Social currency is one way of seeing the value businesses add to customers. Knowing how to build social currency allows brands to drive higher customer loyalty and add to social proof. Here are a few benefits of adding to your social currency and how to use it to benefit and grow your business.
Social currency and brand loyalty
Brand with high social currency are also able to command premium prices
- Apple is able to charge some of the highest prices for its products, without any dip in brand loyalty because its customers are loyal to the brand
- Social currency is a means to an end: you don’t just want customers to talk about your brand, you want them (and their friends) to buy
Trendy Butler
Referral programs are one of the most effective ways to grow your customer base – all your customers know at least one other person who would love you.
- They even named their campaign a “Friends & Family Program” to emphasize the exclusive list and make you feel like you’re part of a family.
Social currency of brands
Brands need social currency to connect with customers easier
Incentivize your advocates
Offer coupons, vouchers, gift cards, or other proven referral rewards for your advocates.
Create explainer videos
A simple explainer or how-to video is always helpful for consumers.
The dimensions of social currency
Affiliation: Offering a sense of community among your customers
- Conversation: Engaging in the conversation around your brand
- Utility: Creating value for customers, while helping them become more socially relevant
- Advocacy: Developing strong brand loyalty, to the point where customers will recommend a brand to others
- Information: Giving valuable and shareable information
- Identity: Providing customers with their own identity in a group
Put a face to your social capital efforts
Featuring your best customers is a great way to show them you appreciate their efforts, and helps form key identities within your community
- Social currency dimensions used: Identity, advocacy
- Review your current marketing strategies and look for other areas you can add to your Social capital
The social currency bank account
Building your social currency can also make your referral marketing strategies more effective
- Be present on social media, share relevant content, and highlight your best features
- You don’t have to do everything at once – you can gradually build your customer relationships
Social currency of individuals
People share what they think makes them look good
In-N-Out
Animal Style burgers are part of the secret menu, so you had to learn about them through word-of-mouth before you could order.
What is social currency?
Social currency is your influence on social networks, online and offline communities, and the degree by which your business is shared by others.
- If your business provides information and value to consumers, it is building social capital and solidifying its position in the market.
Use Gamification
Add game mechanics or competition structures
- Gamification can easily be applied to a loyalty program or referral program
- It can also be used in a promotional contest
- The fun and value customers get out of this type of marketing can motivate them to share your brand
- Social currency dimensions used: Identity, affiliation, utility, advocacy
Optimize content for social media sharing
Create products and content optimized for social sharing.
- Deliver what your audience wants, stay true to your brand voice and tone, and use social currency dimensions used
- Conversation, Utility, Affiliations, and Partnerships
Larger amounts of higher-quality leads
More leads = more business growth
Higher customer retention
Social currency drives the kind of loyalty that catapults you over other brands
Find influencers and brand ambassadors
Find representatives who resonate with your audience, and whose fans respect and trust them
Milk Train
An ice cream shop in the UK that creates a cloud dessert with ice cream and cotton candy that is Instagrammable
Starbucks
This tweet from Starbucks is #perfect
Form a community
Create communities
Show what’s unique about you
What sets you apart from your competitors? Do you have a unique selling point? Find what makes you stand out and highlight those features in all of your marketing efforts.
Create a sense of exclusivity
Share exclusive brand secrets with your most loyal customers
- This drives them to talk about your brand with their friends so they can all enjoy the same benefits
- Social currency dimensions used: Utility, Information, Social Capital
- Offer of exclusive info raises your social capital among your select customers
Greater Insight into Your Customers
Positive social capital deepens the relationship between your business and your customers
- You’ll have a clearer view of what your customers want, what they don’t want, and any gaps in the market you can address.
- See how customers perceive your brand, which allows you to manage your brand reputation.
Organic Growth
When your social capital reaches a certain level, you experience a snowball effect – all the work you’ve done in the past will compound
- Customers are already motivated to share the product or service with others
- You can expect a boom in customers and advocates for your brand
