How Branded Communities Are Changing the Game for Businesses

As a brand, if you can provide your customers with products or services they love, they can more easily become invested in your success. They'll more likely wait in line for your store to open, leave positive reviews, and refer their friends. Some customers even form online groups to discuss products and how to use them. These loyal customers can provide valuable insights and marketing opportunities for a brand.

In today's market, brands are continuously trying to outdo one another. However, companies connecting with their customers through branded communities can be the ones that stand out most. Building communities around your brand can be a game-changing strategy that can significantly increase customer engagement, loyalty, and revenue growth.

Peloton: Merging Community with Commerce

Peloton charted an unprecedented course in the fitness industry when it launched in 2012, connecting customers with high-end exercise bikes, personable instructors, and each other. Today, with 7 million members, Peloton is known as a brand that offers connection, camaraderie, and “impactful and entertaining workout experiences for anyone, anywhere, and at any stage in their fitness journey," according to a press release.

Peloton’s members make up a vast branded community that is also a driver of Peloton's revenue model. Beyond the initial sale of equipment, Peloton has created diverse and recurring revenue streams through its memberships. Members pay a subscription fee to access exclusive features like live classes, interactive leaderboards, and opportunities to connect with other members – elements that continually reinforce the brand's value.

The Role of Instructors in Peloton’s Ecosystem

Peloton’s instructors are leaders within this community, transcending their roles as trainers to become influential brand ambassadors. Their relatable personalities and high-quality content shared across social media help bond the community and elevate the Peloton brand. This personal connection cultivates a large following and motivates members to stay with the brand.

Peloton's unique blend of immersive fitness and a vibrant, interactive community has redefined customer engagement.

LEGO: Co-Creation With Community

LEGO Ideas is one of LEGO's most popular branded communities, innovatively extending the company’s identity beyond a traditional toy manufacturer to a hub of creativity and co-creation. This unique platform encourages fans and designers to contribute their own LEGO set concepts.

In the community, members can propose and vote on new LEGO sets. This allows the company to tap into an immense resource of creative ideas and continually replenish its product range with fan-centric concepts.

Strengthening Brand Loyalty Through Emotional Engagement

LEGO Ideas fosters an intimate connection between LEGO and its enthusiasts. This emotional engagement is solidified as fans see their ideas come to life, deepening their loyalty to the brand. Over the years, various sets have gone to market, including the popular A-Frame Cabin, Red London Telephone Box, and The Orient Express. These creative expressions serve as a testament to the limitless possibilities within the LEGO universe and inspire others to share their ideas and creativity. 

Building communities around your brand can be a game-changing strategy that can significantly increase customer engagement, loyalty, and revenue growth.

By incorporating customer designs into its product lineup, LEGO has remained at the forefront of innovation and dominated the market. In fact, in 2023, LEGO outperformed its competitors, extending its market share globally.

Sephora: Unlocking the Power of Community Insights

The Sephora Beauty Insider Community is a dynamic, interactive platform and online brand community designed explicitly for beauty enthusiasts. It's a place where members can share their knowledge through tips, engage with one another by writing product reviews, and form meaningful connections by discussing their personal beauty journeys.

Gleaning Insights Through Engagement

As a key element of Sephora's customer engagement strategy, the Beauty Insider Community fosters open communication and robust participant involvement. This engagement allows Sephora to glean valuable consumer insights and feedback that can help guide the continuous refinement and development of its product lines and marketing tactics.

Sephora's emphasis on cultivating a vibrant and community-led environment bolsters its brand identity and helps drive revenue.

The Takeaway

The success stories of Peloton, LEGO, and Sephora show how active engagement, mindful listening, and ongoing adaptation can energize a brand. Marketing is always evolving, and branded communities are gaining prominence across various sectors due to their significant impact on customer engagement and the bottom line. As competition heightens, creating a solid branded community strategy could be the key differentiator brands need to stay ahead.

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