Calculations for a Communities Business Case

Hi everyone - new here and this is my first post. There are so many great resources on here!

I am putting together a business case for a large organisation for a new online customer community, focussed on supporting small business. The organisation like many others is driven by financial benefits and I have been asked to calculate the potential benefits of a community over 5 years for:

  1. Discoverability / SEO as a dollar saving over 5 years
  2. Impact on Brand Impact (advocacy, engagement)
  3. Impact on Retention or Churn
  4. Call deflection

Does anyone know if any formulas or calculations that I can use to determine the above?

Thanks!

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Hi, @rachy_d! I don’t know if it covers all the use cases you mention, but here’s an advocacy ROI calculator from Influitive (where I work, full disclosure): https://influitive.com/advocacy-calculator/

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Thanks! Will check it out today.

The impact on retention or churn can be calculated without any formula. Take a look at the retention/churn numbers before launch of the community and then compare that with numbers post launching the community. In this case, you will have to assume a reasonable %age for retention or churn since the community has not yet launched.

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Hi @rachy_d I’d begin with the formulas at www.feverbee.com/ROI

You might also benefit from this talk: https://vimeo.com/307511135

You can skip the first few minutes.

Some of these are easy to calculator (call deflection) others (discoverability) are less so.

Some of them are overlapping and you’re prone to double counting.

For discoverability, you need to know the value of a visit (i.e. how many visits to sales or conversion rate). Then you can track search traffic and make a reasonable calculation.

The problem isn’t really calculation but estimation here. It varies so much by community there isn’t really an honest way to calculate it in the way you’re approaching it here.

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