Unlocking the Power of Experiential Marketing- white notes


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by far the most comprehensive research conducted on the subject of engagement marketing.

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Unlocking the Power of Experiential Marketing- white notes

  1. 1. XM uses brand relevant experiences to engage key audiences while creating a forum where these audiences interact with a brand. It involves high levels of interactivity and sensory impact and seeks to elicit an emotional response among the target through a more personal level of engagement than previous methodoligy – Wikipedia Encyclopedia XM gives customers an opportunity to have a series of experiences with brands/products/services in order to give the consumer enough information to make an intelligent & informed purchasing decision. The term “Experiential marketing” refers to actual consumer experiences the brand/product/service to drive sales and increase brand image/awareness. Experiential marketing is the difference between telling people about features of a product/service or letting them experience the benefits for themselves. - IXMA Copyright © BAM Prepared by Zane Van Rooyen
  2. 2. XM What it is not • not the next catch phrase for consumer promotions, or if you feel like running an event. • does not wholly describe the experience had at a brand event only. • is not intrusive and reliant on mass branding to hopefully get someone to buy something. • does not work in isolated spurts. • not mass marketing. • Not a means to collect a list of consumer names (CRM), only to be used as an intrusion into their lives by mass mailings.
  3. 3. The desperation continues INTRUSIVE MARKETING • Streaking now a busy career option – Super Bowl & Athens Olympics, US Open & UEFA Cup • Branding on just about anything. • Jim Nelson’s E-bay auction of ad space on his body – Web firm CI Host. • The birth of TatAd. • Cadburys – June 2006 – salmonella outbreak. Waited 6 months before saying anything. • The Workflow Company leaves consumers and SARS fuming. • 560 – average daily ad messaging thirty years ago 3,000 to 4,000 – daily ad messaging today. (higher for younger consumers and growing every day) • Even branding in your face when you take a pee. • Janet Jackson & Justin Timberlake – the boob incident – now a 5 minute delay is enforced on CBS live broadcasts. Marketing isn’t working today. New products are failing at a disastrous rate. Most advertising campaigns do not register anything distinctive in the customer’s mind. Direct mail barely achieves a 1 percent response rate. Most products come across as interchangeable commodities rather than powerful brands.
  4. 4. A Day in the Life – as a Consumer Our brains have been programmed by our experiences to listen to certain sensory messages, Sensory information is and to shut out others. derived from the environment. This memory is rich with Processed and integrated by sensations of sight, sound, the body’s central nervous smell, taste, emotion and system. movement. Used to plan and organise Depending on the depth of behaviour. emotion of the experience, they are being stored in either the long term memory bank, of the short. source: Sensory Integration – Theory and Practice
  5. 5. The death of • Coke – total recall – Belgium 1999. • Nike – sweat shop campaign. • Wrong use of CRM lists • SMS bombardments • News media laced with planted materiel to look like news. – what’s fact and what’s fiction? January 3, 2007 Advertising Tactics That Win Consumer Trust This is the second document in the "Consumer Advertising Profiles, 2006" series. by Peter Kim Consumer trust in advertising can't get much worse. Across traditional and emerging channels, advertising lacks both trust and influence. However, marketers can still use advertising to connect with consumers by tapping into preferences of interaction and control. To regain trust and influence purchase decisions, marketers should take a customer-centric approach to advertising by ceding control and facilitating brand experiences.
  6. 6. Bringing it home: www.hellopeter.com Consumers fight back • Natural strength through evolution to HOW survive by adaptation. Seek only that that connects. • Tivo – SA launch pending – late 2007 • Legal legislations imposed. Congress ban on telemarketers. Credit card cookie jar sealed later this year. • 76% don’t believe that companies tell the truth in advertisements. – Yankelovich surveys. • 88% choose a Brand solely or partly due to recommendation. – Millward Brown WOM study 2006 • Ranking & Ranqueen outlet craze – Japan • Barclays Bank The Results • 17% Rate at which above the line spend declined in 2005. We all proudly own • 20% Increase in online spend in 2005. home broadcasting studios.
