How brands and businesses can prosper in a digitally connected world SOCIAL CURRENCY 2012 Summary → → → 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 → → → → → → How can this online information be utilized as a source of competitive advantage for companies? → 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 UTILITY Derive value from engaging with brands and other people INFORMATION Receive from and share with other people valuable information about brands CONVERSATION Talk about a brand or business to others ADVOCACY Promote or defend a brand or business AFFILIATION Connect and become a member of a community of people that is linked to a brand or business IDENTITY Express me, the brand, and my relationship with others to others Social Currency alters how brands are built, innovation is created, and businesses are grown in today’s digitally connected world SIX BEHAVIORS OF SOCIAL CURRENCY Goal Process Decision making Products and services Context Oil & Gas Utilities Strategic Challenges Logistics Telecom Healthcare Credit Cards Retail FMCG Consumer Electronics Fashion Newspaper 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) 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 Engage Identity Conversation Affiliation Advocacy Utility Information Prototype Design IDENTITY AFFILIATION Deliver UTILITY INFORMATION 38% 41 % AW AR EN % % 90 CONVERSATION 10 % 32 % 28 % ID E 3% NS 23% % CO AFFILIATION RATION to PURC ADVOCACY 19 IDENTITY AFFILIATION IDENTITY 28 % 43 % UTILITY CONVERSATION ADVOCACY 98% INFORMATION Feedback 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) 46 PURCH ASE to 56% LO YA 85 Y LT DERATION NSI 4% CO % to 57 S ES % ADVOCACY 79% Scale UTILITY 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) SE HA INFORMATION CONVERSATION The Social Currency 2012 Report is based on a global survey of 5,000 consumers to understand the impact of social technologies 60 19 on brands across industries Brands covered in this report include Red Bull, Starbucks, American Express, Sony, Levi’s, and State Farm, among many others Vivaldi Partners Group also developed the SC 100+ SC100+ an online tool that curates and explores the best and most successful applications of social, digital, and mobile technologies today vivaldipartners.com/vpsocialcurrency Global Head Office 13 Crosby Street New York, NY 10013, USA t +1 212 965 0900 f +1 212 965 0992 newyork@ vivaldipartners.com • New York • Chicago • Toronto • Buenos Aires • London • Munich • Hamburg • Zurich • Cape Town • Singapore For more information on Social Currency 2012 vivaldipartners.com/sc2012 ... brand and company → → → → → → How can this online information be utilized as a source of competitive advantage for companies? → Vivaldi Partners Group pioneered the concept of Social Currency and. .. share with other people valuable information about brands CONVERSATION Talk about a brand or business to others ADVOCACY Promote or defend a brand or business AFFILIATION Connect and become a. .. relationships with brands and businesses (Section 2) The Social Currency model has a major impact on entire industries and categories If companies apply this new Social Currency mindset, they can