HBR On Strategy

How to Turn Your Customer Base into a Community

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Key takeaways

  • Building a community around your business creates long-term value that benefits both users and companies.
  • Company culture is shaped by everyday behaviors and leadership, especially in distributed teams.
  • Providing value without overly controlling user communities encourages genuine engagement and loyalty.
  • A successful freemium model relies on offering high-value free products with compelling paid upgrades.
  • Embracing future technologies like connected devices and practicing simple habits can enhance productivity and well-being.

Summary

The Importance of Community in Business Success

Matt Mullenweg emphasizes that community is at the core of what has driven the success of WordPress and Automattic. Building and nurturing a community of users, developers, and contributors aligns with long-term business health. He argues that acting in the best interest of the community ultimately benefits the company, even if it means earning less in the short term. This approach fosters loyalty, engagement, and sustainable growth.

Cultivating Company Culture During Growth and Distribution

Mullenweg discusses how maintaining a strong organizational culture is vital, even as the company scales and adopts a distributed workforce. He highlights everyday decisions—like exemplified behaviors and shared values—that influence culture more than perks like ping-pong tables. He advocates for leading by example, such as picking up trash or demonstrating commitment and integrity, which set standards for employees regardless of their location.

Building and Maintaining Community Around Products

The conversation explores how companies can successfully foster user communities without sacrificing control. Mullenweg likens hosting a community to throwing a party where providing snacks and a welcoming atmosphere encourages participation. WordPress’s strategy includes offering high-value free software and giving community members room to contribute, which builds trust and loyalty.

The Freemium Model and Monetization Strategies in the Internet Era

Mullenweg describes how WordPress uses a freemium approach—offering free, high-quality software and charging for premium features like VaultPress, a backup service. He explains that the model depends on delivering enough value in free offerings to attract users, while premium features provide revenue. The discussion also touches on broader strategies involving advertising, emphasizing that reliance solely on ad revenue is risky given market changes.

Future Technologies and Personal Productivity Practices

Looking ahead, Mullenweg talks about connected devices and ambient technology, which may improve everyday environments and reduce dependence on screens. He shares personal productivity experiments, such as practicing tiny habits and deep breathing exercises to enhance focus and well-being. These habits aim to maintain mental clarity and improve overall happiness and effectiveness.

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Show notes

”Community” is a buzzword that gets thrown around a lot in the business world. But what does it really mean to build one—and what does it take to make it last? More importantly, how can businesses create communities that drive long-term success? Matt Mullenweg, the cofounder of WordPress and the founder and CEO of Automattic, tackles these questions in this episode. He shares insights on fostering community within a firm—like hiring the right people through auditions instead of resumes—and within a customer base by encouraging engagement and feedback.

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