Developing Online Communities for Brands in Web3 & Blockchain Space

The Importance of Effective Community Management

So I have not been able to write a lot in this month due to a lot of personal issues. I must apologize to my new followers for my brief inactivity. As I was thinking what I could write on to resume the writing spree I had on Medium last month, I was thinking I’d talk about something from my professional experience. As many of you know I run the digital marketing, content generation and community management agency Blockbaroners.com — So today I’ll talk about what I do for a living, Community management and development and how the entire sector is about to change thanks to AI.

Communities in the Web3 Space

Just about 10 years ago, the term community manager would probably be limited to field managers who would work within their local communities driving up sales, maintaining the brand’s customer acquisition costs (CAC) and the Lifetime-Value (LTV) of a loyal customer. Brands would spend wisely on making sure their local customers experiences were shared among other customers and would be customers by creating a sense of community.

Fast forward to today, the game has completely changed and Community Management has taken on a whole new level of identity as one of the leading non-tech jobs in an otherwise tech-heavy sector.

In the fast-growing world of Web3 and crypto, building and managing online communities has become an essential part of a brand’s success. The emergence of social media platforms and messaging apps has made it easier for brands to connect with their customers and engage with them in real-time. However, managing online communities is a challenging task that requires the right set of skills and tools. In this article, we will focus on the role of community managers in developing online communities for brands in Web3 and crypto space. We will also explore how Natural Language Processing (NLP) and Generative AI can help community managers in their job.

The Role of Community Managers

A community manager is responsible for building, managing, and growing an online community for a brand. They are the face of the brand and act as a bridge between the brand and its customers and sometimes this would involve subordinate chat moderators. The Community Manager’s job is to create a positive image of the brand and engage with customers in meaningful ways. Community managers work closely with a team of chat moderators who help them manage the community.

Here are some of the key responsibilities of community managers:

1. Building and Growing the Community: Community managers are responsible for creating a welcoming and engaging environment for customers. They use various tools and strategies to attract new customers and retain existing ones. This includes creating engaging content, organizing events and giveaways, and responding to customer queries and feedback.
2. Managing the Community: Once the community is established, community managers need to ensure that it runs smoothly. This involves moderating conversations, enforcing community guidelines, and handling conflicts. They work closely with a team of chat moderators to ensure that the community is safe and enjoyable for everyone.
3. Analyzing Community Data: Community managers need to keep track of various metrics to understand how the community is performing. This includes tracking engagement rates, sentiment analysis, and customer feedback. Based on this data, community managers can identify areas of improvement and make data-driven decisions.

NLP and Generative AI in Community Management

Community managers need to manage a large volume of conversations and interactions in real time. This can be overwhelming and time-consuming. To manage the community efficiently, community managers can leverage NLP and Generative AI.

Here are some of the ways in which these technologies can be used:

1. Automated Moderation: Chat moderators can use NLP algorithms to automatically detect and flag inappropriate content. This can save moderators a lot of time and effort and ensure that the community guidelines are enforced effectively.
2. Sentiment Analysis: NLP can be used to analyze customer feedback and understand their sentiment towards the brand. This can help community managers identify areas of improvement and respond to customer feedback in a timely manner.
3. Chatbots: Community managers can use Generative AI to create chatbots that can respond to customer queries and provide basic information about the brand. This can reduce the workload of community managers and provide customers with quick and accurate responses.

Challenges in Community Development and Customer Retention

Building and managing online communities for brands in Web3 and crypto space is an essential part of a brand’s success. Community managers play a critical role in creating a positive image of the brand and engaging with customers in meaningful ways and they are the key people to make sure that an acquired customer has the best experience and stays loyal to the brand. They work closely with a team of chat moderators to ensure that the community is safe and enjoyable for everyone. To manage the community efficiently, community managers can leverage NLP and Generative AI. These technologies can help them automate moderation, analyze customer feedback, and create chatbots. By using these tools, community managers can save time and effort and provide customers with a better experience.

Community development and customer retention are two important aspects of business growth that go hand in hand. A strong and engaged community can lead to higher customer retention rates, which can, in turn, lead to increased revenue and brand loyalty. However, community development and customer retention can present several challenges that businesses need to overcome to succeed.

I myself have faced some of these challenges, so let me illustrate their impact through some bare basic statistics.

