What is 21st Century Social Currency?

June 29, 2009 10:15 AM

By Chris Barredo, Brand Planner, The Halo Group

A curious term has been popping up pretty often here lately at Halo: social currency. And the way we use it seems much larger and more important than ever. So it seems fitting that we examine what social currency means today.

Social structure has evolved dramatically due to many innovations in many different areas that allow people to connect and share with each other. It has resulted in the creation of a tribal society with multitudes of tribes (Seth Godin's "Tribes") – tribes of every size, shape and sort; tribes for every interest and taste – and it’s social currency that makes them go round. At one point, social currency stood for the power of the relationships you had, but social currency today should also include the “relationships” you have with experiences and interests. It’s no longer just about who you know, but what you know.

Take a look at any Facebook profile (or Linkedin, if you so prefer) and you’ll likely notice social currency at its best. First you’ll see the number of friends or contacts, but then it gets broken down even more into an infinite number of groups for everything from politicians to favorite soft drinks. Then there are interests, favorite books, movies, music and quotes. All are sources of social currency with different values in different tribes and they help provide deeper, more meaningful insights into who this person is and their stature in the tribe.

For example, in the chocolate lovers’ tribe, knowledge of how chocolate is made and what characteristics to look for in dark chocolate might be highly valued social currency. In this person’s respective Facebook profile you might see “Grenada 60% organic dark chocolate” as an interest along with other gourmet things such as wine or cheese. Perhaps you’ll see favorite books about the benefits of organic foods. From this profile, we might see that it’s valuable for them to know where the cocoa beans come from, how it is manufactured, its unique flavor profile and what other foods or drinks it could be paired with.

Unlike money, the quest to acquire social currency isn’t about power; rather, it’s about individualism. Think of consumers today more as curators of social currency, finding the right balance to represent who they are, what makes them unique, and the value they add to whatever tribes – online or off – they belong to.

The more you understand what are considered valuable interests, experiences and knowledge amongst your target audience and their respective tribes, and how they are used, the more you can understand how to fit your brand into their lives.

Permallink | Comments(0) |

Subscription Options

You are not logged in, so your subscription status for this entry is unknown. You can login or register here.

Comments

No comments found.