28 May 10

Why the Chief Misery of Every Man Means Price Premiums for Brands.

By Andrew Niven, MediaCom Beyond Advertising

"This craving for community is the chief misery of every man individually and all humanity from the beginning of time".
Fyodor M. Dostoyevsky 1881

This phrase from the master of Russian misery and founding father of existentialism is quoted early on in Vivaldi Partners’ (http://www.vivaldipartners.com/ ) new research into Social Currency. According to the research Social Currency significantly drives brand loyalty and brands with a high Social Currency command a price premium.

“Because of the increasing social nature of Internet and mobile technologies, consumers and customers adopt these technologies and platforms and integrate them into their daily life routines and contexts,” says the report, Social Currency: Why Brands Need To Build & Nurture Social Currency. “This also changes how they interact in all parts of life with people, products, brands and businesses. “Hence, all companies need to learn how to make their brands more social, and how to interact in new ways with their customers. In short, they need to develop social currency.”

Just as major platforms like Facebook, Twitter et al have become means for everyday personal exchange, brands have developed in this space as information and experiences about them is shared. And, of course, many of these social media are actively used by brands to bolster customer service, to co-create new products and to entertain.

“Social currency represents a shared asset of consumers and company-owned brands,” Vivaldi says. “It originates from interaction between customers and consumers.“However, companies can stimulate the creation of social currency through means that cultivate a sense of community, strengthen consumer interaction and provide value to the community. When done credibly brands earn trust and can grow into an integral, almost symbiotic role in customers’ lives.”

Vivaldi points to US airline jetBlue as a particularly social brand. “The deep integration in the company’s strategy may be illustrated by the new jetBlue terminal at New York’s JFK airport. Rather than constructing a merely functional terminal for departures and arrivals, focus was laid on human interaction. The waiting area mimics New York City landmarks, such as the steps of the Metropolitan Museum of Art, where travellers can exchange with each other physically or virtually. In addition to capturing the hustle and bustle of NYC, the terminal creates a community feeling.”

Sources: Vivaldi Partners: Social Currency; Why Brands Need to Build and Nurture Social Currency, brand-e.biz