Social currency refers to the extent to which people share a brand or information about it as part of their everyday social lives. The document discusses how building social currency is now critical for brands due to the rise of social media and how people integrate technologies into their daily lives. It also explains that social currency increases brand engagement, access to information, identity, and permission to interact with customers. Companies must adopt new approaches centered around interaction, collaboration, and co-creation to build social currency effectively and create value in today's digital world.
Learn more at www.wdcep.com/business-in-dc/marketing-your-business/
Doing Business 2.0 is an education seminar that features content from the WDCEP's Doing Business in DC publication.
Branding evolved from the focus on the visual design, logos, symbols, colours and fonts to a broader concept, where strategy plays a fundamental role. Brands became the drivers of differentiation and reputation and a key action tool.
Brands are essential for establishing relations between companies and their stakeholders. They generate links and create connections, which enable companies to obtain support, trust and cooperation of their stakeholders and thus create value and become the cornerstones of the business strategy.
Social media is changing the marketing landscape and company’s who were early adopters of the new media platform have gained significant market impact. But many brands have not yet embraced this new trend but the choices are confusing and the risks significant.
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
Learn more at www.wdcep.com/business-in-dc/marketing-your-business/
Doing Business 2.0 is an education seminar that features content from the WDCEP's Doing Business in DC publication.
Branding evolved from the focus on the visual design, logos, symbols, colours and fonts to a broader concept, where strategy plays a fundamental role. Brands became the drivers of differentiation and reputation and a key action tool.
Brands are essential for establishing relations between companies and their stakeholders. They generate links and create connections, which enable companies to obtain support, trust and cooperation of their stakeholders and thus create value and become the cornerstones of the business strategy.
Social media is changing the marketing landscape and company’s who were early adopters of the new media platform have gained significant market impact. But many brands have not yet embraced this new trend but the choices are confusing and the risks significant.
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
Hoy en día nos enfrentamos a importantes retos ambientales, sociales y culturales. La innovación y el diseño pueden ayudar, pero sólo si abrimos el proceso de diseño a todos. La co-creación pone las herramientas de innovación en manos de los destinatarios finales del diseño.
En esta conferencia se mapea las actividades de co-creación y las relaciones de los asistentes con estas y se abrirá un debate a partir de este ejercicio.
Tim Wragg, CEO Millward Brown Europe.
Ideals – the ultimate growth driver.
Idag är det viktigare än någonsin att skapa äkta och meningsfulla relationer till sina kunder. Forskning visar att företag som bygger djupare relationer till sina kunder och associeras med högre ideal och mänskliga värderingar också har den största finansiella tillväxten. Om vikten av att skapa mervärde och gå från produkt till syfte, från vad till varför.
Contagious rounds up the landmark events, movements and socio-economic shifts that have shaped the last year. Buy a beautiful physical copy now: bit.ly/printMoCo
Delivering on the Promise: Five Ways to Drive Brand Effectiveness with Social...NM Incite
Building successful brands hinges on applying social media insights at every stage of the brand lifecycle. This white paper outlines 5 ways to effectively employ social media to drive positive brand equity and ultimately refine your strategy to create deeper, emotional engagement with your consumers.
Hoy en día nos enfrentamos a importantes retos ambientales, sociales y culturales. La innovación y el diseño pueden ayudar, pero sólo si abrimos el proceso de diseño a todos. La co-creación pone las herramientas de innovación en manos de los destinatarios finales del diseño.
En esta conferencia se mapea las actividades de co-creación y las relaciones de los asistentes con estas y se abrirá un debate a partir de este ejercicio.
Tim Wragg, CEO Millward Brown Europe.
Ideals – the ultimate growth driver.
Idag är det viktigare än någonsin att skapa äkta och meningsfulla relationer till sina kunder. Forskning visar att företag som bygger djupare relationer till sina kunder och associeras med högre ideal och mänskliga värderingar också har den största finansiella tillväxten. Om vikten av att skapa mervärde och gå från produkt till syfte, från vad till varför.
Contagious rounds up the landmark events, movements and socio-economic shifts that have shaped the last year. Buy a beautiful physical copy now: bit.ly/printMoCo
Delivering on the Promise: Five Ways to Drive Brand Effectiveness with Social...NM Incite
Building successful brands hinges on applying social media insights at every stage of the brand lifecycle. This white paper outlines 5 ways to effectively employ social media to drive positive brand equity and ultimately refine your strategy to create deeper, emotional engagement with your consumers.
Slides from the Boost Bristol event on October 11th with guest speakers Mark from Brand 51 and Helena from Truestart Coffee. https://www.eventbrite.co.uk/e/boost10-the-importance-of-branding
I did this presentation in May 2014 at the CCSBE conference in Antigonish, NS - http://ceed.ca/ccsbe2014/about-ccsbe-2014/. It was a fun presentation with a very interactive group of business owners, educators, and others that support the entrepreneurial spirit.
These are the visuals from a presentation I delivered to a group of owners of UK independent financial advice (IFA) practices on 19 November. You'll see that the issue I was invited to address was 'How to build an Independent Financial Advice (IFA) brand' but, soon, the question shifts to 'How to build a brand these days'.
What Is the Role of Brand in Management Consulting? Research Highlights from ...DeSantis Breindel
In partnership with the Association of Management Consulting Firms (AMCF), the Brand Influence Guide for Management Consulting (BIG:MC) examines how management consulting firms are leveraging brand as a business asset. See more at http://www.desantisbreindel.com/big/management-consulting/
Brands in the digitally connected world, social media, social technologies, business strategy, and innovation
Update on Feb 2014: Check out our newest report on the "Always-On Consumer" 2014 here: http://www.slideshare.net/vivaldipartners/alwayson-consumer-2014-report-by-vivaldi-partners-group
Digital Life - Understanding the opportunity for growth onlineTNS
Our goal is to make this complex environment simpler to navigate, cutting through the clutter to develop precise strategies, channels and content that inform your marketing plans, and make digital a key part of your growth strategy.
This report contains just a small snapshot of our findings, but please do get in touch with us to understand more about the opportunity that digital presents in your market or category.
http://www.tnsdigitallife.com
Branding concepts in the context of China report by daxue consultingDaxue Consulting
What branding methods work in the middle kingdom? In this comprehensive branding report, we dissect branding concepts in the context of China. Read the full report to learn:
A. The breakdown of brand touch-points in China
B. Daxue consulting's process for naming a brand in Chinese
C. What to consider to perfect your brand message to China
D. How concepts like tribes, nudge marketing, customer sweet spots are applied in China
E. Successful branding case studies of both foreign and Chinese domestic brands
And much more!
