Longing to Belong: How Brands can build Loyalty through Communities
From the network of support to the steadying sense of identity, being part of a tribe goes a long way to offset the turbulence-as-usual that now defines our lives. New research from an FSC white paper shows that leveraging this power of community has become the critical factor for brands to build customer loyalty and through this business growth.
Introduction
Brand communities are not new: back in 2001, consumer behaviour experts Albert Muniz and Thomas O’Guinn introduced how the social construct of community is applied to modern marketing culture. Savvy businesses have been using the notion of a shared set of values and a sense of belonging to great effect for some time. Now, though, brands have unprecedented access to the proliferation of organic and dynamic online meeting spaces, filled with conversations between and feedback from real customers – and every brand has the opportunity to capitalise on this shift in customer consciousness.
In our new white paper, Finding Your Tribe: How Businesses Can Harness the Power of Community-Led Growth, FSC found that committing fully to a truly open dialogue with your customers is as important as the establishment of the community itself. And most of all, that not creating a brand your customers can feel part of is a surefire way to lose market share.
The what, why and how of community-led growth
““A brand community isn’t about selling – it’s about building lasting relationships that create value for both the business and its supporters… It’s a social contract with your customers.””
Customers today crave more than just products or services: they want authentic connections and shared purpose.
A brand community answers this need, by creating a space where customers feel they belong – where they are seen and heard, have real input into the direction of the brand’s future, and can interact with likeminded people sharing their passions and values. From the brand’s point of view, they are fostering loyalty, generating innovative new ideas, and nurturing a group of true advocates.
At its core, a brand community isn’t about selling – it’s about building lasting relationships that create value for both the business and its supporters. Mark Schaefer, author of the bestselling Belonging to the Brand: Why Community is the Last Great Marketing Strategy and one of the experts FSC interviewed for the white paper, underscores the shift: “A brand community is a commitment – not just a marketing strategy. It’s a social contract with your customers.”
““For younger audiences, digital spaces owned by the brand – such as Sephora’s Beauty Insider platform – are highly effective, whereas older generations tend to prefer independent forums. By understanding where your audience naturally congregates, you can meet them on their terms.””
The landscape is ripe for this change in approach. Consumers are increasingly drawn to brands that reflect their values and invite participation, with recent research from TINT revealing an enormous 97% of consumers stay loyal and purchase more frequently when they feel that a brand listens to them, and 91% (an increase of more than 20% from the year before) are more likely to leave a review if they feel part of a brand community.
The old playbook no longer applies. Businesses are adapting to seismic changes, from flexible post-pandemic work models to the rise of AI. In this state of flux, community-led growth offers a unique opportunity to create stability.
The building blocks of a brand community
Our white paper draws on the expertise of leading figures in the world of brand communities – as well as Mark Schaefer, we spoke to Ash Schofield, CEO of giffgaff, widely regarded to have created the gold standard for a successful, sustainable brand community – as well as the insights of over 500 consumers to understand what drives brand loyalty and community membership across different demographics. We found that there were several crucial elements for a thriving brand community:
Define and Communicate Shared Values: Consumers gravitate toward purpose-driven brands. Research bears out that businesses prioritising sustainability and social impact see greater growth and customer retention. Take Patagonia, whose commitment to environmental responsibility resonates deeply with its audience. The alignment of brand and customer values creates a sense of belonging.
Choose the Right Platform: The ‘town square’ of communities varies by demographic. For younger audiences, digital spaces owned by the brand – such as Sephora’s Beauty Insider platform – are highly effective, whereas older generations tend to prefer independent forums. By understanding where your audience naturally congregates, you can meet them on their terms.
Embrace Mutuality: Effective communities operate on a give-and-take principle. For instance, giffgaff’s members provide customer service and product feedback, creating a symbiotic relationship. This co-ownership fosters deeper emotional investment, as members feel directly connected to the brand’s success.
Finding where you fit – and being brave enough to evolve
Every community is unique, but our research allowed us to understand the types of tribes that brands typically fit into. We categorised them into four ‘compass points’:
Passion-Based: Tied to hobbies or interests, like GoPro enthusiasts.
Lifestyle-Led: Aligning with shared lifestyles, such as Harley-Davidson riders.
Skill-Sharing: Centred on knowledge exchange, as seen with Sephora.
Value-Driven: Built on shared ideals, like Patagonia’s focus on sustainability.
Understanding where your brand fits is essential for creating a space that resonates deeply with your target audience.
““Bravery also means letting your community guide decisions. Whether through feedback or co-creation, empower members to shape the future of your brand.””
Building a community requires bravery and long-term commitment. Allowing customers to voice criticism can be uncomfortable, but it’s essential for growth. As giffgaff CEO Ash Schofield puts it, "Once you’ve got a community, people are going to say bad things. It’s better they say it to your face so you can respond and learn."
A successful community strategy needs company-wide buy-in. It’s not just a marketing initiative: it’s a cultural shift that requires genuine engagement and cross-departmental alignment, all geared toward the needs of the consumers within your community.
Bravery also means letting your community guide decisions. Whether through feedback or co-creation, empower members to shape the future of your brand.
Where we go from here
For brands ready to take the leap, the potential is immense. Community-led growth not only drives customer retention but also serves as a rich source of innovation and advocacy.
Those willing to invest in authentic community-building today may find themselves leading the charge tomorrow.
Discover all the insights and dive deeper into brand communities in FSC’s full white paper, available here.