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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.

Related articles

• Chicago start-up mixes social media, loyalty plans
• Is Amex’s The Social Currency Cocial or Spin?
• Rewarding Points for Socializing

That was the question that sparked my interest today, as I read my Inc.com Today’s Small Business Newsletter. It was a post by venture capital blogger Mark Peter Davis who claimed that the all-important elevator pitch, relied upon by business start ups seeking investment bankers’ money, is kaput. Here’s a link to his post.

Entrepreneurs, The Elevator Pitch is Dead

I am not in the VC funding business. I work with entrepreneurs and well-established business people who want to get their messages placed succinctly online and in the media. Before I write any copy, make one phone call or send one email about my clients, I work with them to polish their key messages, and yes, that includes helping them with an elevator pitch. So I had a strong opinion today when I left this comment on Davis’ blog post:

Mark, as someone who spends a lot of time helping clients improve their messaging, I disagree that the elevator pitch is dead. My guess is it’s still alive in the VC industry too. No matter what business you’re in, a business person needs a strong pitch that captures folks’ attention and that’s what an elevator pitch does. It’s also a conversation starter and a way to get a dialogue going by teasing someone to ask further questions.

Also, if you work with the media — bloggers and/or reporters/editors who write for traditional newspapers, magazines, tv or radio — you’ll always need an elevator pitch. The media especially (and the social media crowd as a whole, in my opinion) need that one strong sentence that captures the essence of what you do, how you serve your customers and why it’s important in the first place. In fact, I believe anyone looking for a job should also have an elevator pitch that summarizes their strengths and skills. The elevator pitch should answer questions and get a conversation going.

Something else to consider — this is the era of short attention spans. We’re all multi-tasking as we communicate, so crafting an attention-grabbing elevator pitch about your business or yourself is one of the best ways to get remembered.
What do you think? Do you use an elevator pitch in your daily working life? What would your business be without one? I’d love to hear your thoughts.