Stockholm’s Nordic Light Hotel have set a new digital marketing precedent in the hotel sector. Social media influencers are being offered a substantial discount, or in some cases a completely free stay at the hotel, at the cost of a few mere status updates. In exchange, the hotel hopes to create awareness with the help of these influencers while adding loyal customers.
As outlined on the luxury hotel’s website, popular individuals with 500 or more Facebook friends can receive a 5 percent discount on their booking, and super-savvy social media influencers with over 100,000 followers on Facebook or Instagram can stay at the hotel completely free!
With stays in the luxury hotel usually costing $360 per night, evidently, there is clear value for the hotel in attracting influencers to promote their brand. As reported by UPI: Nordic Light Hotel CEO Marcus Majewski believes the promotional benefits far outweigh the cost of giving away hotel rooms.
While digital marketers already are fully aware of the power of social media influence in promoting brands or products, the use of social media followings as a direct from of currency (or discounts) by hotel brands is still relatively unadopted.
Brands Accepting Social Currency
Could such uses of social currency gain widespread adoption? In theory, social currency could be valuable to many brands, and there have been instances of other brands rewarding social influencers in return for promoting a product or service to their networks.
Earlier this year, Marc Jacobs opened a ‘Tweet Shop’ during New York Fashion Week that enabled shoppers to purchase anything from perfume samples to higher value items like sunglasses and handbags, in return for sharing images with the hashtag #MJDaisyChain.
In a modern Warhol-esque recreation of the notorious ‘Factory’, Sour Patch Kids have established ‘the Patch’. A house where musicians can stay free of charge in return for doing what they love best – making music and occasional content for sharing via social media platforms.
An implementation of social currency in ecommerce can be found in Doorman, a San Francisco-based startup offering an app for consumers to place order for shipments. While the service costs $7, Doorman delivers for free to any customer posting a tweet on Twitter or status update to Facebook. Cofounder and CEO Zander Adell believes this simple exchange helps spread the company’s brand message while reinforcing loyal customers.
The development of social media promotion as an exchange between consumers and brands recognizes the growing importance of the channel as a means of raising awareness and reaching new customers.
In travel, for example, where a personal recommendation from a friend often has a considerable impact on a consumers choice of destination or hotel, a powerful social media influence can have a very positive impact on hotel bookings. The Nordic Light Hotel are acting as pioneers, in a move however that makes a great deal of sense.