Hey, welcome to another new edition of Mindful Marketing blog.
In this blog post, I want to dive into a game-changing shift that’s reshaping the marketing landscape: social currency.
The fundamental shift in consumer behavior
It’s time to harness the immense power of social interactions and online presence to propel your brand forward in today’s digital age.
Think about it: in the vast internet expanse, individuals like you and me, now create more content collectively than all brands combined.
This seismic transformation, driven by the internet and social media, has flipped the script on traditional marketing dynamics.
Remember, prior to internet, companies held all the cards, bombarding consumers with ads.
Well, those days are gone.
Today, it’s all about customer-created content—stuff that’s relatable and trustworthy, unlike the polished ads brands churn out.
Take a moment to reflect on your own social media experiences.
How often do you turn to friends’ posts for recommendations or insights?
Whether it’s a friend’s travel escapades or movie reviews, these conversations are teeming with valuable nuggets of information.
And, we trust them.
Now, let’s think about those WhatsApp and Slack groups we’re all part of.
From reconnecting with school buddies to networking with industry peers, these digital hangouts are where people share their experiences and seek guidance from their peers.
Just recently, I witnessed a senior executive in an industry WhatsApp group seeking recommendations for a marketing automation SaaS vendor. The response was overwhelming, with members sharing their experiences with the vendors and cautionary tales alike.
And it’s not just professional chatter.
Among friends, movie recommendations and political views spark lively debates and shape opinions.
Social currency – the underlying reason why people create content
At the heart of these interactions lies social currency – a term denoting the value individuals derive from their social interactions and online presence.
Every ‘like,’ ‘share,’ ‘comment,’ and ‘video view’ people get for their content, as well as every ‘recommendation’ they make and ‘opinion’ they share, serves as a form of social currency.
Also, notice that some of the modern-day consumer activities like social media posts, stories, reels, selfies, status updates, check-ins, ‘traveling from – to’ updates, and writing reviews are the real drivers of social currency.
It has become a social norm that if we visit a fascinating tourist location, a well-designed restaurant, watch a movie, or read a book, we share the experience with others on social media.
– Imagine how a hotel brand would benefit if it were part of this social media post.
– How many times have we considered buying a book because a reliable friend in our social circle posted about their reading experience with it?
The point is that people have become more self-expressive. They have also started behaving like journalists, sharing news updates and reviews with their social circle.
These attitudinal shifts have changed the way consumers research and buy things.
How social currency impacts brand management?
As marketers, it is important to recognize the intrinsic value of social currency and its pivotal role in shaping consumer behavior and brand perception.
But how can you harness the power of social currency to build a customer-centric brand?
The key is to reframe your marketing approach, seeing customers as active participants in brand management rather than passive consumers of the product.
Another necessary mindset shift is for companies to see their brand as a conduit through which customers cultivate their social currency and connections.
But, how do you know if your brand is enabling social currency for the customers?
Here are the three indicators;
1. Customers share their brand experience through their social media posts, selfies, or reviews. It’s so natural that they write it in their own language without you even asking for it.
2. They tell their friends and relatives who are looking for a similar kind of product or service. Remember, referrals are a way to derive social currency—a means for your customers to increase their social capital by guiding their friends to a reliable company or vendor. Remember, they are risking their credibility in their social circle when they recommend you.
It is a powerful indicator that they use your brand to mint social currency.
3. The brand’s communication and content spark conversations in your customers’ circles. Let’s say a recent blog post from your brand about sustainable living sparked a lively discussion among the environment enthusiasts on social media, with many sharing their own tips and experiences.
Finally, I believe every brand has to measure the above three indicators of social currency.
It reveals how remarkable and shareworthy your product or service experience is and how strongly the brand communication resonates with customers.
By enabling customers’ social currency, companies can unlock new avenues of engagement and advocacy, propelling their brand to new heights.
P.S – Did you get a chance to watch my new YouTube Video series?
Here’s the link – https://www.youtube.com/@rajeshsrinivasan4420/videos