1. Keeping up with the pace of change
   The web3 and crypto space are rapidly evolving, and new technologies, platforms, and communities are emerging all the time. As a result, businesses need to keep up with the latest trends and adapt their strategies accordingly. According to a survey by HubSpot, 46% of marketers believe that keeping up with technology advancements is the biggest challenge they face in community management.
2. Attracting and Retaining Members
   Building a community is not easy, and attracting and retaining members can be a major challenge. A study by CMX found that 65% of community managers struggle with member acquisition, while 60% struggle with retention. Furthermore, the same study found that only 29% of community members actively engage with the community, which highlights the difficulty of keeping members engaged.
3. Managing Community Dynamics
   As communities grow, managing community dynamics can become increasingly complex. This includes managing conflicts, dealing with trolls and moderating content. According to a survey by Sprout Social, 60% of consumers have witnessed brand bullying online, and 86% believe that social media platforms should do more to combat bullying and harassment.
4. Maintaining authenticity
   As I mentioned earlier, authenticity is crucial in community development and customer retention. Consumers are more likely to engage with a brand that they perceive to be authentic and transparent. However, maintaining authenticity can be challenging, especially as communities grow and become more diverse. According to a study by Stackla, 86% of consumers believe that authenticity is important when deciding which brands to support, and 57% are more likely to buy from a brand that they perceive to be authentic.
5. Balancing Automation and Human Interaction
   As communities grow, businesses may turn to automation to manage community engagement. While automation can be effective, it can also lead to a loss of authenticity and human interaction. According to a survey by Sprout Social, 79% of consumers prefer talking to a human customer service representative rather than a chatbot, and 75% believe that brands should use technology to improve the customer experience, not replace it.
6. Ensuring Data Privacy and Security
   In the web3 and crypto space, data privacy and security are of utmost importance. With the increasing prevalence of data breaches and cyberattacks, businesses need to ensure that their community platforms are secure and that member data is protected. According to a study by Cisco, the average cost of a data breach is $3.86 million, which highlights the importance of data privacy and security.

The Solution — Self Promotion

No! I am not asking it to do it yourself, I’m asking you to let me help you and your brand. I am thrilled to share with you a new tool under development at my agency Blockbaroners.com that is set to revolutionize the world of community management: SummarizeGPT

For a while, I did not know what to name this tool so ended up unofficially calling it CMAI. This changed when I saw a Linkedin post detailing some aspects of what a potential tool with quite similar functionalities would look like and et voilà! SummarizeGPT was rechristened!

With its state-of-the-art artificial intelligence technology, SummarizeGPT is designed to help businesses keep up with the pace of change by automatically summarizing the latest trends and insights from a variety of online sources including their online communities.

Attracting and retaining members is also made easy with SummarizeGPT. Its unique features make it effortless to engage with your community and keep them hooked with fresh content.

SummarizeGPT simplifies managing community dynamics, providing advanced tools for conflict resolution, moderating content, and dealing with trolls.

And when it comes to authenticity, SummarizeGPT has got you covered. With its intelligent algorithms, the tool ensures that your brand’s voice and messaging remain consistent and authentic, even as your community grows.

Balancing automation and human interaction is a breeze with SummarizeGPT. Its powerful automation features is being designed to allow you to manage your communities across different platforms more efficiently while still maintaining that all-important human touch.

SummarizeGPT is being built with data privacy and security as top priorities. The tool provides robust security measures to safeguard your community’s data and ensure that your platform is safe and secure from cyber threats.

In short, SummarizeGPT is the ultimate community management tool that can help businesses overcome the challenges they face in community development and customer retention.

Keep following me for more on SummarizeGPT soon! And that was the self-promotion.

Good Management vs Bad Management

Good management practices can make all the difference in building a strong and engaged community. As we have seen, community development and customer retention present several challenges that businesses need to overcome to succeed. However, with the right strategies in place, these challenges can be turned into opportunities.

As a community manager with over 40 projects under his belt, I can vouch for one thing — Authenticity!
An important mark of good management practice is to maintain brand authenticity. Consumers are more likely to engage with a brand that they perceive to be authentic and transparent.

I have had the misfortune of working with some very flaky projects that constantly update their roadmaps and adjust their development and marketing according to market trends. This always ended up harming these projects! Recession or bear markets are crucial for development. Whether it’s the product that the brand is selling or the community (audience) it is selling to.

This means being honest with your community members, listening to their feedback, and addressing their concerns. It also means being true to your brand values and staying consistent in your messaging.

Another key aspect of good management is human interaction. While automation can be effective, it should never come at the expense of authenticity and human connection. Businesses should strive to provide their community members with a personalized experience that shows they are valued and appreciated.

Good management also means being proactive in addressing conflicts and moderating content. This includes setting clear community guidelines and enforcing them consistently. It also means being responsive to feedback and taking action when necessary to address any issues that arise.

On the other hand, bad management practices can lead to disengaged community members, negative brand perception, and even legal trouble. Ignoring community members, failing to address concerns, and engaging in unethical behavior can quickly turn a thriving community into a toxic one.

Building a strong and engaged community requires good management practices that prioritize authenticity, human interaction, and proactive conflict resolution. By following these principles, businesses can not only overcome the challenges of community development and customer retention but also create a loyal customer base that will drive their success for years to come.

With that said, if you need community development consultation, feel free to reach out to me logan@blockbaroners.com and I’d be more than happy to help you! Stay tuned for my next article where I’d be talking about similarly interesting stuff!