1 Marketing Sunil Gupta, Series Editor READING + VIDTatianaMajor22
1
Marketing
Sunil Gupta, Series Editor
READING + VIDEO
Brands and
Brand Equity
ROHIT DESHPANDÉ
Harvard Business School
ANAT KEINAN
8140 | Revised: December 19, 2019
For the exclusive use of L. Du, 2020.
This document is authorized for use only by Lingjie Du in Social Media Marketing taught by Ashley Keeney, Northeastern University from Sep 2020 to Dec 2020.
2
Table of Contents
1 Introduction ............................................................................................................................................ 3
2 Essential Reading .................................................................................................................................. 5
2.1 Strategic Importance and Significance of Branding .....................................................................5
2.2 Strategies and Tactics for Building, Leveraging, and Defending Strong Brands ..................... 13
2.2.1 Creating and Building a Strong Brand .............................................................................. 13
2.2.2 Growing and Maintaining Strong Brands ......................................................................... 24
2.2.3 Managing Declining or Dying Brands ............................................................................... 32
2.3 Challenges in Brand Management ............................................................................................... 35
2.4 Conclusion .................................................................................................................................... 37
3 Supplemental Reading ......................................................................................................................... 38
3.1 Business-to-Business Branding .................................................................................................. 38
3.2 Personal Branding ........................................................................................................................ 39
4 Key Terms ............................................................................................................................................ 43
5 For Further Reading ............................................................................................................................. 44
6 Endnotes .............................................................................................................................................. 45
7 Index ..................................................................................................................................................... 48
This reading contains links to online videos, denoted by the icon above. To access these
exercises, you will need a broadband Internet connection. Verify that your browser meets the
minimum technical requirements by visiting http://hbsp.harvard.edu/tech-specs.
Rohit Deshpandé, Sebastian S. Kresge Professor of Marke ...
by John Bell, Global Managing Director, Social@Ogilvy.
The following is a plan describing a simple and practical way for business leaders to think about gaining the benefits of social behaviors (and the technologies supporting those behaviors).
In many ways the promise of a ‘social business’ is to get us back to what we care about — people working together to create something of greater value than they could have if they had remained unconnected and apart.
With the growth of brands and the complexity of choice facing consumers, brands are challenged to effectively stand out and engage customers in the split- second it takes to make a buying decision. The Blink Factor is a process of better understanding how consumers connect with brands and which elements of your package design should be better leveraged.
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
The landscape has changed, and with it, the foundations your business needs for success. Learn how to unlock hidden insights in data and lead your team to greater success with Vivaldi's new quick guide for CMOs.
Contact our team of experts via email: hello@vivaldigroup.com.
Today’s B2B landscape is facing a paradigm shift from business to business to human to human, leading to 5 key challenges for businesses to overcome. Vivaldi brand-building experts share winning approaches to tackle these challenges to unlock growth opportunities. If you're interested in learning more, please contact us at: hello[at]vivaldigroup.com
Gen-Z Insights: Is Your Brand Ready To Take On The Next Generation? VIVALDI
With incredibly high expectations for brands, Gen-Z is a generation of competitive “aspirationalists.” We’ve identified 5 key Gen-Z insights that will help your brand unlock growth opportunities, they revolve around the following values: Access Over Ownership, Hyper-Personalization, Anchored In Ethics, Seamless Experiences and Capturing Attention.
Vivaldi explores the rising influence of platforms and the four perspectives on platforms that have led to its definition today.
Enquire about Vivaldi's leading platform strategy expertise and offerings by visiting vivaldigroup.com or emailing to hello@vivaldigroup.com to connect with one of our experts.
A New Era of Brand-Building | Erich Joachimsthaler Brand Smart KeynoteVIVALDI
Brand-building has departed from traditional models of awareness, image, and emotion, and has landed in an era of utility. Marketers must compete, more so even than before, for a share of their customers’ busy lives. Utility is what allows brands to deliver on customer expectations and create value in the 1,440 minutes of their day. Vivaldi CEO Erich Joachimstaler names the old era the “World of Walls,” driven by supply, wherein branding serves to insulate from competitors, and the new world: the “World of Webs.” Today’s world is ruled by demand, and brands serve to facilitate connection, interaction, and change.
To succeed in this age of disruption, brands and businesses need a new roadmap that harnesses technology and data to connect more deeply with customers and rethink how to work within the larger ecosystem. Erich shares the 4 new principles of building strong brands in this presentation given at the annual Brand Smart event in Chicago.
A Revolution is Coming in How Business Marketers Create Value Across Industri...VIVALDI
At least since the industrial revolution, the basic model of a market and how companies create value has been the same. Companies buy, make, and sell stuff. Value is created at every stage of the value chain and at the end of the pipeline a product or service that customers value pops out. That fundamental basic structure is now shaken up by technology.
In place of the basic model are new models of value creation –
some call them digital ecosystems, platform businesses, cloud-based business models, or Industry 4.0. Regardless, these technologies have one thing in common: they leverage a global digital infrastructure that enables connectivity and interaction between producers and customers, and a third-party ecosystem of partners.
These new models have shocked the foundations of markets, industries, and businesses that serve customers. Dr. Joachimsthaler describes the nature of these shocks on industrial markets and businesses, and shows how companies and brands in traditional B2B markets can adopt some of the principles of these new models of value creation with the goal to achieve new competitive advantages. Dr. Joachimsthaler also outlines how the role of business marketers is changing in this new context.
