How Community Building Is Changing the World of Business

Lauren Perkins, in The Community Manager’s Playbook, says it plainly:

“Community management is undergoing the same revolution experienced by branding.”

Branding was once considered “fluff,” until companies realized it was the difference between Coca-Cola and a generic soda. Now, community has taken the baton—only this time, it’s moving even faster. In this article we'll explore how community building has become the go-to for businesses in this digital age.

From Transactions to Relationships

Before now, business used to be simple: advertise, sell, repeat. Customers were statistics, not humans. But the digital age changed everything. Now people crave more than just products—they want belonging and that is the gap community is bridging.

A Nielsen report showed that 92% of consumers trust recommendations from peers over traditional advertising. Perkins, my community mentor captures this shift perfectly: “The days of push-marketing are over. The digital age has turned marketing into a two-way conversation.”

Take Nike for instance, they didn’t just sell sneakers. They built Nike+, a global network of runners united by shared identity and goals. Every logged mile deepens the emotional tie between the runner and the swoosh. This drives community loyalty which isn’t new, it’s just gone digital now, and infinitely scalable.

So, Stop chasing transactions. Start building relationships. Customers who feel they “belong” will stick with you long after the promo code expires and that is worth more.

Communities Create Tangible Business Value

Here’s where the skeptics perk up: “But can you prove it’s worth the investment?” Yes. Community isn’t just kumbaya; it’s ROI on steroids. Here are five key levers to monitor:

Customer feedback → product innovation: Why hire expensive consultants when your community will happily tell you what to build (or fix)? Think of them as your live focus group, available 24/7. Also, the broader the community, the wider the scope of their reasoning and collective intelligence.

Pain points → innovation opportunities: Every rant on your forum, page or platform is a roadmap for improvement. Solve those problems, and you’ve got your next winning product. This is not just a product that demands market testing but a product with ready users.

Relationships → retention: Loyalty born from community outlasts loyalty born from coupons. Yes, that, it doesn't mean coupons are not great. They're just not sustainable. Retention is cheaper than acquisition, know this and your CFO will thank you.

Touchpoints → purchase intent: Every interaction, whether it is on forums, events, Discord chats or brand built chat nudges a customer closer to buying again. It is far better than the generic buy now on ads and resonates more with customers.

Internal engagement → productivity: Employee communities slash churn by boosting morale and knowledge sharing. As Perkins notes in her book, “By reducing human resources churn, community managers can actually increase bottom line earnings by driving down recruitment and training costs.”

So, In short communities don’t just “feel good.” They add zeros to your bottom line.

Community as a competitive advantage

Today, technology has levelled the playing field. Anyone can launch a product today with a Shopify store and a TikTok account. The real differentiator isn’t the product anymore, it’s the people around it. The people around a product or brand can either make or brake it. Brands can now get cancelled easily for going against the wishes of their community or customers.

Consider these examples:

Lululemon’s cautionary tale:

Their “cult-like yoga community” once fuelled massive growth. But when founder Chip Wilson dismissed customers’ body types, the backlash was swift, public, and costly. Proof that disrespecting your community is like sawing off the branch you’re sitting on.

Community is both shield and sword. Get it right, and your customers become evangelists. Get it wrong, and they become your loudest critics.

Cracker Barrel’s Logo Backlash:

A recent example, is in august 2025, Cracker Barrel rolled out a minimalist logo, dropping its iconic “Uncle Herschel.” The reaction? Instant uproar. Customers called it bland, political critics dubbed it “woke,” and the stock fell 7% in a day. Within a week, and after pressure from fans and even US President Donald Trump, the company backtracked, restoring its classic logo.

Lesson, ignore your community, and they won’t just complain—they’ll make you reverse course or loose massively.

In conclusion, community is no longer the sidekick, it’s the headline act of modern business. It now fuels innovation, reduces costs, increases loyalty, and builds resilience. Ignore it, and you’re building a business on quicksand.

So, ready to stop watching from the sidelines? Join the Community Builder Community - a space where founders, strategists, and community geeks (yes, proudly) share tools, strategies, and a vision for making businesses more human.

Don’t just sell anymore. Belong. Build. and Lead.

My name is Buezor Michael, Community & Social Media Manager, with years of experience. I love creating contents and growing communities across multiple channels.

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