  7. 7. The birth of Consumer-Generated Media (CGM) Why is CGM Important? First, consumers place far more trust in their fellow consumers than they do in traditional marketers and advertisers, according to research. For any marketer, advertiser or business professional trying to be heard or break through the clutter, understanding and managing this high-impact CGM is critical for marketplace understanding and success. – AC Nielsen Secondly, CGM is prolific and increasingly easy and inexpensive to create. Online discussion forms, membership groups, boards and Usenet newsgroups represented the first CGM wave. Blogs and online videos represent the latest wave of CGM that's easy and inexpensive to distribute…and influential in its impact. – AC Nielsen source: AC Nielsen Online 06/07
  8. 8. Say hello to the Consumer Trust Index
  9. 9. So who owns the brand ? MEDIA MESSAGE TRUST BRAND CONSUMER
  10. 10. The Situation Confusion Marketing TM • Lexus April New York Launch • Rain Forrest Restaurant • Hoover Holiday
  11. 11. Introducing XM What it is • it is a Methodology not a Medium. • the development of ongoing relationships with consumers. • major focus on sustained emotional connection, committing to a journey with consumers. • one to one communication creating a breakthrough connection. • INSPIRES ADVOCACY & WOM 1. Advocacy – inspiring people to market on your behalf – is a valuable marketing channel. 2. Experiential engagement inspires advocacy. 3. Advocacy can be measured. Our philosophy is based on maximum loyalty results from the connection of identity, value, and relationships. We recognise that the greater the connection, the greater the loyalty, and employees are customers too. - Disney Institute – The Business Behind The Magic
  12. 12. Things have changed Passive Yesterday Active Today Push Pull Quantity Quality Buy Impressions Create Experiences Grab Attention Give Attention Talk to Customers Listen Communicate Values & Build Relationships Benefits extracted: www.expagency.biz
  13. 13. We need to weave into our communication strategy, a Brand Experience that gives the consumer a better “feeling” for the Brand. A differentiable that emotionally defines it from its competitors. – Dave Boon – CEO - EXP International
  14. 14. Experiential engagement inspires advocacy. . . People Generally Remember Media Channel 10% of what they read Newspapers, Radio Read Magazines, E-mails 20% of what they hear Hear View Image 30% of what they see See Visual Watch Video TV Advertising, Video Programs 50% of what they hear & see Watch demo 70% of what they say & Internet Participate in workshops write Design Collaborative Lessons 90% of what Stimulate, Model or Experience a lesson they do Experiential Design/Perform/Participate in true immersion time source: Jack Morton Worldwide 03/07
  15. 15. And don’t forget to speak “Despite the growth of email, text-messaging and other online communications channels, traditional “offline” interactions account for NINE in TEN of conversations. Face-to-face is most prevalent (72%)” face-to-face 72% phone 17% instant message or 4% text message e-mail 3% online chat room or 1% blog other 3% source: Jack Morton Worldwide 03/07 0 20 40 60 80
  16. 16. So . . . . to sum . . The consumer is now in charge, is very aware of the tactics used to persuade, and is very good at smelling a pitch. They are not afraid to use their power to enforce that we respect them. 2006 Experiential Marketing Survey Key research findings - 75% say that participating in a face-to-face experience would be the medium most likely to cause them to talk to others. - 80% who had participated in past brand experiences reported they had told others. - 9 in 10 consumers say what they most want from marketers is information about the product/brand that they can connect with. - Consumers cite direct experience as the most effective way to get that information. source: Jack Morton Worldwide
  17. 17. Insight
  18. 18. Build & Measure Advocacy 4 Steps of Advocacy Building 1. Influencers: Find the right people and understand what motivates them 2. Breakthrough Connections: Create experiences that engage and inspire them. 3. Tools: Give them ways to spread the message. 4. Measurement: Track Engagement, Impact, and Advocacy.
