The term social currency was coined by Vivaldi Partners in 2010 – so naturally, they are experts on this subject. I came across one of Vivaldi Partners’ ebooks (it is worth reading!), and here is what I learned:
What is it?
Social currency is the degree to which customers share a brand or information about a brand with others. It is driven by 6 social behaviors:
- Information – the degree to which people seek, receive, and share information about a brand
- Conversation – how often people converse about the brand
- Advocacy – how much people promote and stand up for the brand
- Affiliation – the level of connectedness people feel towards a brand and surrounding community
- Identity – the extent to which people use the brand to communicate who they are
- Utility – how much people interact with the brand and surrounding community to extract practical value
Why is it important?
Every business is social, that’s why – even B2B companies. As Vivaldi Partners points out:
Big data, social, and mobile will form the basis of competitive advantage.
Here are 5 great examples of how companies are using social currency:
SAP uses a content marketing strategy to pull in users. They create valuable content; share it with their community network, social media channels, and website; and enjoy a cost per lead that is half of what it used to be.
Talk about a non-sexy industry: corporate risk and insurance. However, the company identifies influencers, asks them for testimonials and case studies, and shares that information across its social channels, thus turning customers into brand advocates.
To highlight its innovative approach to glass-making, Corning created a video set sometime in the future – that went viral. They subsequently made a sequel. Together, the videos created a lot of buzz and generated 14% growth in sales.
Philips has a phenomenally successful LinkedIn group with more than 47,000 members, all interested in lighting innovations. Members share news, white papers, tools, and ideas, creating a tight-knit community affiliated with Philips.
Top executives at GE regularly create content and communicate with their audience on social media, allowing their customer base to identify with and get to know the people behind the brand.
As a B2B company, what are you doing to build social currency?
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Image courtesy of Vivaldi Partners