Vivaldi partners group social currency 2012 (abridged) how brands and businesses can prosper in a digitally connected world

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 informati

How brands and businesses can prosper in a digitally connected world

SOCIAL

CURRENCY

2012

S u m m a r y

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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

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

or information about a brand with others.

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

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

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

(Section 5)

Design

Prototype

2

5

4 1

Scale

Deliver Feedback

Engage

Identity Conversation Affiliation Advocacy Utility Information

57%

%

28

%

19%

%

%

28%

32

%

56

90

%

85%

79%

UTILITY

UTILITY UTILITY

INFORMATION

INFORMATION

INFORMATION

CONVERSATION

CONVERSATION

CONVERSATION

AFFILIATION AFFILIATION

AFFILIATION

IDENTITY IDENTITY

IDENTITY

ADVOCACY

ADVOCACY

ADVOCACY

AWA REN ES

S t ON

SID ER

PU

RCH

SE

LOY

TY

CON

SIDERATION to PURCH ASE

The Social Currency 2012 Report is based on a global survey of

Brands covered in this report include Red Bull, Starbucks, American Express, Sony, Levi’s, and State Farm, among many others

SC 100+

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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For more information on Social Currency 2012 vivaldipartners.com/sc2012