What is Social Currency, and How Does it Affect Your Brand?

Social currency is the value ascribed to the number of followers, likes, and engagements that a business has on its social media accounts. Social media marketing has become a keyway to influence the decision of buyers, even going so far as to replace traditional advertising.

Today, businesses large and small can effectively market themselves online with little to no financial investment. In this new era of marketing, the social currency has emerged as a way to showcase brand recognition, as well as success.

What is social currency?

Social currency is also known as influence currency. It includes the total number of social media engagements that a brand has. A brand with higher social currency will have greater brand recognition than one with fewer followers, likes, and engagements.

It is useful for businesses to develop their social currency, as this can have surprising benefits. These include:

• Improved customer retention rate
• Improved lead generation
• More websites traffic
• Increased brand awareness
• Improved brand loyalty
• Improved authority and credibility
• Increased sales and revenue.

Businesses that want to reach large audiences, and increase their sales, will need larger social currency.

As per an article released by Backlinko on October 10, 2021, nearly 56.8% of the world uses social media. The internet is an active digital playground, full of people looking for interesting content to consume. Despite the regular availability of a ready audience, developing social currency can be challenging. The results can be rewarding and profitable for businesses.

Social currency is equivalent to how well known or recognized a brand is. There was a time when the more money investment brands put into ad campaigns, the more they would reap in sales. The times have changed. Now, business owners need to develop and retain brand loyalty in order to ensure that customers are buying from them.

Without social currency, brands will find it increasingly difficult to scale and grow over time.

How can a brand improve its social currency?

Businesses need to consider actively working on developing their social currency. This can enable them to reach larger audiences while developing their brand narrative and image. Here are some ways businesses can improve their social currency:

Have profiles on relevant platforms

While businesses do not need to open accounts on every social media platform, they do need profiles on the most popular ones. What's popular for one type of business may not be the same for another. For that reason, business owners should find out which platforms their target market is using and create accounts there.

Post quality content

When it comes to developing social currency, content is king. The way to stand out against the competition is with the help of great quality content that's posted at regular intervals. This content should have a direct correlation to the brand and its products or services.

Ask questions and engage

To generate conversations, business owners will need to actively start those conversations themselves. They can do so with the help of questions, as users tend to reply to these often. Should people comment on a post or ask a question themselves, these should be replied to immediately.

Build a community

People enjoy being in online communities. People and brands with high social currency often have dedicated communities that follow their every move. As a brand that's only just developing its social currency, consider building a community right from the get-go.

Conclusion

Social currency is the value ascribed to the social presence and reputation of a brand. Use these tips to develop social currency, or work together with a branding agency, to build social currency.

Author Bio:

Chloë Donian

Chloë is a digital marketing strategist, consultant and team member at Luden Marketing. She loves living the laptop lifestyle and enjoys all things digital. She enjoys living life to the fullest and always spreads sunshine and positivity wherever she goes.