"What to do at a time when consumers no longer trust brands, when marketing is less and less effective and differentiation is rare? Tips on how to address the new marketing paradigm and improve people's lives.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
"The Mad Men era was defined by the quest for awareness through big budget advertising. The days of Strategic Brand Management address relevance and differentation, through increased emotionalization. Today, neither are sufficient and building brands in the digital age require creating experiences that connect, that engage and that create value and utility for the customer.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
"Are brand valuation techniques still adapted to the modern role of brands in building equity for an organization? This presentation reviews some of the more common approaches and introduces an alternative adapted to the measurement of brands in today's digital and social world.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
Staying Ahead of Disruptors in the Hospitality BusinessVIVALDI
"How to stay ahead of hospitality industry disruptors (hi there, Airbnb)? Erich Joachimsthaler, founder and CEO of Vivaldi, shared his perspective at HX The Hotel Experience. The secret lies in building brands around a deep understanding of today’s travel customer and creating meaningful customer relationships in the age of Digital Darwinism. Calling on hoteliers to rally their brands around a customer-focused purpose, Erich highlighted the tensions facing today’s travelers, especially in leisure travel, which even the disruptors aren’t solving: customers are constantly having to make trade-offs between authenticity, self-reward, and self-expression. Understanding where your customers’ current trade-offs lie, and tapping into exactly those spots will be what separates the cream from the crop in the future of hospitality – and is the biggest insight that Erich shared with the industry shakers and movers.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
It's a Complex Healthcare World: Complex Patients, Markets and TechnologiesVIVALDI
"As healthcare rapidly progresses towards digital transformation, Erich Joachimsthaler, Vivaldi founder and CEO, gave the keynote speech to the annual general meeting of The Pharmaceutical Business Intelligence and Research Group (PBIRG). Understanding the active, self-directed, problem-solving patient will be key to reimagining the future of healthcare. Erich shares four steps to doing just that.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
Brand & Corporate Culture: The Burberry ExampleVIVALDI
"A deep dive into the transformation of Burberry. The nearly 150-year-old British manufacturer of trench coats had lost its way in 2006 and started a digital transformation, which called for a complete overhaul of its technology infrastructure from the front-end customer experience to the back-end operations and global supply chain. But while the technology initiatives that changed the major processes of the company have been widely copied by other fashion retailers, it was the cultural transformation that Burberry pursued in tandem that put the company into the Champions league of the most admired luxury brands in the world forever: placing the trench coat front of the center of the organization as an object of pride; identifying and recruiting for key business-driving roles; leveraging new capabilities to create music, movies and storytelling to speak to millennials, etc... this is a study of how brand and corporate culture trasnformed the business.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
The UBER Effect: How to Compete in the New Business OrderVIVALDI
"How to compete in our new world of disruption?
Vivaldi Founder and CEO Erich Joachimsthaler gave a keynote address at the Brand Week Istanbul festival on November 9, 2016 during which he outlined how to stay ahead of what he calls the “Uber effect.” He reminds us that it is not just technology that matters. What matters is how consumers have adopted technology, and the pace with which they have adopted technology. It has created a new consumer—the empowered consumer and always-on consumer. Erich highlights how marketers can succeed in this environment and how to approach innovation, build strong brands and connect with customers in meaningful ways.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
Why Digital Connectivity Matters to B2B CompaniesVIVALDI
"On February 28th, executives from leading B2B enterprises gathered at SAP’s headquarters outside Philadelphia for a Jam Session with ISBM. The theme of the conference was certainly cautionary, if not foreboding: “Disrupt or Be Disrupted.” But there were plenty of hopeful insights to glean from the day’s workshop, especially in the keynote address from Vivaldi’s own founder and CEO Erich Joachimsthaler.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
"Traditional brand trackers are built for the marketing of yesteryear, not the fast-paced world of the digital era - so most companies react too late and marketers are ill-equipped to respond to the digital natives. Marketers need a new way to understand the strength of a brand. That's where BPS comes in. What is BPS? It's brand performance measurement built for today.
Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "
"The Changing Role of the CMO" Report by Vivaldi Partners GroupVIVALDI
"The Changing Role of the CMO” is a report released by Vivaldi Partners Group, a growth and brand strategy consulting firm that includes a design and experience agency known as Fifth Season.
Vivaldi Partners Group conducted in-depth interviews with CMOs and senior marketing executives across three continents to get their perspectives on the transformation in the field of marketing.
The resulting research uncovered five common areas of change for most CMOs. The report also identifies three particular skill sets would be key to managing these five areas of change.
Find out more information here: http://vivaldipartners.com/
Social Currency Impact Ranking (Abbreviated) VIVALDI
This is an abbreviated version of the Social Currency Impact Ranking that was released by Vivaldi Partners Group, a strategic consulting firm that includes a digital and technology agency known as Fifth Season.
In the report, Vivaldi Partners Group ranks the best brands that most effectively leverage the social behaviors that influence the degree to which individuals share a brand or information about a brand with others.
This abbreviated ranking shows the top 10
The report is a ranking of the brands in the Social Currency 2012 Report. Both reports, and all of the Social Currency research reports, can be downloaded from the Vivaldi Partners Group website: http://vivaldipartners.com/vpsocialcurrency/about
More information on Social Currency 2012 can be found at: http://www.vivaldipartners.com/sc2012
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
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➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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3. Table of Contents
Editorial 2
Executive Summary 4
Introducing the Concept of Social Currency 8
Impact on Industries and Categories 20
Managerial Implications
g p 5
58
Acknowledgements 64
1
4. Editorial I have been studying brands for the last
twenty years. During this time, there has
been significant progress in understanding
why brands are important and how brands
Brands are socially constructed objective become important drivers of innovation and
realities. Brands get bu lt t oug expe-
eal t es. a ds built through e pe g
growth.
riences, through people accepting them
There has been significant progress in the
and making them part of the fabric of their
development of financial frameworks to
lives.
monetize and measure the value of brands,
This process of building strong brands is very legal frameworks to protect brands, and a
personal and also very social. host of managerial approaches to build,
grow,
grow nurture and manage brands.
brands
Today, one of the most important strengths
of a brand is its social currency, the extent to However, nothing has prepared us to deal
which people share the brand or information with today’s revolution in building strong
about the brand with others as part of their brands. The rapid evolution of the Internet
everyday social lives. and, in particular, the rise of the social
2
5. of media, technologies and networks not I am convinced that this study sheds new
only changes our lives, it irrevocably light on the complex and difficult under-
changes how brands are built. taking of building strong brands today.
I am pleased to present, on behalf of Vivaldi I hope that our work will stimulate thoughts
Partners and the many talented people who and more research, encourage new and
work i our company, thi study of th
k in this t d f the better
b tt practices i b i
ti in business, and l d th
d lead the
power of social currency in building strong way into an exciting future of creating value
brands. for companies.
For the first time, we deconstruct social
currency. We find that social currency is not
just about conversation, buzz or community.
It is all this and much more. We find that it
does not impact every brand equally. We Erich Joachimsthaler, PhD
find that certain levers of social currency are Founder and CEO
more important than others in driving value Vivaldi Partners
for companies.
3
6. AFFILIATION
IDENTITY CONVERSATION
SOCIAL
CURRENCY
INFORMATION UTILITY
ADVOCACY
4
7. Executive Summary
Social currency is the extent to which people share the brand or information about the brand
as part of their everyday social lives at work or at home.
