social commerce

Social Currency: More than just buzz

SocialCurrency

We have looked at how companies can monetize their social media with Social Commerce and we've introduced you to Famecount where you can find the popularity of brands, now with help from Vivald-iPartners  we examine how it all fits together to create Social Currency. The report Social Currency: Why brands need to build and nurture social currency explains that "today, one of the most important strengths of a brand is its social currency, the extent to which people share the brand or information about the brand with others as part of their everyday social lives." Social of media has changed how brands are built. "Social media sites are actively used today by major brands to strengthen customer service, introduce or co-create new products and entertain people." A high social currency commands a price premium and creates brand loyalty, but it takes more than just buzz. "Companies need to learn how to make their brands more social, and how to interact in new ways with their customers.

The most interesting part of the paper explains that although there are 6 components of social currency (affiliation, conversation, utility, advocacy, information and identity), brands don't need high scores in all 6 to have a high currency. Different categories of products have different needs. Categories like fast food and beer seem to be less dependent on providing a strong sense of community, whereas airlines and IT rely on their user-base to exchange news, hints, and other information.

Social Commerce: Monetizing Social Media

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Social Media, everyone is researching it these days and everyone wants to know how to make it pay. I ran across this white paper from syzygy group that describes social commerce as a "fusion of social media with e-commerce." Social commerce includes 6 dimensions: social shopping, ratings & reviews, recommendations & referrals, forums & communities, social media optimization, social ads & apps. The simple definition is "helping people connect where they buy, and buy where they connect." Amazon has been bringing customers together and getting ratings and reviews in their online store for years, and now stores are popping up in Facebook. 1800Flowers and Gilt Groupe now sell their wares right there so you can more than just "Like" them. There is also potential for brand building by creating associations in the minds of customers. Researchers are using psychology measures from social intelligence to gauge brand worth (see chart below). Next week I'll cover more on the new subject of a brand's social currency. The report is available from Social Commerce Today. Their site is full of the latest news on the subject. Check out all the companies making social commerce a reality and see if they are  cashing in.

Social Commerce Social Intelligence Heuristics