Academic journal article The McKinsey Quarterly

On-Line Communities Pay. (Snapshot)

Academic journal article The McKinsey Quarterly

On-Line Communities Pay. (Snapshot)

Article excerpt

A lot of myths have been debunked since the Internet bubble burst. But it turns out that a cherished (though previously untested) principle--that on-line communities can be profitable for consumer World Wide Web sites--may actually be true: our study of 17,000 Internet user sessions suggests that chat rooms, bulletin boards, product reviews, and similar community features do create value. The study reflects Internet usage in 2000, but in follow-up interviews conducted during October 2001 industry insiders confirmed the validity of the original findings: on-line communities, which continue to be strong, are an important element of success on the Internet.

Community users accounted for about one-third of the visitors to the e-tailing sites studied but generated two-thirds of all sales--some 2,000 on-line transactions, worth an estimated $1 million. And as the exhibit shows, more is better: the more actively people use an on-line community, the more they tend to visit the site that maintains it and to buy goods and services there. With e-commerce revenues expected to reach $178 billion by 2003, on-line communities represent an important opportunity, but an opportunity that is largely untapped: only one of the top ten apparel sites offers community attractions, and only two of the top ten general merchandisers do so.

Shona Brown is a principal in the Los Angeles office, where Andrew Tilton and Dennis Woodside are consultants.

                                Visit frequency, Q2 2000, average
                                     number of user sessions

Users of community features
  Contributors                                 7. … 
Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.