XM uses experiential marketing to engage audiences through interactive brand experiences that elicit emotional responses. It aims to provide consumers with experiences of a brand or product in order to give them enough information to make an informed purchase decision, rather than just describing product features. Experiential marketing lets consumers experience benefits directly rather than just being told about them.

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

3. 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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

9. Say hello to the
Consumer Trust Index

10. So who owns the brand ?
MEDIA
MESSAGE
TRUST
BRAND CONSUMER

11. The Situation
Confusion Marketing TM
• Lexus April New York Launch
• Rain Forrest Restaurant
• Hoover Holiday

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Insight

21. 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.

22. 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

23. 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% %

24. 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

25. 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

26. source: trademarked by Martin Lindstrom

27. 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

28. 3. Global XM Practice
- Sensory
• Airbus A380
• Shopping in France
• Scent Zones
• Singapore Airlines
• The Apple Religion

29. 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

30. 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.

31. 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.

32. 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.

33. 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 . . .

34. They can be your friends too. . .

35. • 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.

36. 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 ©