Let's talk about social currency. Formally known as "Clout," this phenomenon was mostly understood as creators using social media to gain more followers, viewers, and eyes on their content. This resulted in increased social approval, brand deals, and large payouts.
Clout, or clout chasing, was seen as a negative, something that reduced authenticity and monetized human interaction and personality, inherently making these creators seem cheap and not to be trusted.
Unfortunately for those who looked down on these creators, circa 2013-2016, social media and its influencers did not go away but have grown into a 102 billion-dollar industry (Forbes) that provides the livelihood of families all over the world.
What does this tell us as business owners and entrepreneurs? The average consumer doesn’t trust business brands but will first trust their friends, family, and social media followers.
What are the origins of social currency?
Fast forward to 2019+, where a pandemic world allowed people to turn inwards and spend more time alone and at home.
During this time, home creators in spaces such as cleaning, homemaking, and DIY tips exploded, drawing in huge amounts of views and followers and allowing them to build their businesses and brands overnight.
Social currency is recognized by big brands, incentivizing them to partner with micro-influencers, small businesses, or personal brands. In July 2020, Instagram recorded 40% of branded deals and collaborations were with micro-influencers (LDRSGroup).
Research by Bocconi University’s Maximilian Beichert and colleagues discovered that nano influencers (>10,000 followers) yield an average return of more than $1,000 on a $50 investment. This is often equal to the worth of the free products or discounts they receive (Harvard Business Review).
Social currency is defined by the power that you are given, attributed to your following, views, and engagement. During this decade, your business can be built simply by the content you put out, the value you have to offer, and how motivated your followers are by your authentic presentation. As people begin to apply for jobs, social currency is a prerequisite to guarantee your popularity or value to companies.
You can become an asset because you have established yourself and are recognized by your community. This is worth just as much as money, if not maybe even more.
What does this mean for your business?
This sounds great for creators and personal brands, but what does this mean for your business?
Social currency is essential for your business.
Let me break it down for you from the perspective of your ideal client/customer.
1. Legitimacy:
If I Google your business, and nothing comes up, how will I know that you have experience, you're not a scammer, you don't have market share, or you are a better option than your competitors?
2. Proof:
If I search for your social media and find subpar images or videos of your products, how motivated am I to buy them? Is this first impression an accurate representation of your business/product?
3. Value:
If I look your business up online, can I see the value you will provide through your service or product? There needs to be a willingness on the part of the consumer to exchange money for your product. Does it look like it's worth the amount you're asking for?
4. Selling Point:
Competition is fierce, and with your competitors having larger marketing budgets, you're most likely fighting an uphill battle, thinking you're going to stand out because of your uniqueness. It is possible, and with a smaller marketing budget, your strategy can showcase what differentiates you in a way that makes you more desirable than your competitors.
5. Customer Reviews:
If I look up your social media, does it look like other people have already trusted your product enough to purchase it? Think about how many times you've looked for a restaurant. Are you trusting your dinner and health to the one with five stars and high-quality pictures or the restaurant with no reviews and no pictures? People want to know what they're getting.
6. Brand:
First impressions matter. It takes 5 seconds for a viewer to make up their mind about your business and takes seven more impressions to override that first impression. How does your brand come off? Is it perfectly tailored to meet the needs and likes of your ideal customer? If not, they will gravitate towards a competitor that does. Remember, especially now, people need to buy into the experience, the benefits, and the story you are selling alongside your product.
7. Reach:
Social currency is directly related to how many people are becoming aware of your business through your social media, whether it's videos, pictures, business listings, blogs, or every piece of content. It is an opportunity for more people to see your product. Even if each piece of content gets shown to 1 person, over time, it means that your content strategy is compounding to grow your business's social currency.
The bottom line
The bottom line is that social currency increases your bottom line. The best way to build your social currency to the level of being an asset for your business is to actively contribute to your social presence.
Here are my top recommendations:
1. Identify your ideal customer/client. Analyze what they want and their top pain points.
2. Identify how your product meets those pain points.
3. Create content to showcase your product while appealing to your customers.
4. Pair this with content that helps build your brand and create experience, and you'll be set towards a solid marketing plan that helps generate leads and meet your goals.
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- Social media advertising
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- And more.