This abbreviated summary of our larger 2012 Social Currency Report (available here: http://www.slideshare.net/ejoachimsthaler/vivaldi-partners-group-social-currency-2012-final-sept18).
This summary defines Social Currency, its Six Dimensions, and covers the major conclusions of the larger report.
By building Social currency, brands and businesses can use it as a way to connect with consumers and grow their business.
All Vivaldi Partners Group research reports on Social Currency can be downloaded here: http://vivaldipartners.com/vpsocialcurrency/about
Vivaldi Partners Group - Social Currency 2012 (Abridged): How brands and businesses can prosper in a digitally connected world
1. How brands and businesses
can prosper in a digitally
connected world
SOCIAL
CURRENCY
2012
S u m m a r y
2. 2
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How can this online information be utilized as a source
of competitive advantage for companies?
Millions of conversations are taking place in today’s
real-time digitally-connected world
→
This is reshaping your industry, changing your customers’
expectations and their relationship with your brand
and company
3. 3
2
5
3
6
1
UTILITY
ADVOCACY
INFORMATION
AFFILIATION
CONVERSATION
IDENTITY
Derive value from engaging with brands and other people
Receive from and share with other people valuable information
about brands
Talk about a brand or business to others
Promote or defend a brand or business
Connect and become a member of a community of people
that is linked to a brand or business
Express me, the brand, and my relationship with others to others
4
Vivaldi Partners Group pioneered the concept of Social Currency
and defined it as the degree to which customers share a brand
or information about a brand with others.
4. 4
Social Currency alters how brands are built, innovation is created,
and businesses are grown in today’s digitally connected world.
A paradigm-shifting Social Currency model to build brands and businesses
is introduced. The Social Currency model departs from traditional
“product-benefit” and “consumer-needs” perspectives, but instead
views consumers as empowered and enabled, and, most importantly,
in control of their relationships with brands and businesses. (Section 2)Goal
Process
Products and services
Decision making
SIX BEHAVIORS
OF SOCIAL CURRENCY
Context
The Social Currency model has a major impact on entire industries
and categories. If companies apply this new Social Currency
mindset, they can challenge existing strategies and business models
in their industries. (Section 3)
Technological
Advances
Strategic
Challenges
Oil & Gas
Telecom
Utilities
Logistics
Consumer
Electronics
Newspaper
Retail
Fashion
Credit Cards
Healthcare
FMCG
5. 5
Social technologies change the traditional value chain by putting
customers at the heart of every step in the chain. The report concludes
that today’s hyper-connected world has created a breakdown
in the traditional value chain. By properly leveraging social technologies,
businesses can deeply integrate the customer at every step of the value
chain, reversing traditional linear logic of the value chain. (Section 4)
The Social Currency Wheel is an alternative to the traditional
brand funnel and customer decision journey. We have studied
the impact of social behaviors of customers on Social Currency
and three outcomes: Consideration, Purchase, and Loyalty.
(Section 5)
Design
Prototype
2
3 6
5
41
Scale
Deliver
Feedback
Engage
Identity
Conversation
Affiliation
Advocacy
Utility
Information
38%
41%
46%
57%
44%
43%
28%
19%
23%3%
28%
32%
98%
100%
56%
90%
85%
79%
UTILITY
UTILITY
UTILITY
INFORMATION
INFORMATION
INFORMATION
CONVERSATION
CONVERSATION
CONVERSATION
AFFILIATION
AFFILIATION
AFFILIATION
IDENTITY
IDENTITY
IDENTITY
ADVOCACY
ADVOCACY
ADVOCACY
AW
AREN
ESS
toCONSIDERATION
PURCHASEtoLOYA
LTY
CONSIDERATION to PURCHASE
6. 6
The Social Currency 2012 Report is based on a global survey of
5,000
consumers to understand
the impact of social technologies
on 60 brands across 19 industries.
Brands covered in this report include Red Bull,
Starbucks, American Express, Sony, Levi’s,
and State Farm, among many others.
7. 7
SC 100+
Vivaldi Partners Group also developed the SC100+
an online tool that curates
and explores the best and most
successful applications
of social, digital, and mobile
technologies today.
vivaldipartners.com/vpsocialcurrency
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