Social Capital – The New Measure of Success

social capital

Today, I wanted to share with you a great article I read recently that really talks about the importance of using social media to really engage with your customers.

Things like blogging, Facebook, and You Tube videos are simply not going away.  If a company does not choose to engage in social media to help advance their company, they will soon find that they will be left in the dust by their competitors.  This is real.  People want more meaning, more feeling behind the companies they use to get the products they want.  It is very important that businesses recognize this fact and take steps towards having relationships with customers that goes beyond just the products they are offering.

Social capital, a mix of respect, shared values, and loyalty, have more meaning to customers now than they have at any time in the past.  Customers want to know that you stand for something more than just your product.  They want to know that a company sees the larger picture and not just the narrow focus of the specific thing that their company specializes in.  Making a difference in this world is what is really important and if your company can’t show that they are doing that, they are doomed.

I think that the three action plans in this article are great and something that anyone involved in a business should really look at doing.  Doing these things will be vital to the success of your company so it would be much easier to start doing them now and help make the change, rather than doing them at some point in the future out of desperation to save your company.  As companies and as people, we need to make a difference and there is no better time than today!

Social Capital – The New Measure of Success

by Simon Mainwaring

Social media is disrupting how businesses need to measure success in the marketplace.  Of course, profits still matter, but as consumers connect up in communities and networks through social technologies, they are gaining leverage to pressure companies to think about more than just great products and services.

What they want from business is a better world, not just better widgets.   How does this impact small companies, entrepreneurs, and contractors?  The answer is, it affects you the same way it impacts global corporations that seek to powerfully develop and imprint their brands in the consumer’s mind.  When it comes to appealing to today’s socially-minded consumers, your company is no different than Nike, Pepsi, or Starbucks in the need to build social capital, not just financial capital.

Social capital refers to the appeal your brand has in your customer’s eyes.  It is composed of a mix of respect, shared values, and loyalty. High social capital derives from engaging with your customers in a way that creates a deeper meaning for them, not just selling them products or services.

Here are three key insights and tips for how you can accomplish raise your social capital:

1. Make your brand the chief celebrant of your customers’ community, not its celebrity.  In your marketing and advertising, stop thinking of your brand as the center of the universe.  Instead, reach out to serve the issues your customers care about.  Celebrate how your product or service has helped your community or make an offer to work with your customers (and their customers) to perform some action that benefits an issue that matters to them.  Show how your business is committed to creating a better life for people, not just a better bottom line for you.  The Dancing Deer Baking Company in Boston is an excellent example of this principle; the company donates 35% of the retail price of one line of its products to help end family homelessness.

2. Allow your story to become your customer’s story. Today’s consumers love to participate in shaping the image of the companies they deal with.  So invite them to do that.  Encourage your customers to blog about you (and blog with them), post YouTube videos about your products, and review your company online.  Make them equal participants in co-creating your story and reward them for their participation.  A great example of this is how Proctor & Gamble asked female bloggers to help them raise awareness of the need for clean drinking water in many areas of the world by blogging the issue.  For every person who read each blog and clicked on a special “widget” on the blogger’s site, P&G would donate a bottle of clean water.

3. Expand from a customer sales focus into a total service mentality.  There is a vast difference in these two manners of thinking.  Sales is narrow-minded, short-term, and fixed.  Service is broad-based, long-term, and dynamic.  A service mentality includes being willing to do many actions that attract and satisfy your customer, even things like donating to the causes your customers care about, giving your employees time off to volunteer their services in the community, or becoming an active participant in a cause that your customers care about.  A good example of this is the story of the company, Guayakì Yerba Mate, which began as a small enterprise whose mission, in addition to profit, was to help restore the South American rainforest. 

These are among the types of critical shifts any company must make to build social capital that in turn drives profits in today’s new social business marketplace.

Here’s your 3-point action plan to increase your social capital:

Step 1: Write out your brand statement.  Be sure to define it around your core values and purpose.
Step 2: Engage with authenticity, transparency and accountability. Evaluate each customer touch point to insure you are living and delivering on your brand promise.
Step 3: Act as the chief celebrant of your community, not its celebrity.  Make a list of several ways you can recognize and celebrate the beauty of your community.

Simon Mainwaring is the founder of We First, a social branding consultancy that helps companies, non-profits and consumer groups build a better world through changes to the practice of capitalism, branding, and consumerism using social technology. More information how brands can build social capital can be found in his book, We First: How Brands and Consumers Use Social Media to Build a Better World (Palgrave/Macmillan, June 2011).  Or visit http://www.wefirstbook.com

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About wmarsau

Most of the people who visit this blog already know me so it is kind of pointless to try to describe my life in this short little blurb. What is the purpose of this blog is the question. Over the course of this last year I have been exposed to some amazing people and have made personal development an important focus of my life. Being successful, not by the world's standards, but by God's has become my main focus. Mainly, I want to work to develop myself as a person who is kinder, reaches out to help those in need, and truly makes a difference in this world. To this end I am constantly reading and am exposed to so many differnet things along the way. These have been amazing and it is helping me grow so much. Then I started to think, "Why am I being so selfish?" You need to share with others these amazing things you are learning and being exposed to. That is where this blog comes into play. As I am reading and experiencing things that are truly amazing and life changing, I will be posting them on this blog. Obviously, I will not be able to post everything in it's entirity, but I will be summarizing them and letting you know the source of the article or book they come from so you can check them out later if you wish. I want this blog to be a place where you can go to often and be inspired and leave here with a smile on your face. I will be covering all kinds of different topics dealing with success and personal development. Topics like taking action, relationships, living to your potential, reinventing yourself, finances, leadership, presenting, goal setting, time management, etc. I will also be occasionally including topics on cooking, music, and gardening because they are special interests of mine. As a little disclaimer, I have given my life to the Lord and he is #1 in my life. I am his servant and everything I do in life is for his glory. With that being said, religion influences all areas of my life. There will be references to God in this blog because I can't seperate God from this or any other area of my life. I want you to know that if you do not believe in God, that is fine. That is your choice. This blog is open to anyone who wants to better their life. I will not be trying to influence or pressure anyone into having a relationship with the Lord from this site. Please don't feel uncomfortable. You can just read the portions of the blog that you wish to. I am inviting you to go on a journey with me. We will learn together to be the kind of people we were designed to be. Anyone can make a difference in this world, but it starts%
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