Factor 03 in Platformization: Social Currency
Vivaldi first defined social currency in 2009 after conducting research with more than 15,000 consumers and over 60 brands.
Vivaldi’s Platformization Potential Study is a forward-looking, comprehensive report that introduces the top S&P 500 companies such as Netflix, Pfizer, MGM Resorts, Nike, etc. with the most potential to capture exponential growth. We divided our analysis into two lenses: (1) the brand relationship between a company and its stakeholders and (2) how the company performs across the following five factors: The “Customer Centricity PLUS” Mindset, Value through Data and Analytics, Social Currency, Industry Position and Ecosystem Potential, and Agile Experimentation with New Technologies. Below we highlight the third factor.
FACTOR 03: Social Currency
An important determinant and factor is social currency, that is how a company fits or is part of the social lives of consumers or others, and the extent it engages with others in social networks, both offline and online.
Some companies express their point of view on social channels; they have a presence in consumers’ minds across multiple lines of communications or channels. They are responsive to consumers and employees, and operate like
a human ‘sense and respond’ mechanism. They express their opinion, as such they don’t push, they pull. They draw people into their orbit.
A good example is Salesforce, a juggernaut software company from San Francisco. It is clearly one of the most important voices in enterprise technology. Salesforce was founded only about 20 years ago with the mission to achieve the “end of software.” It branded its mission with the loved-and-hated “No Software” logo. It stood out as a unique company with a very different point of view and this has translated into over $13 billion in revenue today.
Salesforce isn’t only speaking out regarding the transformation of the software industry, it also rallies around many social issues that matter to everyone whether or not they use their products and services. It rallies business trade groups, CEOs, and politicians on social issues such as gay rights. Its CEO fires off social media missives on Twitter to support the advocacy of issues. Salesforce also built one of the largest and most prolific communities or networks. Once a year it organizes Dreamforce, which drew 170,000 attendees, and 400 partner companies in 2018. The event translates into enormous social currency.
The more a company has established or earned social currency, the higher its platformization opportunity.
Explore the full study here for action-oriented strategies that can help businesses build better and stronger brands for today’s consumers.