Six Social Currency Dimensions
Building Social Currency Study
The concept of social currency is often discussed in the brand and advertising world – campaigns are tasked with creating social currency for their brands. By inserting brand names into the cultural conversation brands generate “emotional engagement” with consumers. The question then becomes: what constitutes an emotionally engaging experience? A recent Social Currency Study by Vivaldi Partners discusses why brands need to build and nurture social currency. Here are a few intriguing lessons.
- Advocates trump followers – Dunkin Donuts has 80% fewer Facebook and Twitter followers than Starbucks. Game over? Hardly. Dunkin Donuts fans are 35% more likely to recommend the brand, according to the Social Currency Study. Dunkin Donuts promotions are built around turning real people into online celebrities and then endorsers; ultimately brand advocates.
- Context matters – A product that is consumed socially may have a natural advantage towards enabling social currency. What is important to a consumer is the bonding or “social context” during consumption.
- Not every brand should be social - Mass market brands that are positioned based on functional superiority, such as Gillette, aren’t likely to see much upside in social currency. Loyal respondents gave the brand a 96% for good quality and reliability. So what more is there to say?
The point, Erich Joachimsthaler, Founder and CEO of Vivaldi Partners, tries to make is that the study is not about social media or marketing tactics; it’s much bigger. It’s about how customers relate to one another in the context of brands and, in turn, how those brands, companies, products and people relate to customers.
