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The PESO Model and the Power of Communities in Modern Brand Building

6 min read
Community BuildingPESO ModelBrand Strategy

One of my guilty pleasures (well, educational guilty pleasures) is watching business podcasts about how brands are built. I treat them like case studies. Recently, I came across an Indian podcast on the rise of new beauty brands, and one insight really stuck with me: the central role of community in scaling modern businesses.

When I thought about it more, I realized this isn't unique to Indian startups. Global brands like Rhode, Rare Beauty, and Skims have mastered the art of creating communities that don't just buy, they belong. Their audiences aren't passive consumers. They are active participants who interact, share, and amplify the brand story.

How I Connected This to the PESO Model

Community-building intersects multiple components of the PESO model:

Shared Media

Community thrives on platforms like Instagram, TikTok, and X, where conversations, hashtags, and UGC create a sense of belonging. Rare Beauty frequently reposts fans' makeup looks, encouraging a culture of sharing. Rhode's iconic phone cover was an "IT GIRL" trend made accessible.

Earned Media

A loyal community often becomes your best PR. Word of mouth, organic testimonials, and influencer mentions act as powerful credibility drivers. This is particularly true for D2C brands in the beauty and lifestyle spaces.

Owned Media

Newsletters, private Discord groups, or branded communities give the brand a direct line of communication with its audience, outside algorithmic control.

Interestingly, Paid Media often plays a supportive role here, not to push products, but to introduce new members into the community funnel. Targeted ads might bring someone into a free online event or campaign that nudges them toward community participation.

How Brands Orchestrate Community

Building a community isn't about just setting up a page and posting regularly. It requires intentional orchestration, such as:

Hosting events (online or offline) that make participants feel valued. Think exclusive product previews, intimate creator meetups, or themed experiences where every detail is thoughtfully planned.

Creating spaces for peer interaction, not just brand-to-audience communication. Rhode's customers interact with each other in comment sections, and Skims fans often create trend videos that inspire others.

Rewarding engagement, spotlighting community members, offering loyalty benefits, or giving early access builds reciprocity.

Storytelling that invites participation. Instead of one-way marketing, community-driven campaigns ask audiences to share their stories, co-create content, or adopt brand hashtags.

Why Community = Growth Engine

The most powerful thing about communities is that they turn Shared into Earned media almost effortlessly. When people feel like they belong, they naturally advocate, which reduces CAC, boosts retention, and builds trust faster than traditional ads.

What's even more compelling is that community-driven audiences are often less price sensitive. Their loyalty goes beyond the product itself. They're buying into the brand ethos, the shared identity, and the sense of belonging. This makes them more resilient to competitor discounts and more likely to repeat purchases over time.

In many ways, community is the bridge between PESO elements. Paid brings people in, Owned provides a home base, Shared amplifies, and Earned cements reputation.

My Reflection

This made me realize that community is not a "nice to have" anymore. It's a marketing strategy in itself. For brands, especially startups, leaning into community early can help them compete with established players without relying on massive ad budgets.

I'm now curious: as marketers, how can we measure the ROI of community-building efforts effectively? Traditional metrics like engagement rates don't fully capture loyalty or advocacy. That's something I'd love to explore further in future posts.