Is Building a Community Necessary Today?

Let's look at what Shipt say

Read Time: 8 minutes 30 seconds

Let’s be real! Most businesses obsess over growth at all costs.

More users. More sales. More expansion.

But here’s what no one tells you: If people don’t feel connected to your brand, they will leave the moment a better offer comes along.

I have seen this happen over and over again. Startups burn cash on ads, slash prices to beat competitors, and chase rapid expansion.

And yet, they struggle to keep customers and workers around.

That’s why community is the ultimate growth hack.

Shipt understood this better than most. Instead of competing solely on speed, pricing, or convenience, it focused on trust, relationships, and belonging - things most companies ignore.

And that’s why it became a powerhouse in the gig economy while others faded away.

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The Big Idea:

Community in a Cutthroat Market

Most gig economy platforms treat workers like numbers - just another driver or shopper. Take Uber, Instacart, and DoorDash, for instance.

They have all been criticized for lacking personal connections with their workers. But Shipt went the other way.

Instead of focusing only on efficiency, it invested in relationships with shoppers (the people delivering) and customers (the people ordering groceries).

While this might seem nice for the general public, it was the wisest idea in the business world. Because when people feel valued, they stick around. And when they stick around, you get higher retention, better service, and more referrals.

So, how exactly did Shipt pull this off?

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Behind the Magic:

Marketplace? Nope. Community? Yes

In business, it’s easy to obsess over customer acquisition - lowering costs, increasing conversion rates, and scaling as fast as possible.

But here’s the real question: How do you get people to stay?

The gig economy is one of the challenging markets for retention. Workers switch between platforms, and customers jump ship for better deals.

So why did Shipt succeed while so many others struggled?

Because it didn’t just build a service but a community.

Now, this was a strategic move. And what made this approach so powerful?

1. Built a Tight-Knit Shopper Community

Most gig platforms treat their workers as disposable assets - easy to replace and not worth investing in. Shipt saw things differently.

They understood that happy, engaged shoppers deliver better service. And better service leads to higher retention and word-of-mouth growth.

Instead of simply onboarding thousands of gig workers, Shipt focused on:

  • Vetted shoppers carefully instead of letting anyone sign up. So, their average shopper tenure is 14 months (vs. the industry average of 3-4 months), while 4.8/5 is the average customer rating for vetted shoppers.

  • Created exclusive Facebook groups so shoppers could support each other. Check out this Facebook community with 160K+ members.

  • Offered perks for top-performing shoppers to make them feel valued.

This sense of belonging changed the entire dynamic. Shoppers weren’t just working for Shipt. They felt like they were working with Shipt.

And when people feel they belong, they are far more likely to stick around (even when competitors offer higher payouts). Therefore, 78% of shoppers reported feeling "part of a community."

Better service → Happier customers → Higher retention.

2. Made Customers Feel Like Insiders

Most gig services work as faceless, transactional platforms. You place an order, a driver shows up, and the relationship ends there.

Shipt turned that model upside down. It focused on making every customer interaction feel personal, so they made ordering from Shipt wasn’t just about convenience. It was about trust and connection.

The result was that their average customer lifetime is 18 months, while Net Promoter Score (NPS) is 78 (vs. the industry average of 44).

They made customers feel special by:

  • Allowing direct communication with shoppers (so orders felt more personalized). 89% of customers rate their experience as personal, while 65% use the chat feature with shoppers.

  • Encouraging handwritten thank-you notes in deliveries. Check out these printed Shipt Shopper Thank You notes available on Etsy, for example.

  • Sending surprise gifts to repeat customers.

And I think this was a competitive edge more than a better experience. By creating a two-way relationship between customers and shoppers, Shipt turned one-time users into repeat customers who were less likely to switch to another platform.

Even in a market where price and speed are huge factors, people still choose familiarity and trust when given the option.

They created a relationship-driven experience - something competitors couldn’t replicate with discounts alone. 82% of customers cite "personal connection with shoppers" as the reason for loyalty.