Our study shows that social currency significantly drives brand loyalty. Moreover, brands
with a high social currency command a price premium.
Social currency is a means, not the end; nor is it just about buzz or conversation. Rather it is
about creating meaningful experiences around the brand.
Which of the six levers on the left are key to effectively create social currency varies between
categories and their specific customer, consumer, and competitive context.
The successful brands in our study strive to be an integral part of people’s daily lives by
enabling them to connect, interact, and benefit from like-minded brand users.
The good news: the study shows that a set of key principles emerge that help companies to
build, nurture and manage social currency and create value.
5
8. This craving for commun
of every man individual
from the beginning of t
6
10. Why brands need
social currency
AFFILIATION Brands represent significant assets for
companies. The strength of brands is closely
li k d to several well-known asset
linked t l ll k t
IDENTITY CONVERSATION dimensions that drive the relationships with
customers or consumers.
SOCIAL Because of the increasing social nature of
CURRENCY Internet and mobile technologies,
consumers, and customers adopt these
INFORMATION UTILITY
technologies and platforms and integrate
them into their daily life routines and
ADVOCACY
contexts. This also changes how they
interact in all parts of life with people,
products, brands, and businesses.
8
11. PHOTOGRAPHY BY NASA
Hence, all companies need to learn how to In order to manage social currency, com-
make their brands more social, and how to panies must adopt new approaches and
interact in new ways with their customers. In tools. If the traditional model of brand
short, they need to develop social currency. marketing was centered around the key
principles of positioning, targeting, and
Having social currency increases a brand’s
messaging, the model of building social
engagement with consumers and interaction
g g
currency i centered on i
is d interaction, colla-
i ll
with customers, it grants access to
boration, conversation, and co-creation. If
information and knowledge, it helps
brands used to be built through creating
companies to create unique brand identities,
mindshare, the new model of building social
and it develops permission to interact with
currency is about creating share of daily
consumers or customers. In today’s age,
life.
building social currency is probably the most
important investment companies can make Companies who adopt the new processes
to create value for themselves. Consumers and tools in building social currency will
and customers will benefit as well as they prosper in today’s age of digital and social
increasingly participate in social platforms, revolution and have a chance of creating
and use social technologies. new levels of business performance.
9
12. How social increasingly covers the range of experiences
on how consumers interact with brands,
currency products and companies from traditional to
develops in digital experiences.
daily life Social Currency is neither a product feature,
nor a communications or PR campaign that
Social currency of a brand develops organ-
is completely managed by any one company.
ically in the network of people – consumers,
customers, suppliers, partners. From this perspective, social currency is a
far more delicate asset to build, nurture and
Social currency is not a communications
maintain than brand equity. Traditional
approach, it is an experiential concept. It
brand management has been a successful
develops from experiences that consumers
p p a
driver f many b d M
di for brands. Many of the Top
f th T
have in the context of their daily life.
1000 global brands have grown over the last
Hence, context matters. Understanding twenty years. All these brands derive
social currency requires to understand how strength from deep relationships and
the context of daily life changes and interactions with customers or consumers,
10
13. PHOTOGRAPHY BY JURVETSON/FLICKR
and by that, social currency is not a new Many of these social media sites are actively
phenomenon. Brand building has always used today by major brands to strengthen
been about establishing deep relationships customer service, introduce or co-create
with customers or consumers and share new products and entertain people.
their experiences with friends and peers –
In addition, there are thousands of small
their everyday social environment.
networks, forums and blogs that are not
However, especially with the development of steered by the brands themselves, but still
social platforms on the Internet, which has are important in creating social currency.
become a major sharing and connecting
Today, building of social currency takes
point, social currency has become a real
many forms, some of them being supported
source of strength for many brands.
by digital applications, others are non-
Just
J t as major services lik F b k T itt
j i like Facebook, Twitter, digital
di it l experiences i th d il life of con-
i in the daily lif f
or MySpace have become means for sumers. Some experiences are supported by
everyday personal exchange, brands have applications and tools of companies and
grown in that space as information and others are self-created by customers and
experiences about brands are being shared. consumers.
11
14. Social currency:
a shared domain
of brands and
consumers
Social
S i l currency represents a shared asset of
t h d t f
consumers and company-owned brands. It
originates from interaction between customers Social
and consumers. Currency
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 com-
munity. When done credibly brands earn trust Brand Consumer
and can grow into an integral, almost symbiotic
role in customers’ lives.
12
15. PHOTOGRAPHY BY DJWHELAN/FLICKR
Impact of social
currency on brand
performance
Our
O study shows that social currency
d h h i l
significantly impacts different aspects of brand
Brand Price
performance:
Loyalty Premium
1. Across categories and brands, 53% of exp. power correlation
consumers
consumers’ brand loyalty can be explained 53
53% 73
73%
by social currency.
Social
2. Users of brands with high social currency Currency
show a significantly higher willingness to
pay a price premium (correlation=0.73).
Source: Vivaldi Partners Research based on regression analyses of brand loyalty on social currency levers 13
16. Affiliation 49
What share of your users has a
sense of community?
f i ? 27
AFFILIA
IDENTITY
Identity 47 SOC
How many of your users can CURR
identify with other users? 43
INFORMATION
ADVO
Information 35
How many feel they exchange
fruitful information with others? 22
14
17. Conversation 72
What share of your brand users
recognizes and stirs b ?
i d i buzz? 49
9
ATION
CONVERSATION
CIAL Utility 63
RENCY How many derive value from
interacting with other users? 50
UTILITY
OCACY
Advocacy 64
6
How many act as disciples and
stand up for your brand? 38
Source: Vivaldi Partners social currency survey December 2009, Exemplary results for selected brands and categories 15
18. How social
currency
creates value
in categories
Although social currency consists of six core
levers, a brand does not necessarily need to
access each lever in order to drive loyalty
and top line growth. Instead, certain
Impact of social currency levers on
brand loyalty within selected categories
AUTOMOTIVE (VOLUME)
AIRLINES
BEER
SKIN CARE
FAST FOOD
SPORTSWEAR
ONLINE RETAIL
CONSUMER IT
B2B TECH
PHOTOGRAPHY BY PHILLIE CASABLANCA/FLICKR
19. categories seem to be less dependent on food). Such activities will then directly drive
providing a strong sense of community or re-purchase or repeated visits respectively.
relying on the user-base to exchange news,
In contrast, consumer brands in the IT
hints or other information.
category, like Apple or Microsoft need to
For example, categories like fast food or
example efficiently address most levers as complexity
beer rely less on strong affiliation amongst of products implicitly leads to higher
their users but can still tap into social exchange levels and especially tangible
currency by helping users to learn from each products are providing today’s light houses
other (beer) or by strengthening the to convey one’s personality traits just like
identification levels with other patrons (fast automobiles have for the last century.
