social currency organization behaviour

© 2008 Critical Mass, Inc. All Rights Reserved

Social Currency

JOHN CHACKOSec A PGDM

13MG3127

© 2008 Critical Mass, Inc. All Rights Reserved

Social Currency as the degree to which customers share a brand or information about a brand with others.

Social Currency is driven by Six Social Behaviors:

INFORMATIONCONVERSATION

ADVOCACYAFFILIATION

IDENTITYUTILITY

© 2008 Critical Mass, Inc. All Rights Reserved

INFORMATION : The degree to which people seek, receive & share information about the brand CONVERSATION : How often people converse about the brand

ADVOCACY : How much people promote & stand up for the brand

AFFILIATION : The level of connectedness people feel to a brand & surrounding community

IDENTITY : The extent to which people use the brand to communicate who they are

UTILITY : How much people interact with the brand & surrounding community to extract practical value

© 2008 Critical Mass, Inc. All Rights Reserved

Forms of Social Currency : EntertainmentBusinesses can offer social currency in the form of branded games, catchy songs or even a hard laugh. It’s

© 2008 Critical Mass, Inc. All Rights Reserved

Personal ValueSocial Currency often comes by way and means of fame, status or recognition. Brands can offer social currency of personal value by offering content, rewards, benefits, and opportunities exclusive to its VIPs.

© 2008 Critical Mass, Inc. All Rights Reserved

UtilityUseful social currency often comes in the form of branded utilities such as mobile applications. Its functionality and sharing capabilities make for a mutually beneficial exchange of information between the brand and consumer and between the consumer and their friends.

© 2008 Critical Mass, Inc. All Rights Reserved

InformationInformation in the form of knowledge and thought leadership, can be produced in various formats such as video interviews, SlideShare presentations and blog posts. Brands can use this form of social currency to educate or help their customers.

© 2008 Critical Mass, Inc. All Rights Reserved

Monetary ValueMonetary values of social currency are the digital equivalent of the conventional sales promotion or PR activity. So it could be a free taco from Taco Bell or a Foursquare deal or partnership badge.

© 2008 Critical Mass, Inc. All Rights Reserved

Where it fits•Events: Brands often struggle with the closing the gap between intent and action. Events present the opportunity to reward physical participation with social currency- a mutually beneficial value to both the brand and consumer.

•Product Education: Brands often need to educate consumers about new, underrated, complex or changed products. Product demonstrations and Live Q&A video can be used as social currency to inform the misinformed or uninformed.

•New audiences: Brands can find establishing credibility among new audiences difficult to do. Social currency of any value can be used to introduce new products, campaigns or promotions and establish brand equity with a foreign demographic.

•Crisis Management: Social currency in the value of information can be used to respond to crisis situations with valuable information and “news you can use”.

© 2008 Critical Mass, Inc. All Rights Reserved

Thank you