Direct-to-consumer (DTC) brands are expected to drive over $226 billion in retail sales for 2025 (Statista).
DTC brands sell directly to customers, cutting out the “middleman,” or third-party retailers and wholesalers. Eliminating this blockage allows those brands to establish direct relationships with consumers and power a loyal community. With the rise of social media usage and online shopping, online community engagement has become the foundation of successful DTC strategies.
In this blog, we’ll explore the power of online community engagement, its benefits for DTC brands, and community engagement techniques to help you build a thriving, loyal customer base.
Data of Total Projected DTC E-commerce Sales in Billions YoY (Statista, 2025)
What is Online Community Engagement?
Online community engagement refers to a virtual community of customers actively interacting through digital platforms, fostering a meaningful relationship between them and the brand. Unlike traditional marketing, which focuses on one-way communication, community engagement is about creating a two-way dialogue where customers feel heard, valued, and engaged in something bigger.
For DTC brands, this means going beyond transactional relationships and focusing on engagement & community building.
+Learn more: How to Build a Successful Online Community
Online Community Engagement Works Because It
1. Builds Trust and Loyalty
Brands actively engaging within their communities show customers that they care about more than just sales, building emotional connections and fostering long-term loyalty.
2. Drives Customer Retention
Engaged customers are more likely to stick around. Increasing customer retention rates by just 5% can boost profits by 25% to 95% (HBR).
3. Encourages Word-of-Mouth Referrals
Given a platform to manage an ambassador community, DTC brands can turn loyal customers into brand advocates who spread the word organically. This simultaneously builds credibility and reduces customer acquisition costs.
4. Provides Valuable Customer Insights
Grow alongside your brand community with two-way communication. Brand rewards engagement and ambassadors provide valuable feedback. This relationship helps identify pain points, improve products, and tailor your offerings to meet customers’ needs.
UGC is the Most Powerful Tool for Community Engagement
Most successful brands leverage user-generated content (UGC) on different social media accounts to establish a connection to their targeted audience. Understanding your demographics and planning effective UGC is the most important task when it comes to engagement and community building.
Start planning your content ahead of time to maximize reach and make your brand stand out! Download our free 2025 UGC Calendar for Ambassadors!
What is UGC?
User-generated content is any form of customer-made content shared on a social media platform. Consumers are 77% more likely to buy products found through UGC (Bazaarvoice).
Originally, influencer marketing was the strategy to gain traction for a brand, using influencers’ large followings as a vessel to connect with potential customers. However, branded content through a well-known figure is inauthentic, which discourages the buyer’s decision.
By harnessing the power of loyal customers and fans, brands can promote UGC that are authentic, engaging, and fresh. At the core, humans crave connections and relatability, and what’s more perfect than an online community where brands can engage with their customers’ and fans’ content–all in one place.
+Read more: How to Find Ambassadors for Your Brand
3 Tips To Maximize Online Community Engagement Through UGC
- Create a Branded Hashtag Campaign
- Simple yet effective way to gain specific traction to your brand
- By creating a unique hashtag, you make it easy for customers to share their experiences and find content related to your brand.
- Run UGC Contests and Challenges
- Fun way to incentivize UGC
- By offering rewards or recognition, you can motivate your audience to participate actively.
- Showcase UGC on Your Platforms
- Provides motivation for brand ambassadors as they see their posts featured on the official brand pages
- By showcasing UGC on your social media, website, or email newsletters, you validate your ambassadors’ efforts
UGC is a game-changer for online community engagement. By creating branded hashtags, running contests, and showcasing customer content, you can turn your audience into active participants and brand advocates. These community engagement techniques not only boost loyalty but also drive organic growth for your DTC brand.
Pro Tip: Don’t just collect UGC—engage with it! Like, comment, and share posts from your community. A simple “Thank you!” or “We love this!” can go a long way in building relationships and encouraging ongoing participation.
Dormify’s Winning Strategy: Engaging the Community of Student Ambassadors
DTC brand, Dormify, expresses their concern in building an authentic community around their brand more efficiently while managing the seasonality of college “move-ins.”
After partnering with SocialLadder, Dormify’s ambassador program was transformed. They had full ownership of their ambassador program, allowing them to customize the experience without losing their brand’s identity.
+Read more: Dormify’s $760K Success
SocialLadder’s ambassador marketing platform offered better:
- Reporting (valuable key metrics for growth)
- Segmentation
- Full automation in many program’s processes (i.e. feedback collection)
In just one year, Dormify saw significant success with their revamped ambassador program:
- $760,737 in revenue generated by the ambassador program.
- Over 3M impressions across social media.
- A growing community with nearly 4k joined ambassador
Future Trends in Online Community Engagement for DTC Brands
For DTC brands, staying ahead of the curve means embracing emerging trends and technologies that can deepen connections with their audiences.
Here’s a look at what’s in store for the future of engagement & community building:
- Immersive and Hybrid Virtual Experiences
- Connect more naturally in virtual environments through virtual reality (VR) or augmented reality (AR)
- Host virtual events, such as product launches or workshops, in VR spaces where customers can interact in real-time, replicating in-person interactions (socialpinpoint)
- Hyper-Personalization for Loyal Fans and Customers
- Feel more involved through loyalty programs that incentivize based on each customer’s unique interests
- More micro-communities within their larger audience, catering to specific interests and demographics
- Connect Deeply to Niche Communities
- Essential to build hyper-local communities to connect with customers in specific regions or cities
- Opportunities to build premium community experiences (i.e. VIP groups for top performers) to deepen engagement with their most loyal customers
By embracing these key strategies, you can create a thriving, engaged community that not only supports your brand but also drives its growth. Strengthen your community by growing with them–it is a team effort!
SocialLadder’s Blueprint for Brands To Build An Online Community
A brand’s success is not measured by the product they sell, but rather, the community they engage. The most powerful and influential brands harness the power of communities to create an authentic and inspiring space for loyal fans and customers.
SocialLadder understands how important it is for brands looking to grow through active engagement with customers. From starting to managing the ambassador program, we can be your guide to a strong and vibrant community.
Ready to harness the power of an online brand community?
Start by listening to your community, celebrating their contributions, and creating opportunities for them to shine! Your engaged community is the greatest asset for success.