Affiliation Conversation Utility Advocacy Information Identity
Source: Vivaldi Partners Research based on regression analyses of brand loyalty on social currency levers 17
20. Find out if 3. Customers or consumers are willing to
tell others about your brand or
social currency recommend it further. This advocacy for
is important your brand is one of the key value
for you drivers.
4. The more information customers or
consumers have about your product or
If you agree with some of the following service, the more likely they develop
statements, it is very likely that social preferences for your brand or business.
currency is an important driver for your By helping consumers to become
business and brand.
brand “knowledgeable ” you empower them to
knowledgeable,
share their knowledge with others.
1. Some of your customers or consumers
proactively talk about your products and
services with others. By engaging in »SOCIAL CURRENCY IS
these conversations, you can stimulate LIKE A GOOD JOKE […]
f th conversations and discussions
further ti d di i USING CONTENT […] IN
[ ]
by for example providing additional ORDER TO LUBRICATE A
talking points, perspectives and points SOCIAL OCCASION«
of view.
RUSS KLEIN
2. The social exchange with others
involving your brand is an integral part
of peoples’ lives. This exchange
provides an opportunity for you to build 5. Customers or consumers
invaluable utility for customers or develop a strong sense of
consumers by helping them to increase identity and an ability to express
their own social relevance, for example. themselves to others by using your
18
21. brand. You can create value for your
brand and business by reinforcing the
identity-driving elements of your brand.
6. The value of your brand is closely related
to the affiliation and sense of com-
h ffili i d f
munity it creates among other like-
minded people. You can create value
by promoting the community and
building
exchange
»WHERE IN THE LATE
opportu- 1700'S IT WAS MIRRORS, ,
nities. NAILS AND BUTTONS –
IN THE 21ST CENTURY
All brands
and busi-
THE SHINY OBJECTS ARE
nesses need ACCESS, ENTERTAINMENT
a social AND KUDOS«
strategy. If
t t
MARK SAGE
you can affir-
matively respond to three or more of the six
statements, your opportunities for building
value through social currency are
enormous.
If you would agree on less statements, you
must carefully evaluate the hidden potential
of social currency for your brand and
business. You might choose to focus on just
one or two levers of social currency.
5
PHOTOGRAPHY BY TIBCHRIS/FLICKR
22. How jetBlue
enables a
strong sense of
community
At first sight, the airline industry seems to
be, by definition, a social category. There
are not many brands that could claim
bringing together thousands of people in
bi i t th th d f l i
IR NES
one place every day. Airline brands can.
But does this given trait of mass transpor-
tation allow airline brands to get a head
start over brands in other categories in
terms of social currency?
RLIN
After all, most of the social encounters
around air traveling would seem rather
futile and random to many.
On the other hand, airlines have been
known as early pioneers in creating and
nurturing customer communities via
frequent flyer and other loyalty programs.
Hence, studying social currency in the
context of airline brands promises to be an
interesting and worthwhile trip to take.
23. In our study, jetBlue turns out as a role are part of a community through the brand.
model for the entire airline category. With a Not surprisingly, trust with the brand is very
social currency score as high as 65% it out- high (See CHART 1).
performs legacy carriers such as American
The deep integration in the company’s
Airlines (48%) or Delta (37%). Only Virgin
strategy may b ill
be illustrated by the new
db h
and Southwest Airlines can keep pace with
jetBlue terminal at New York’s JFK airport.
jetBlue’s performance in the social arena.
Rather than constructing a merely functional
Diving deep into the specific characteristics terminal for departures and arrivals, focus
of the different airlines’ customer bases we was laid on human interaction. The waiting
have found a specific social trait to jetBlue area mimics New York City landmarks, such
that no other airline can claim to this extent: as the steps of the Metropolitan Museum of
A close-knit customer community. First, the Art, where travellers can exchange with
majority of jetBlue customers can identify each other physically or virtually. In addition
well with other jetBlue customers. More- to capturing the hustle and bustle of NYC,
over, 61% of jetBlue customers feel like they the terminal creates a community feeling.
AIRLINES: SOCIAL POTENTIAL IS TAPPED RARELY
CHART 1 CHART 2
“I could rely on this brand to solve
any problems”
Sense of community
61%
Trust in brand 78%
84%
0% 10%20%30%40%50%60%70%80%90%
Source: Vivaldi Partners social currency survey, Average Top2-Box-Scores on a 5 point scale across beer category 21
24. CATEGORY RANKING
# Brand Social Currency
1 JETBLUE 65%
2 VIRGIN 58%
3 SOUTHWEST 54%
4 CONTINENTAL 53%
5 AMERICAN AIRLINES 48%
6 UNITED 42%
IR NES
7 DELTA 37%
SOCIAL CURRENCY MAP
RLIN
high
BRAND LOYALTY
D
SOCIAL CURRENCY high
25. SOCIAL CURRENCY LEVERS
Affiliation Conversation Utility Advocacy Information Identity
67% 72% 51% 75% 55% 69%
57% 62% 52% 63% 57% 57%
50% 64% 41% 72% 44% 53%
52% 55% 41% 69% 45% 59%
49% 48% 39% 53% 47% 52%
41% 41% 33% 49% 42% 44%
41% 41% 26% 41% 33% 40%
BRAND PERFORMANCE INDICATORS
TAL
SOUTHWESST
CONTINENT
AMERICAN
JETBLUE
UNITED
VIRGIN
DELTA
Quality Perception 50 60 70 80 90 100
CONTINENTAL
SOUTHWEST
AMERICAN
JETBLUE
UNITED
VIRGIN
DELTA
Brand Trust 50 60 70 80 90 100
CONTINENTAL
SOUTHWEST
AMERICAN
JETBLUE
UNITED
VIRGIN
DELTA
Recommendation 50 60 70 80 90 100
Source: Vivaldi Partners social currency survey, Top2-Box-Scores on a 5 point scale 23
26. How social
currency sets
premium brands
UT MOT E
TOM TIVE
further apart
The automotive industry can be divided into
major categories by two dimensions:
domestic vs. imported brands and volume
vs. luxury brands. Interestingly, especially
the latter dimension also shows an effect in
terms of their social currency systems.
As high-involvement products, automobiles
offer a continuous platform for conversation
to both, volume and premium car owners.
