A New Form of Payment

Social Currency

An exciting new trend is emerging in the marketing field. Josie has mentioned this trend in her blog, and I want to elaborate on this concept a bit. It's a way for firms to get product into consumers' hands and spread awareness across social networks. It's referred to as social currency. Allow me to explain: A few weeks ago, during spring fashion week, Marc Jacobs set up a pop-up store and rather than charging money for his Daisy perfume, he charged only social media. The store included props and backdrops which customers could use to set up their own photo shoot. Once they were happy with their photo, they'd Instagram, Facebook, or Tweet about the experience with a hashtag #MarcJacobsDaisy, and upon showing that post to the clerk, they would receive product at no monetary cost. What's even more neat about this example is that the more creative the photos/posts were, the bigger/better the product that was given in exchange. 

Think about the perceived value of this transaction for the consumer: A fun and entertaining experience -- plus high-end perfume at no monetary cost. Now, think of the value received by Marc Jacobs: buzz about the product and the brand (this story was also reported by several news sources which is a bonus for the company). It's a win-win! 

There is a mound of research which supports the idea of social currency, especially as it pertains to our generation and the one behind us. In a nutshell, we love free stuff. But what's more than that, we are completely willing to post about a brand on social networks in exchange for free samples/products. It's quite interesting to think about how different firms with different products could use social currency as a way to achieve its marketing objectives.

Here's a video that explains the Marc Jacobs pop-up store: