Check it Out: The Value of Social Currency
I have to be honest, every time someone mentions "social currency," I immediately wonder what the catch is. Yes, social media is a powerful marketing channel for brands and a great way to engage with consumers, but retailers know all too well that a slew of Facebook Likes or #mentions on Twitter doesn't always yield a strong return on investment. So, what's a mere 140 characters really worth to a brand? Apparently, around $20 bucks.
In a report by SumAll, a New York-based analytics startup, it was revealed that a single business tweet is worth $25.62 and a retweet is worth $20.37. The data analyzed was from the social efforts of over 900 of SumAll's customers, and included reviewing the connections between tweets and web traffic sales.
The amount of word-of-mouth publicity and brand advocacy gained from using social currency is considered priceless. Here are three creative ways retailers are using social currency:
Marc Jacobs: During February's Fashion Week, Marc Jacobs hosted a pop-up tweet shop featuring exclusive items for the brand's Daisy perfume. The tweet shop included a lounge, Wi-Fi, photo booth and interactive booths featuring user-generated content. When a customer posted to Instagram, Facebook or Twitter using #MJDaisyChain, a hostess would offer them products from the Daisy line in exchange.
The effort yielded more than 13,500 Twitter mentions of Marc Jacobs, 4,300 shout-outs and posts on Instagram, and more than 770,000 likes on the brand's Facebook page, according to a company press release. Daisy by Marc Jacobs has always had a strong brand presence on social media, but due to the overwhelming success of the pop-up shop, the company has increased its word-of-mouth publicity and number of brand advocates.
Adidas: Since its launch in 2012, social commerce company Chirpify has helped retailers such as Estee Lauder, Forever 21 and most recently Adidas increase their number of brand advocates through marketing on Twitter. The sports apparel and equipment retailer wanted to reach out to its millennial customers while leveraging real-time interactions with its social fans. During March Madness, Adidas launched a bracket-style social campaign for high school football players on Twitter and Facebook. The winner of the contest received Adidas’ Adizero football cleats for their entire team.