{"id":6636,"date":"2018-05-29T09:00:59","date_gmt":"2018-05-29T13:00:59","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=6636"},"modified":"2025-05-08T02:54:20","modified_gmt":"2025-05-08T06:54:20","slug":"social-currency","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/social-currency\/","title":{"rendered":"What Is Social Currency? Definition, Benefits, and Examples"},"content":{"rendered":"

Ever wonder why some brands have customers practically tattooing their logo on their bodies while others can barely get a second glance? Or why your friend won’t shut up about their favorite coffee shop but couldn’t care less about where they bank?<\/span><\/p>\n

It all comes down to social currency\u2014that magical quality that makes brands worth talking about at dinner parties. <\/span>Knowing how to build social currency allows brands to <\/span>drive higher customer loyalty<\/span><\/a> and add to their <\/span>social proof.<\/span><\/a> This leads to more sales and referrals.<\/span><\/p>\n

In this post, we’re diving into the secret sauce that turns regular customers into raving fans. Get ready to discover how building social currency can transform your business from “meh” to “Must Have!” and why it might be the missing piece in your growth strategy.<\/span><\/p>\n

What is social currency?<\/h2>\n

Social currency is your influence on social networks, online and offline communities, and the degree by which your business is shared by others.<\/p>\n

Essentially, it’s your brand’s VIP pass into customers’ conversations, their social feeds, and\u2014most importantly\u2014their recommendations to friends.<\/span><\/p>\n

Are you creating moments worth sharing? Do people drop your brand name to sound in-the-know? Congrats! You’ve got social currency in the bank.<\/span><\/p>\n

The journey from browser to buyer is pretty straightforward. But turning customers into megaphone-wielding advocates? That requires something extra\u2014that something is social currency.<\/span><\/p>\n

A study by Vivaldi Partners<\/a> describes social currency as “the ability of brands to fit into how consumers manage their social lives in today\u2019s digital and mobile age.\u201d Social currency (or social capital) applies to the relationship between your business and consumers. If your business provides information and value to consumers, it is building social capital and solidifying its position in the market.<\/p>\n

Here\u2019s an overview of what social currency means to individuals and brands:<\/p>\n

Social currency of individuals<\/h3>\n

People share what they think makes them look good. In other words, they\u2019ll only share what they believe will maintain or boost their reputation in the eyes of their peers.<\/p>\n

Whenever a person chooses to share information, they place their reputation on the line and \u201cspend\u201d social currency. They don\u2019t want to share boring, irrelevant, or misleading information because they risk losing status among their peers.<\/p>\n

Social currency of brands<\/h3>\n

All brands need social currency. It makes connecting with customers easier. And when you share interesting content with your audience, having social currency means that message will more likely be shared with others.<\/p>\n

When someone shares your brand, they spend their social currency on you. And if others like what they see, then the social currency of both the sharer and your brand increases.<\/p>\n

Of course, your brand should already be trusted and relatable. But with positive social capital, it will be easier to grow your brand awareness and a stronger relationship with your customers.<\/p>\n

Social currency and brand loyalty<\/h3>\n

In the Vivaldi Partners study, social currency was shown to help drive brand loyalty. Brands with high social currency are also able to command premium prices.<\/p>\n

Think about Apple. By building its social currency, the company doesn’t just lead smartphone sales by volume. It also commands a premium. Apple is able to charge some of the highest prices for its products, without any dip in its brand loyalty. The majority of Apple customers are loyal to the brand, and are always awaiting the company’s next release.<\/p>\n

Similar to word-of-mouth marketing<\/a>, social currency is a means to an end. You don\u2019t just want customers to talk about your brand. You want them (and their friends) to buy.<\/p>\n

\"vivaldi<\/p>\n

Source<\/a><\/p>\n

The dimensions of social currency<\/h2>\n

How can you build social currency in a way that also drives revenue? Building social currency entails providing at least one of the following dimensions (or benefits) to your audience:<\/p>\n