How brands and businessescan prosper in a digitallyconnected world

SOCIALCURRENCY

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

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This is reshaping your industry, changing your customers’ expectations and their relationship with your brand and company

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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

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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.

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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 servicesDecision 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

StrategicChallenges

Oil & GasTelecom

Utilities

Logistics

Consumer Electronics

Newspaper

Retail

Fashion

Credit CardsHealthcare

FMCG

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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

Prototype2

3 6

5

41

Scale

Deliver

Feedback

EngageIdentity

ConversationAffiliationAdvocacy

UtilityInformation

38% 41% 46% 57%

44

% 43%

28% 19% 23% 3% 2

8%

32%

9

8%

1

00

%

56

%

9

0%

85%

79%

UTILITY

UTILITY

UTILITY

INFORMATION

INFORMATION

INFORMATION

CONVERSATION

CONVERSATION

CONVERSATION

AFFILIATION

AFFILIATION

AFFILIATION

IDENTITY

IDENTITY

IDENTITY

ADVOCACY

ADVOCACY

ADVOCACY

AWARENESS to CONSID

ERAT

ION

PU

RCH

ASE

to L

OYALT

Y

CONSIDERATION to PURCHASE

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

5,000consumers 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.

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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 mobiletechnologies today.

vivaldipartners.com/vpsocialcurrency

13 Crosby StreetNew York, NY 10013, USAt +1 212 965 0900f +1 212 965 0992newyork@vivaldipartners.com

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Global Head Office

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