Absolutely. We’re seeing a significant shift in how Australian SMEs can improve customer retention, and building a genuine community around your brand is proving to be a powerful strategy. It’s no longer enough to simply deliver a product or service; customers now crave connection and belonging. Focusing on community isn’t just ‘nice to have’ – it’s becoming essential for sustainable growth.

For years, retention marketing centred on loyalty programs and personalised email campaigns. These still have a place, but they often feel transactional. Community building, on the other hand, fosters emotional connections. When customers feel like they’re part of something bigger than just a purchase, their loyalty deepens. This translates directly into higher lifetime value and reduced churn.

Here are a few key insights we’re observing with our clients:

• Reduced Acquisition Costs: A strong community acts as a powerful word-of-mouth engine. Happy community members become your advocates, organically attracting new customers and lowering your reliance on paid advertising.
• Increased Customer Lifetime Value: Engaged community members are more likely to make repeat purchases and explore other offerings. They’re also more forgiving of occasional hiccups, understanding you’re invested in their experience.
• Valuable Feedback Loops: Communities provide a direct line to your customers. You gain invaluable insights into their needs, pain points, and desires, allowing you to refine your products, services, and marketing messages. This is far more effective than relying solely on surveys or analytics.
• Enhanced Brand Resilience: In a competitive market, a strong community provides a buffer against competitors. Customers connected to your brand on a personal level are less likely to switch simply for a slightly lower price.

The platforms you use to build this community can vary – Facebook groups, dedicated forums, even regular online events. The key is authenticity and providing genuine value. Don’t just broadcast marketing messages; facilitate conversations, encourage peer-to-peer support, and celebrate your customers’ successes. We anticipate that businesses prioritising community in 2026 will see a noticeable advantage in customer retention metrics compared to those who don’t.

If you’re serious about improving retention, we recommend starting small. Identify your ideal customer and create a space where they can connect with each other and with your brand. Focus on fostering meaningful interactions, and the results will follow.