Social currency refers to the actual and potential resources from presence in
social network
A social network is a social structure made up of a set of social actors (such as individuals or organizations), sets of dyadic ties, and other social interactions between actors. The social network perspective provides a set of methods for an ...
s and communities, including both
digital
Digital usually refers to something using discrete digits, often binary digits.
Technology and computing Hardware
*Digital electronics, electronic circuits which operate using digital signals
**Digital camera, which captures and stores digital i ...
and offline. It is, in essence, an action made by a company or stance of being, to which consumers feel a sense of value when associating with your brand, while the humanization of your brand generates loyalty and "word of mouth" virality for the organization. The concept derives from
Pierre Bourdieu
Pierre Bourdieu (; 1 August 1930 – 23 January 2002) was a French sociologist and public intellectual. Bourdieu's contributions to the sociology of education, the theory of sociology, and sociology of aesthetics have achieved wide influence i ...
's
social capital
Social capital is "the networks of relationships among people who live and work in a particular society, enabling that society to function effectively". It involves the effective functioning of social groups through interpersonal relationships ...
theory and relates to increasing one's sense of community, granting
access to information
Access may refer to:
Companies and organizations
* ACCESS (Australia), an Australian youth network
* Access (credit card), a former credit card in the United Kingdom
* Access Co., a Japanese software company
* Access Healthcare, an Indian BPO se ...
and knowledge, helping to form one's identity, and providing
status
Status (Latin plural: ''statūs''), is a state, condition, or situation, and may refer to:
* Status (law)
** City status
** Legal status, in law
** Political status, in international law
** Small entity status, in patent law
** Status conference ...
and recognition.
In marketing and management
In their study on social currency, the consulting company Vivaldi Partners defined social currency as the extent to which people share the brand or information about the brand as part of their everyday social lives at work or at home. This sharing helps companies to create unique brand identities and earn permission to interact with consumers or customers. In today's age, building social currency is an important investment companies can make to create value for themselves. Social Currency moves social initiatives and campaigns beyond marketing and communications efforts to impacting and changing entire industries and categories. Consumers and customers will benefit as well as they increasingly participate in social platforms, and use social technologies.
Social currency can be divided into six dimensions or levers:
It is about creating a sense of community and by that a strong affiliation between customers, consumers and users of a brand. Having social currency increases a brand's engagement with consumers and interaction with customers, and by that adding to the customer conversation around the brand, it grants access to information and knowledge, which is being shared within the customer base. Belonging to a group also helps users of a brand to grow personally by accessing new utility and also developing their own identity in the respective peer group. A strong attachment to a brand will also be a core driver for an active advocacy recommending or even defending the brand.
![Social Currency Levers](https://upload.wikimedia.org/wikipedia/commons/a/a6/Social_Currency_Levers.jpg)
The Social Currency Wheel is an alternative to the traditional brand funnel or customer decision journey. The Social Currency Wheel evaluates the impact of social behaviors of customers on social currency and three outcomes: consideration, purchase, and loyalty. The goal of the Social Currency Wheel is to explain how customers' social processes and behaviors drive each of the conversions. Marketers can engage with customers during these social processes and behaviors, and influence the outcomes.
Social currency is information shared which encourages further social encounters. It can be a factor in establishing
fans
Fan commonly refers to:
* Fan (machine), a machine for producing airflow, often used for cooling
** Hand fan, an implement held and waved by hand to move air for cooling
* Fan (person), short for fanatic; an enthusiast or supporter, especially wit ...
of sports or television programmes. As well as talking about sports, attendance at sports events themselves is a form of social currency. Young men in particular feel the need to learn about sporting current events in order to facilitate social interaction. However, these types of fan can easily move to a new sport, team, or programme in the future if the new one offers more social currency. Women may use jewellery and clothes as part of their social currency, providing a way into communication.
[{{cite book, url=https://books.google.com/books?id=yXwW25rYlVcC&q=%22social+currency%22&pg=PA74, title=Marketing to Women, author=Barletta, Martha, publisher=Dearborn Trade Publishing, year=2003, isbn=9780793159635]
Proper social currency tactics includes responding to comments, sharing posts to groups and forums, and strategic posting time and placement.
References
Sociological terminology
Reputation management
Social systems