  19. 19. NPS – Nett Promoter Score Measure Detractors Passives Promoters (consumers that will promote the Brand) Brand Advocates Survey 0-6 7–8 9 - 10 Score Engagement: “How would you rate this brand being a part of you and your life?” Impact: “How does this brand make you feel” Advocacy: Based on “the ultimate question:” How likely are you to recommend us to a friend or colleague (0-10 scale)? (questions can be adapted to be event specific) (accuracy can be intensified by asking before and after an event) (on camera) NPS (Net Promoter Score) = % of promoters - % of brand detractors
  20. 20. Example – Chevron site owners POV Num / Tot Detractors Passives Promoters NPS * Engagement 3 13.04% 13 56.52% 7 30.43% 17.39% 100 Impact 6 26.08% 13 56.52% 4 17.39 -8.69% = Advocacy 0 0% 12 52.17% 11 47.83% 47.83% %
  21. 21. Consumer Experience – post campaign Ease of Purchase Measure The Consumer Experience Quality Measure Moments Quality Metrics Of Truth criteria Examples: Examples: Examples: Researching Ease of finding Failing search a product information requests Buying a Error-free System error product checkout process Accepting On-line arrivals Actual delivery a delivery timing Requesting Polite phone Number of service agents complaints source: Forrester Research inc. 06/07
  22. 22. 1. Global XM Practice - Can You Smash Your Brand? • “that place with the apples” • examples in print – (as long as you don’t forget the consumer benefit) • McDonalds – no logo • not just a ball • I what? • Disney approach
  23. 23. source: trademarked by Martin Lindstrom
  24. 24. 2. Global XM Practice - 2nd Life ON-line • podcast • Stoops & Jeff • Asian Guys • My GAP • My Soda • Justin Timberlake & You Tube Virtual Life – [$1 Billion by 2010] • SIMS • Everquest • Cube
  25. 25. 3. Global XM Practice - Sensory • Airbus A380 • Shopping in France • Scent Zones • Singapore Airlines • The Apple Religion
  26. 26. 4. Global XM Practice - one2one / CRM / CEM • McDonalds – home from home • Starbucks – Japan • Nescafe – Japan • Starbucks – Boston • Subways – New York • Disney Philosophy • Paint me a Car • XMen • Pfizer – South Africa
  27. 27. Pfizer - Viagra case study Brand Opportunity - Pfizer has many products available in S.A. but is little known as a brand in it’s self. See Community commitment – buzz. Comfort in numbers. - Viagra has strict legislations wrt advertising and promoting. Hear Be informed about personal betterment. Consumer Insight Touch Many first time opportunity in this - Pride plays the top most vital role in these middle environment. markets, followed closely by Trust. If we are to engage these markets, the consumer benefits would have to be blatant, substantial, comfortable Smell Dependant on ailment. and honourable. Treat me well, and I will be extremely loyal. Taste n/a Intersection Strategy - Create a reason for S.A. middle markets to begin using and become comfortable with medications Emotional If this company does this to personally and there uses. Trigger help my health them they must really Sixth Sense care and make products that work. - Reach 2 opportunities by sub branding for Viagra MarketingTM with Pfizer.
  28. 28. case study Overview of Activation - Experiential mobile clinic set up within the community offering free medical checkups in a relaxing atmosphere. - Use Baby Jakes as celeb endorsement. Activation Objectives - To make Pfizer a recognised and trusted name. - To obtain research on ED sufferers in these markets. - To open channels of usage, trust, awareness and history within these markets. (Viagra) - Get there before the competition. Return on Objectives - Sales increased by 600% on each day of event. - found that men were totally open to assistance in this area of healthcare. - Affectionate sub branding. “Blue Diamond” - Ease of purchase dynamics strongly established.
  29. 29. Checklist • development of ongoing relationships. • XM ignites emotion which inspires Advocacy, which becomes WOM. • Operate with respect. • Consumer Benefit first. • Smash your Brand • Go mental • Incorporate a Random Act • Use Celebrity Endorsement. • Use NPS & EPM • Find Influencers. • Supply tools to spread the word. • Use the Power of 2nd Life. • Use HUMOUR • Be real, relevant and believable. • Go On-line and see what is being said about your brand.
  30. 30. Future think - Brand ownership now with consumer. - give consumers something to work with – play the game. (me selling proposition) - Always be aware of bloggers & viral trends. - Build on Mystery - Use Icons - Act fast - HUMOUR XM will not happen for you by itself – your need to live it, develop it. The choice is yours – you can stay as you are and rapidly watch how those around you adopt an XM methodology into their career practice that rockets them to new realms of success; or you could be one of them . . .
  31. 31. They can be your friends too. . .
  32. 32. • Remember experiential is a methodology not a medium. (Erik Hauser – founder Swivel Media San Fransisco and inventor of Brandshake MarketingTM) • When done right, it's the most powerful tool out there to win brand loyalty.
  33. 33. Design, Plan & Research zanevanrooyen Visual Sourcing & Formatting leannecox Acknowledgments Forresters Research Institute AC Nielsen IXMA Wikipedia Jack Morton Worldwide EXP Agency Martin Lindstrom Max Lenderman Eric Hauser JIGSAW Experiential Presented by Zanevanrooyen Project Touch Points TM Copyright ©