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Google+, Groupon, Spotify, LivingSocial Facebook, Twitter, LinkedIn and other social media networks may be capturing headlines, but there’s a quiet revolution going on that could change the way the next generation buys consumer items and transacts business. It’s the movement toward Social Currency, a development that is taking shape through corporate leaders such as American Express or small start-ups like Pegmo.com, based in the Chicago area.
Here’s the premise behind social currency: The best way for a business to strengthen customer loyalty and spread valuable word of mouth is to reward customers for engaging with them. American Express is trying this experiment in Isreal, where its Rewards customers earn points by engaging with AmEx on its Facebook Fan Page.
Chicago-based Pegmo is focussed (for now) on the shop local movement, rewarding creative “Pegs” when you Tweet, post a comment or photo, like, or check-in to the social media property of your favorite restaurant, store, or other local establishment. Collect enough pegs and you’re eligible for $5 to $20 gift certificates from your favorite merchants.
Chicago entrepreneur innovations expert Noel Burkman says social currency is the future, and he believes it will be the next big disruption to the way we interact with businesses. Burkman points to the start-up GiftRocket. Who needs to shop for gift cards when you have GiftRocket?
Burkman says you just visit the site and create a gift card for any establishment, which your friends and love ones can redeem through their mobile devices. Provide the name of a business for which you want to give a gift card. I love a Barrington, Ill. gourmet bakery called Ambrosia Euro American Patisserie. My husband can go to Giftrocket and purchase credits for me an Ambrosia Lemon Charlotte cake for my birthday.
Ambrosia’s not required to be part of any GiftRocket membership plan. They don’t have to be a part of anything. GiftRocket finds Ambrosia on Google maps, specifies the gift amount I’ll receive and sends me an email that I’ve got Ambrosia money in my pocket (well actually in my email). The next time I’m within 20 yards of Ambrosia, GiftRocket will deposit $20 in my Paypal account and I’ve got a decadent cake with my name on it waiting for me in the showcase at Ambrosia’s welcoming cafe. How easy is that?
Who needs cash when you’ve got Social Currency? Will you? How far will you go to engage AND transact socially? Would love to hear your thoughts.
And if you’d like to read more about it, check out these links.
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One of the things that I like about what Pegmo is doing is that you can interact with brands and earn stuff without disclosing your location, which makes it different from something like Foursquare. I know people who love Foursquare but it makes me (and many others) really nervous. Just thought I would point that out. (And I realize that Pegmo integrates with Foursquare for data points but that is different.)
Hmmmm.. very very interesting. I’ve been hearing a lot about this lately, and I do agree that it’s going to disrupt business at some level. Thanks for this post.
It sounds fascinating – and a little overwhelming. I’m not sure I want anyone to know when I’m within 20 yards of my favorite gourmet bakery!
You’re very welcome Ryan and thanks for leaving a comment. Hope you come back and visit.
Catherine, overwhelming is the best word for all the innovation coming out of social networks right now. It’s hard to keep track of it all, and if you invest the time learning one platform or tool, there’s no guarantee it’s going to be around in 5 years anyway. Thanks for taking the time to comment.
Pegmo seems like a very interesting idea, still a bit confused on it but I like the idea that even if you mention a business on twitter or like it on facebook you receive a peg.
Stefanie, what’s most amazing is that Pegmo is a business that’s only a few months old. We all have a lot of questions, and I also would guess that many have ideas on how to apply this concept on a much broader scale. It will be interesting to see how their business unfolds and grows over the next few months. Thanks for your comment.
Here’s another interesting blog that profiles Pegmo.com. It’s getting a lot of attention here in Chicago, and in Silicon Valley, and it’s rightly deserved:
Pegmo’s Creative Soup to Soul-cial Media Marketing
http://siliconangle.com/blog/2011/07/20/pegmos-creative-soup-to-soul-cial-media-marketing/