace new digital platforms and experiment with innovative marketing approaches to engage your community in immersive experiences.
2. Agile acceleration: Use cross-functional teams to rapidly test, learn, and scale marketing initiatives. Continuously iterate based on community feedback and data insights.
3. Core marketing technology: Invest in the right tech stack to efficiently manage and analyze community interactions across multiple channels.
4. Measuring success: Reset profit-and-loss expectations and establish new KPIs that align with the community flywheel model. Track performance across all five elements of the flywheel.
5. Tracking performance: Monitor key metrics such as community growth, engagement rates, brand sentiment, and customer lifetime value to assess the impact of your community flywheel strategy.
Examples of the Community Flywheel in Action
Glossier: The beauty brand has built a thriving community of engaged fans by focusing on user-generated content, fostering conversations around their hero products, and maintaining a strong brand story around inclusivity and self-expression.
Peloton: The fitness company has created a passionate community of riders who connect through live classes, leaderboards, and social features. Peloton's effortless transaction process and continuous product innovation keep the flywheel spinning.
Lululemon: The activewear brand has built a strong community around fitness, yoga, and mindfulness. Through events, partnerships, and social media engagement, Lululemon encourages its community members to connect, share experiences, and embody the brand's ethos of healthy living and personal development.
LEGO: LEGO has leveraged its community of passionate fans, known as AFOLs (Adult Fans of LEGO), to co-create products, share ideas, and provide feedback. Through initiatives like LEGO Ideas, where fans can submit and vote on new set designs, LEGO fosters a sense of ownership and collaboration among its community members.
Starbucks: Starbucks has built a loyal community of coffee enthusiasts through its rewards program, social media engagement, and experiential marketing events. By offering personalized rewards, encouraging customer feedback, and creating inviting spaces for socializing, Starbucks keeps its community engaged and invested in the brand.
Implementing the Community Flywheel in Your Brand
To get started with the community flywheel strategy, consider the following steps:
1. Define your community focus and identify the shared values and interests that will bring your members together.
2. Develop hero products that generate buzz and excitement within your community.
3. Craft a compelling brand story that aligns with your community's values and aspirations.
4. Invest in community management and engagement strategies to foster active participation and collaboration among members.
5. Streamline your transaction process to create a seamless buying experience for your community.
6. Experiment with innovative marketing approaches, such as creating a brand community or leveraging community management strategies, to keep your flywheel spinning.
By embracing the community flywheel model and implementing these self-reinforcing strategies, brands can build lasting relationships with their customers, drive sustainable growth, and create a powerful competitive advantage in the marketplace.