3. Focused on Local Marketing, Not Mass Expansion

Most startups in the gig economy try to scale aggressively, launching in as many cities as possible to beat the competition.

But Shipt took a different approach. Instead of stretching itself too thin, it focused on deep local penetration before expanding. Instead of trying to scale nationwide too fast, Shipt grew city by city.

Check out one of their ads targeting Austin residents:

They partnered with local grocery stores, hosted community events, and ran hyperlocal marketing campaigns. This made them feel like a local brand, even as they expanded nationally.

By prioritizing smaller, more engaged markets, Shipt was able to:

  • Establish high brand awareness in each city before moving to the next. They maintain 87% of brand awareness in established markets and have 73% of market share in core cities.

  • Build genuine partnerships with local grocery stores. They have an average of 4.2 grocery store partnerships per market.

  • Ensure that customer demand matches shopper availability to keep service quality high.

This strategy gave Shipt a foundation of loyal users in every market before it moved on, reducing churn and maximizing organic growth. Today, they get 92% of new customer acquisition through word-of-mouth in established markets.

Transactional Growth - Traditional Approach

Most companies focus on acquiring users fast. They burn cash on ads, offer big discounts, and push aggressive referral programs.

Sure, this gets people in the door.

But here’s the problem: There’s no emotional connection. The moment a competitor offers a better deal, your customers leave.

That is why so many startups struggle with high churn rates. They spend a fortune bringing people in - only to lose them just as fast.

That’s where community-driven growth changes the game.

Why Community is a Cheat Code for Growth?

When people feel they are part of something bigger than just a product, they stay. They become loyal customers, vocal advocates, and repeat buyers.

And the best part?

They bring others with them without you having to spend a dime on marketing.

Think about brands like Apple, Harley-Davidson, or Lululemon.
They don’t just sell products. They sell identity.

  • People don’t just buy an iPhone. They become part of the Apple ecosystem.

  • They don’t just buy a Harley. They join a brotherhood of riders.

  • They don’t just buy yoga pants. They become part of a fitness lifestyle.

And that is community-driven marketing in action.

Now, let’s bring it back to Shipt.

Why This Worked?

In a market crowded with faceless apps, Shipt built emotional connections.

  • It gave gig workers an identity beyond just being contractors.

  • It made customers feel part of the experience, not just another order.

  • It expanded methodically, making each launch successful before moving to the next.

It wasn’t just about goodwill. That was a business strategy that led to higher retention, stronger loyalty, and a brand that customers and workers cared about.

Because, at the end of the day, businesses that build communities WIN.

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Where It Fits:

Making It Work For You

  • Speed matters, but trust is what keeps people coming back. Whether you build a SaaS product or a marketplace, focus on making people feel valued.

  • Instead of trying to scale instantly, own a niche first. Build a small, engaged community, and let that fuel your expansion.

  • Automation is good, but a human touch makes a huge difference. Find ways to personalize the customer experience - even small gestures can have a massive impact.

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Task

Here's an AI prompt and I would like you to try it on all possible generative AI tools (DeepSeek, ChatGPT, Gemini, or Claude) and see which delivers the best results.

» Data-Driven Marketing Case Study Analysis

Write a case study for [brand] that highlights the impact of a recent campaign driven by data insights. Explain how the data-informed each step of the strategy, the specific metrics used to track performance, and the key results achieved. Wrap up with actionable takeaways for marketers on using data to refine their campaigns.

Modification Areas: Brand name, campaign type, data points, key results.

Example:

Write a case study for DigitalGrove that highlights the impact of a recent campaign driven by data insights. Explain how data guided each step of the strategy, the specific metrics used to track performance (e.g., CTR, engagement rate), and the key results achieved, like a 20% increase in conversions. Wrap up with actionable takeaways for marketers on using data to refine their campaigns.

Please let me know your best answers in the reply to this mail with the screenshot and the tool name so I can share it with our community 🤗

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