Experiential Marketing Delivers Engaged Consumers

Experiential marketing employs an arsenal of effective tactics ranging from nightlife marketing to campus activations, custom vehicle marketing to guerilla street teams, mall tours to word of mouth programs, and luxury marketing to publicity stunts.  Regardless of the tactic selected, there is one deliverable both client and agency agree is crucial — the engaged customer.

Without discounting the importance of acquiring new customers or re-engaging past customers (both essential), we believe experiential marketing can deliver results in the most sustained fashion by way of the long tail.   Be it the digital long tail of sustained content that feeds search, or the long tail of sales – all can be positively affected by events, experiences, and brand engagements that generate trial, consideration, adoration and conversation.

The Long Tail (image by Anup Shah)

Experiential Marketing Delivers Long Term ROI

The Advertising Research Foundation states in a recent study on experiential marketing that brand experiences “improve profitability by increasing both short-term sales and long-run brand demand… The tendency is to think they only have short-term impacts. On the contrary, the power of experiential marketing is shown in this study to go beyond short-term effects to generate a longer-term brand value.”

There isn’t a brand manager or CMO alive that would NOT want to get – and keep – 10-15% of their consumers “wagging.”  The lifetime consumers.  The new consumers interested in base, mainstay products.  The consumers interested in a company’s aggregate smaller product lines; and there’s good reason…Netflix being a great example.

Search engine optimization, word of mouth, and social media in general “wag” the Long Tail online with a constant supply of Flickr pics, blog comments, YouTube videos and comments, tweets and Facebook fan activity.  Brand generated content can get things started, but the real dividend of an experiential investment is consumer generated activity and its impact.

Experiential Marketing Delivers Lasting Relationships

Relationships begin with conversation, and at our shop that’s exactly what we sell.  We are conversant in sight, sound, scent, taste, touch, and the persuasive arts.

The Art of Conversation (image via tendaysontheisland.com)

It is in these conversations that brand advocacy is fostered, adopters become adorers, and new customers are won.  It is in these conversations that the prospects for a tail to grow long are greatly enhanced.  Brands can achieve both short-term and long-term goals with experiential marketing; it is a force multiplier in terms of real ROI…and that’s something to wag about.

As I sift through volumes of recent data and insight regarding social media (SM) and ROI, I am transported back in time. Long before Twitter and other SM platforms existed, we in the experiential marketing space faced the same brand team doubts and ROI questions:

• “How in the world can this expense be justified?”
• “How do we know if we got our money’s worth?”
• “Can you compare it to TV? We understand TV!”

A decade later, experiential marketing is an accepted entity while the “new kid on the block,” social media, is taking the brunt of industry skepticism. We experiential marketers must push for (and facilitate) the understanding of ROI in social media because we are inextricably linked by our disciplines’ abilities to significantly affect consumer mindset and – subsequently – consumer behavior. Our best practices bring out the best ROI in each other.

Experiential marketing is the epicenter, the nexus, the place where groupthink – or whatever you want to name it – happens. It’s where shared experience drives the sharing of the experience. It’s where the brand connects with the consumer, and the consumer becomes the conduit to their social network.

Because of social media, the energy of the brand experience is more easily broadcast to like-minded consumers. Engaged consumers at an event like Bacardi B-LIVE will share the experience with simpaticos in person and via Twitter, Facebook, YouTube, Flickr, etc. The digital ripple that emanates from the event is mighty, and it is measurable.

One tangible outcome of a powerful engagement such as B-LIVE is enhanced search engine optimization (SEO). A brand can climb the list in organic search by virtue of consumers blogging and driving traffic through comments on Twitter, Facebook, etc.. Give consumers a rich, sustained experiential and social media campaign experience to talk about, and they will do so. The more they mention the brand, the better the search results ultimately become.

It’s a finely knit garment, this blend of experiential marketing, social media, and SEO…but it’s real, it’s tangible, and it can be measured. It creates profound brand affinity and likelihood-to-purchase shifts in the consumer mindset.

For additional information about the ROI of social media, you may find the articles below helpful:

• HOW TO: Measure Social Media ROI
• 8 Predictions for SEO in 2010
• The Only Social Media Metric that Matters

I crack up every time I see a slightly inebriated sign waver in a soiled gorilla suit, frantically waving an offer for “$5 Pizza,” “Taxes Done Now” or “Buy a Lazy-Boy, Get a Free Plasma TV.

I created a not-so-scientific competition between a sign waver for a local pizza shop and a Google Ad Word campaign for Javelin, touting our experiential marketing services. The competition was full-on for a nail-biting 24 hours. Results?

IMPRESSIONS
Sign Waver – 22 (cars that drove by)
Google – 75,000

HOURS WORKED
Sign Waver – 2.4 (he was supposed to work 6 but ended up passing out)
Google – 24

ACTIVATION
Sign Waver – ? (I spoke with the pizza manager and he said, “it’s probably a waste but I pay him cash.”)
Google – 32 clicks

COST
Sign Waver – $20
Google – $10

So who wins?  Extrapolated over one month, Javelin’s Google Ad generates 1,000,000+ impressions and hundreds of unique visitors to the website (where they can learn more about our experiential marketing campaigns) while Pizza Shop’s frantic sign waver generates 3,750 impressions.  While Javelin is a casual office, showing up drunk in a gorilla suit is always frowned upon.  We’ll let you decide who the real winner is, Pizza Shop or Javelin…