Social capital, as John Feland explains, looks at the strength of the relationship between people and their devices or products. Feland, who founded Argus Insights, became interested in the metric when online reviews were the primary source for examining what people loved and hated about their devices, before social media became an important factor in these measurements.
Apple’s innovation with the original iPhone was a particularly cogent example of social capital for Feland, who said he saw the mobile industry viewing the device primarily in terms of whether or not it advanced technology, versus the user experience.
“What you ran into was a situation where you had classic disruptive innovation, but not from technology — it was experience,” said Feland. “The technology, separated out for the iPhone, wasn’t that amazing. But it was how Apple brought it together to form a new experience that changed the way we all use devices today.”
Feland said that social capital actually ended up being “a leading indicator of revenues, of sales across market segments” and have held true for Argus’ predictions about the relative success of the iPhone 5S and 5C. Interestingly, he added, the passing chatter of the moment on social media isn’t always reflective of the social capital data provided by online reviews. Social media comments on “bendgate” and the new iPhone 6, for example, aren’t reflective of the device’s successful trajectory, he said.
Watch the interview with Feland from the Telecom Council Carrier Connections event below, and check out more video coverage on RCR Wireless News’ YouTube channel.