Further, identification with other owners is
i hi h i d d f h
quite high independent of the segment.
However, premium brand drivers show a
much stronger sense of their brand’s
community. In that context peer recognition
becomes key whilst gaining valuable
information around the brand itself through
others has less effects on re-purchase
decisions. Inversely, volume brand drivers
show a lower need to affiliate with others,
but appreciate the value they can sift by
learning from other drivers.
27. BMW drivers form an exceptional example Honda for example, despite performing
for a perceived community experience as weak on trust (71%), has highly loyal users
two thirds feel a strong affiliation with other who actively act as brand ambassadors and
BMW owners. who directly draw value as individuals from
the exchange with other Honda owners
Luxury car b d show significantly hi h
L brands h i ifi l higher
(35%) – see CHART 1.
social currency levels in general, implying
that, with buying a car, drivers seek to not Ford, in contrast, seems to merely form
only enter a social peer group but also to identification levels between its drivers
grow as an individual by becoming an active through its heritage but cannot extend that
member. social belonging to also generate a strong
community feeling (see CHART 2).2)
Investigating individual brands more
closely, it becomes obvious that also volume For a domestic brand this should be a key
car brands can utilize social currency levers objective, as this also affects
to provide additional selling propositions. recommendation levels.
AUTOMOTIVE: VOLUME CAR BRANDS COMPETE ON SOCIAL
CHART 1 CHART 2
“Through other users of this brand Identity Affiliation
I get valuable information”
48% 37%
40%
35% 20%
0%
Source: Vivaldi Partners social currency survey, US Pre-Recall (December 2009) and Post-Recall (February 2010), Top2-Box-Scores on a 5 point scale 25
28. NAPSHOT TOYOT
How Toyota
suffered from
the gas pedal
UT MOT E
TOM TIVE
recall
T:
No surprise – Toyota’s recently admitted
quality problems heavily shifted owners’
SN brand perception.
After all, quality had been the essence of
the Toyota brand for the last two decades.
Before the news on malfunctioning gas
pedals surfaced, nearly every Toyota driver
would fully agree on Toyota’s exceptional
quality levels and reliability of its cars. Just
a f weeks l t th
few k later these scores d dropped d
dramatically.
In an instant, long-built brand equity
eroded.
Automobiles not only offer functional value
but also, by virtue of the fact that they
provide an important opportunity for a
person to convey his or her identity, have
always been very social products.
29. Toyota faced challenges in accessing these benefits than the erosion of its quality
value drivers in an American market; it had image.
to compete against Ford’s clear Americana
Fewer Toyota owners draw
association or the exclusivity offers of luxury
value from being a member
brands such as BMW or Ferrari.
of the T
f h Toyota community i
Against these challenges, Toyota managed now. Moreover, less than a
to provide a large share of their owner-base third would want to identify themselves
with a brand experience that successfully with other Toyota owners – a drop of 19%!
made them identify with and feel united to
This clearly raises another issue on the CEO
other Toyota owners. They earned social
agenda: For Toyota, renovating its brand’s
currency - an effort which served as a
social currency will be just as crucial as
safeguard against competition from other
returning to six-sigma standards in
Asian makes.
production.
However, now, after the recall, Toyota faces
a relatively worse decline in providing social
PRE POST RECALL
TOYOTA DRIVERS: PRE-POST-RECALL
l Quality perception wears away
Very good quality FROM 96% DOWN 16v TO 80%
Reliability FROM 92% DOWN 19v TO 73%
l Social bonding erodes relatively worse:
Affiliation (with other drivers) FROM 29% DOWN 8v TO 21%
Identity (through other drivers) FROM 46% DOWN 19v TO 28%
Source: Vivaldi Partners social currency survey, US Pre-Recall (December 2009) and Post-Recall (February 2010), Top2-Box-Scores on a 5 point scale 27
30. CATEGORY RANKING
UT MOT E
TOM TIVE
# Brand Social Currency
1 BMW 69%
2 MERCEDES 68%
3 LEXUS 66%
4 HONDA 54%
5 TOYOTA* 45%
6 FORD 44%
* Data presented in the tables on this page prior to re-call 2009/10
SOCIAL CURRENCY MAP
high
BRAND LOYALTY
D
SOCIAL CURRENCY high
31. SOCIAL CURRENCY LEVERS
Affiliation Conversation Utility Advocacy Information Identity
65% 81% 59% 77% 65% 70%
60% 76% 57% 81% 62% 72%
63% 75% 53% 76% 66% 65%
42% 67% 41% 75% 48% 52%
29% 66% 29% 69% 29% 46%
37% 49% 33% 46% 48% 48%
BRAND PERFORMANCE INDICATORS
MERCEDES
TOYOTA
HONDA
LEXUS
FORD
BMW
Quality Perception 50 60 70 80 90 100
MERCEDES
TOYOTA
HONDA
LEXUS
FORD
BMW
Brand Trust 50 60 70 80 90 MERCEDES 100
TOYOTA
HONDA
LEXUS
FORD
BMW
Recommendation 50 60 70 80 90 100
Source: Vivaldi Partners social currency survey, Top2-Box-Scores on a 5 point scale 29
32. Why big beer
brands carry a
social handicap
Beer is an unarguably social product,
regularly consumed in a social context.
Further, beer brands on average enjoy well
above average quality and trust levels (see
CHART 1).
Given its consumption context and also its
strong loyalty scores, one would expect that
beer brands should be able to leverage their
social nature. However, this only proves to
be the case for niche brands.
In a mass-market setting, beer is about
commoditized consumption, not about
ER
nursing a community feeling of consumers
of the same brand.
Where mass brands like Corona, Coors, or
EE
Miller are struggling, however, is when it
comes to a dialog about the brand. Ob-
viously people are enjoying the taste but do
not feel inclined to discuss their beer
brands. A different usage pattern can be
33. observed with niche brands, like Sam packaging innovations, like vented wide-
Adams or even Irish Guinness. mouth cans, temperature-linked packaging.
They provide their consumers with a product However, market-leading Budweiser proves
that not only stirs communication but even that there is a way to access social currency
has h bili
h the ability to f form communities and
ii d beyond the niche. A h
b d h i h Anheuser B h’ b d
Busch’s brand
provide a strong feeling of identification managers heavily invested especially in
with other drinkers of the same brand social media to generate more buzz and
(see CHART 2). affiliation around »Bud«.
Instead of providing a unique story around However, the case also shows, that they did
their brand, mass market brands instead not succeed completely. Such undertakings
seem to have, at the expense of their social need to be based on a consistent strategy
currency values, focused too heavily on and clearly be linked to a brand’s values.
developing their product strengths: mar- Still, there are ways for volume brands in
ginal, but socially irrelevant product and the beer category to create social currency.
BEER: STRONG POTENTIAL, BUT UNFOCUSED ENERGY
POTENTIAL
CHART 1 CHART 2
Quality Trust “I feel a connection to other users
of this brand”
89% 86%
47 57
Source: Vivaldi Partners social currency survey, Average Top2-Box-Scores on a 5 point scale across beer category 31
34. CATEGORY RANKING
# Brand Social Currency
1 SAM ADAMS 53%
2 GUINNESS 51%
3 HEINEKEN 47%
4 BUDWEISER 43%
5 COORS 36%
6 CORONA 33%
7 MILLER 28%
SOCIAL CURRENCY MAP
high
ER
BRAND LOYALTY
EE
D
SOCIAL CURRENCY high
35. SOCIAL CURRENCY LEVERS
Affiliation Conversation Utility Advocacy Information Identity
47% 57% 45% 66% 45% 55%
50% 55% 42% 59% 48% 51%
46% 54% 37% 60% 38% 46%
45% 48% 32% 54% 35% 46%
33% 39% 31% 41% 28% 44%
28% 38% 21% 44% 29% 37%
28% 26% 13% 44% 23% 36%
BRAND PERFORMANCE INDICATORS
MS
BUDWEISERR
SAM ADAM
GUINNESS
HEINEKEN
CORONA
COORS
MILLER
Quality Perception 50 60 70 80 90 100
SAM ADAMS
BUDWEISER
GUINNESS
HEINEKEN
CORONA
COORS
MILLER
Brand Trust 50 60 70 80 90 100
SAM ADAMS
BUDWEISER
GUINNESS
HEINEKEN
CORONA
COORS
MILLER
Recommendation 50 60 70 80 90 100
Source: Vivaldi Partners social currency survey, Top2-Box-Scores on a 5 point scale 33
36. Why buzz alone
will not build
social currency
Fast food represents a category with excep-
tional consumer polarization. When it comes
ST F OD
to choosing their favorite brand, fast food
patrons very quickly form distinct camps of
clear supporters and critics. Virtually any-
AS FOO
one with a minimum of fast food dining
experience will know an immediate answer
to the question: »Burger King or
McDonalds?«.
Hence, every fast food brand has its own
community of patrons that regularly
y p g y
consume, talk about or even defend the
brand.
Also, similar to the beer category, fast food
brands are clearly social-driven, as con-
sumption patterns are often embedded into
a broader social setting – meeting up with
friends, having a snack with co-workers or
similar.
However, in terms of social currency, Burger
King scores lowest overall of all fast food
37. companies in our study (21% - see CHART 1). The result: Burger King turns out last place.
This is really curious given the buzz the Only 20% of Burger King customers think
brand has generated through its social that they get to learn something new
media efforts around the scary looking King through the community (See CHART 2).
and the award-winning subservient chicken
award winning Similar poor results for the quality of
campaign. information being shared and the appre-
ciation of others’ opinions.
What the results of our study suggest is:
online buzz does not equal conversational Overall, Burger King’s social media efforts
value to customers. Only if conversations seem to have targeted too narrow of a target
are meaningful to customers, brands will group neglecting the social needs of its
profit from increased social currency among broader customer base.
base
their customer base.
The brand may have created conversation
Digging deeper, we have studied the extent that stayed “meaningless” both to the
to which whatever is said, the buzz, is majority of customers as well as to the
relevant to customers of a brand. brand itself.
FAST FOOD: BUZZ DOES NOT EQUAL SOCIAL CURRENCY
CHART 1 CHART 2
Social Currency Scores “Through other users of this brand I get
to learn something new”
20%
21 30 44%
Source: Vivaldi Partners social currency survey, Average Top2-Box-Scores on a 5 point scale across beer category 35
38. CATEGORY RANKING
# Brand Social Currency
1 DUNKIN‘ DONUTS 44%
%
2 STARBUCKS 42%
3 KFC 30%
ST F OD
4 WENDY‘S 30%
5 PIZZA HUT 30%
6 TACO BELL 28%
AS FOO
7 MCDONALD‘S 23%
8 BURGER KING 21%
SOCIAL CURRENCY MAP
high
BRAND LOYALTY
D
SOCIAL CURRENCY high
39. SOCIAL CURRENCY LEVERS
Affiliation Conversation Utility Advocacy Information Identity
40%
% 50%
% 33%
% 60%
6 % 33%
% 47%
%
53% 45% 31% 48% 35% 43%
25% 38% 19% 45% 23% 31%
25% 30% 20% 44% 24% 35%
26% 37% 15% 46% 19% 35%
22% 37% 18% 44% 18% 28%
18% 29% 15% 29% 17% 29%
16% 24% 16% 24% 19% 24%
BRAND PERFORMANCE INDICATORS
NG
D‘S
BURGER KIN
STARBUCKS
S
MCDONALD
TACO BELL
PIZZA HUT
WENDY‘S
DUNKIN`
KFC
Quality Perception 50 60 70 80 BURGER KING 90 100
MCDONALD‘S
STARBUCKS
TACO BELL
PIZZA HUT
WENDY‘S
DUNKIN`
KFC
Brand Trust 50 60 70 80 90 100
BURGER KING
MCDONALD‘S
STARBUCKS
TACO BELL
PIZZA HUT
WENDY‘S
DUNKIN`
KFC
Recommendation 50 60 70 80 90 100
Source: Vivaldi Partners social currency survey, Top2-Box-Scores on a 5 point scale 37
40. Why women love
sharing their
thoughts on
Clinique
In the skin care domain, male target groups
obviously tend to be less talkative about
IN C RE
their skin treatment.
Market leaders like Gillette have not built
KI CAR
significant levels of social currency at all.
Probably due to the functional focus of the
brand, even their loyal and satisfied (94%)
users do not share experiences or infor-
mation with each other (only 14% would do
so) – see CHART 1. Very popular and
»fun-brands« th t t
f b d that target a f t focused segment
d t
have fared better, however only managing
to create a limited sense of community (e.g.
only one out of four Axe users feels
affiliated to others).
Women across all ages, as opposed to men,
tend to seek social exchange regarding this
product category. Skin care remains a much
more relevant issue for females and peer-to-
peer distribution concepts like Avon’s are
hard to imagine within a male setting.
41. Therefore, it makes most sense to investi- common, challenges. They typecast women
gate and compare two female-centered – establishing the basis around which
brands: Clinique and Dove. women could form micro communities.
Clinique has successfully built a strong Volume brand Dove has been praised for its
community f li around i classical pre-
i feeling d its l i l re-launch around »real b
l h d l beauty«, which h
hi h has
mium positioning. Every second user claims gained them business success and a highly
that she identifies with other Clinique users authentic image. That said, Dove remains
(48%) and engages in conversations around unable to provide a sense of community, as
the brand (51%) – see CHART 2. In contrast the brand’s buzz is conversation worthy but
to many of today’s brands, Clinique would unsustainable. Additionally, by appealing to
not be a typical Web 2.0 protagonist
2 0 protagonist. every woman, the brand doesn’t encourage
woman doesn t
Instead it has managed to build social community bonds (e.g. women who use a
currency by really engaging its consumers specific product for their special skin type).
around its heritage and, importantly, by For Dove to gain social currency, it will have
acknowledging women’s unique, yet to translate real beauty into real community.
SKIN CARE: BRANDS AS PLATFORMS FOR ENGAGEMENT
CHART 1 CHART 2
“I can identify myself well with
Satisfied with brand other users of this brand”
94%
Do share experience
48%
14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Source: Vivaldi Partners social currency survey, US Pre-Recall (December 2009) and Post-Recall (February 2010), Top2-Box-Scores on a 5 point scale 39
42. CATEGORY RANKING
# Brand Social Currency
1 CLINIQUE 42%
2 AXE 37%
3 AVON 37%
IN C RE
4 DOVE 29%
5 NIVEA 23%
KI CAR
6 GILLETTE 17%
SOCIAL CURRENCY MAP
high
BRAND LOYALTY
D
SOCIAL CURRENCY high
44. The sportswear
quest for daily
PO TSW AR
ORT WEA life relevance
Community experience lies at the heart of
every major sportswear brand. Ever since,
iconic brands such as Nike, Adidas, or
Reebok have created and promoted com-
munity sports experiences to the fullest
fullest.
In the early 90s, Adidas launched their
hugely successful “Streetball Challenge”.
Similarly, Nike has engaged its brand in
numerous sports sponsorships from region-
al to global level over the last decades. With
the
th rapid emergence of th I t
id f the Internet and
t d
especially the social web in recent years,
major sportswear brands have moved into
the online domain to re-connect with con-
sumers. Various initiatives such as Nike+ or
miAdidas have been rolled out to create new
and meaningful experiences for consumers
around their brand.
In our study the smaller, fashion-oriented
sportswear brands take over the lead in
terms of social currency. Puma clearly
45. comes first with a social currency score of identity (60%) – being important levers to
50% followed by Sketchers (38%) and build social currency in the sportswear
Adidas (38%), the only global power brand category – the brand outperforms its
to reach a top-3 position. competitors.
This
Thi result comes as a bi surprise f
l big i from a Arguably, Puma’s strategic evolution to-
bl ’ i l i
traditional brand equity perspective as wards a lifestyle focus has helped the brand
powerhouses such as Nike and Adidas fall to gain extra social currency with consumers
behind. However, social currency does not that would not have been accessible for a
focus on traditional brand equity measures smaller player with a rather narrow
such as brand awareness. It measures the sportswear focus.
social value a brand provides within its own
It also apparently enabled the brand to take
customer base.
over a more significant role in consumers’
Compared to larger brands, Puma seems to daily lives – resulting in increased con-
have created the biggest social value. versation, affiliation, and identification bet-
Especially in the areas affiliation (45%) and ween Puma users.
SPORTSWEAR: BRAND FOCUS IMPACTS SOCIAL CURRENCY
CHART 1 CHART 2
Social Currency Scores
Identification with other users
60%
Affiliation with other users
30 50 45%
0% 10% 20% 30% 40% 50% 60% 70%
Source: Vivaldi Partners social currency survey, Top2-Box-Scores on a 5 point scale 43
46. INDUSTRY RANKING
PO TSW AR
# Brand Social Currency
ORT WEA
1 PUMA 50%
2 SKETCHERS 38%
3 ADIDAS 38%
4 REEBOK 34%
5 NIKE 30%
6 NEW BALANCE 29%
SOCIAL CURRENCY MAP
high
BRAND LOYALTY
D
SOCIAL CURRENCY high
48. AIL Why Amazon is a
retail success
but no social
NL E RETA
star
Perhaps as a consequence of today’s
information overload, customers especially
appreciate relevant information. Under-
standably, online categories, where infor-
mation is exchanged frequently, perform
well within the information lever.
Merely being information rich is not the only
critical success factor for social currency, as
the cases of Amazon and eBay show.
Amazon’s revenues might put it ahead of
g p
LIN
eBay’s game, but concerning overall social
currency, it trails (Amazon 42% vs. eBay
50%).
One cannot deny Amazon’s strengths,
because it does seem to be able to inspire
more positive conversation amongst its
customers (46% vs. eBay 37%).
However, it is challenged when it comes to
elevating these conversations into a more
sustainable sense of community.
49. Amazon’s review system does not en- that they “learn something new or fun”
courage users to connect with one another. through other eBay users (see CHART 2).
Therefore, it is no surprise that Amazon
Apple’s iTunes in return has woven itself in a
customers do not have a strong sense of
different way into its users lives. Beyond the
community or affiliation (Amazon 31% vs.
most probable A l H l effect, iTunes also
b bl Apple Halo ff iT l
eBay 44% – see CHART 1).
managed to change the listening habits and
Positive conversations are powerful tools, the management of music and thereby the
but these can be maximized, as seen with life around it.
eBay’s personal messaging system, to
Providing such values beyond the Apple-
encourage users to view each other as
typical lock-in, this led to a high degree of
reliable sources of information (Amazon
advocacy and conversation not only about
47% vs. eBay 58%).
music but about the application that en-
eBay has even managed to build a customer abled this new way of purchasing and
base – a community, rather – which believes constantly accessing the tunes.
ONLINE RETAIL: SOCIAL VALUE STEMS FROM INTERACTION
CHART 1 CHART 2
Brand users that feel like “Through other users of this brand
being part of a community I get to learn something new or fun”
31/44
31%
44% 43%
0% 10% 20% 30% 40% 50%
Source: Vivaldi Partners social currency survey, US Pre-Recall (December 2009) and Post-Recall (February 2010), Top2-Box-Scores on a 5 point scale 47