Unlocking the Power of Experiential Marketing- white notes

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 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

XM

What it is not

• not the next catch phrase for consumerpromotions, or if you feel like running anevent.

• does not wholly describe the experiencehad at a brand event only.

• is not intrusive and reliant on mass branding• is not intrusive and reliant on mass brandingto 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.

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 ago3,000 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.

A Day in the Life – as a Consumer

Our brains have been programmed by our

experiences to listen to certain sensory messages,

and to shut out others.

This memory is rich with

Sensory information is derived from the environment.

Processed and integrated by sensations of sight, sound, smell, taste, emotion and

movement.

Depending on the depth of emotion of the experience,

they are being stored in either the long term memory bank,

of the short.

Processed and integrated by the body’s central nervous

system.

Used to plan and organise behaviour.

source: Sensory Integration – Theory and Practice

• 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?

The death of

January 3, 2007Advertising Tactics That Win Consumer TrustThis is the second document in the "Consumer Advertising Profiles, 2006" series.by Peter KimConsumer 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.

Consumers fight back

• Natural strength through evolution to 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.

HOW

Bringing it home: www.hellopeter.com

surveys.

• 88% choose a Brand solely or partly due to recommendation. – Millward Brown WOM

study 2006

• Ranking & Ranqueen outlet craze – Japan

• Barclays Bank

We all proudly own home broadcasting studios.

The Results

• 17% Rate at which above the line spend declined in 2005.

• 20% Increase in online spend in 2005.

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

The birth of Consumer-Generated Media (CGM)

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

Say hello to the Consumer Trust Index

MEDIA

MESSAGE

TRUST

So who owns the brand ?

CONSUMERBRAND

The Situation

Confusion Marketing TM

• Lexus April New York Launch

• Rain Forrest Restaurant

• Hoover Holiday

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• INSPIRES ADVOCACY & WOM

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

1. Advocacy – inspiring people to market on your behalf – is a valuable marketing channel.

2. Experiential engagement inspires advocacy.

3. Advocacy can be measured.

Things have changed

Yesterday

Push

Quantity

Today

Pull

Quality

Passive Active

Buy Impressions

Grab Attention

Talk to Customers

Communicate Values & Benefits

Create Experiences

Give Attention

Listen

Build Relationships

extracted: www.expagency.biz

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

Read

Hear

View ImageSee Visual

Watch Video

Experiential engagement inspires advocacy. . .

People Generally Remember Media Channel

10% of what they read

20% of what they hear

30% of what they see

Newspapers, RadioMagazines, E-mails

TV Advertising, Video Programs

Watch demo

Participate in workshopsDesign Collaborative Lessons

Stimulate, Model or Experience a lessonDesign/Perform/Participate in true immersion

50% of what they hear & see

70% of what they say & write

90% of whatthey do

Programs

Internet

Experiential

timesource: Jack Morton Worldwide 03/07

And don’t forget to speak

phone

face-to-face 72%

17%

“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%)”

0 20 40 60 80

other

online chat room or

blog

e-mail

instant message or

text message4%

3%

1%

3%

source: Jack Morton Worldwide 03/07

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 causethem to talk to others.

- 80% who had participated in pastbrand experiences reported theyhad told others.

- 9 in 10 consumers say what theymost want from marketers isinformation about the product/brandthat they can connect with.

- Consumers cite direct experienceas the most effective way to getthat information.

source: Jack Morton Worldwide

Insight

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.them.

3. Tools: Give them ways to spread the message.

4. Measurement: Track Engagement, Impact, and Advocacy.

NPS – Nett Promoter Score Measure

Detractors

Brand Advocates

Survey

Score0 - 6 7 – 8 9 - 10

Passives Promoters(consumers that will promote the Brand)

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

Example – Chevron site owners POV

Detractors Passives Promoters NPS

Engagement 3 13.04% 13 56.52% 7 30.43% 17.39%

Impact 6 26.08% 13 56.52% 4 17.39 -8.69%

Advocacy 0 0% 12 52.17% 11 47.83% 47.83%

Num

/

Tot

*

100

=

%

Consumer Experience – post campaignEase of Purchase Measure

The Consumer Experience Quality Measure

Moments

Of Truth

Quality

criteria

Metrics

Examples: Examples: Examples:

Researching

a product

Ease of findinginformation

Failing search requests

Buying a Error-free System errorBuying a product

Error-free checkout process

System error

Acceptinga delivery

On-line arrivals Actual deliverytiming

Requestingservice

Polite phoneagents

Number of complaints

source: Forrester Research inc. 06/07

1. Global XM Practice- Can You Smash Your Brand?

• “that place with the apples”

• examples in print – (as long as youdon’t forget the consumer benefit)

• McDonalds – no logo

• not just a ball

• I what?

• Disney approach

source: trademarked by Martin Lindstrom

2. Global XM Practice- 2nd Life

ON-line

• podcast

• Stoops & Jeff

• Asian Guys

• My GAP

• My Soda

• Justin Timberlake & You Tube• Justin Timberlake & You Tube

Virtual Life – [$1 Billion by 2010]

• SIMS

• Everquest

• Cube

3. Global XM Practice- Sensory

• Airbus A380

• Shopping in France

• Scent Zones

• Singapore Airlines

• The Apple Religion

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• Paint me a Car

• XMen

• Pfizer – South Africa

Pfizer - Viagra

Brand Opportunity

- Pfizer has many products available in S.A. but islittle known as a brand in it’s self.

- Viagra has strict legislations wrt advertising andpromoting.

Consumer Insight

- Pride plays the top most vital role in these middlemarkets, followed closely by Trust. If we are toengage these markets, the consumer benefits

case study

See Community commitment – buzz. Comfort in numbers.

Hear Be informed about personal betterment.

Touch Many first time opportunity in this environment.

engage these markets, the consumer benefitswould have to be blatant, substantial, comfortableand honourable. Treat me well, and I will be extremely loyal.

Intersection Strategy

- Create a reason for S.A. middle markets to beginusing and become comfortable with medicationsand there uses.

- Reach 2 opportunities by sub branding for Viagra with Pfizer.

Smell Dependant on ailment.

Taste n/a

Emotional Trigger

Sixth Sense MarketingTM

If this company does this to personally help my health them they must really care and make products that work.

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.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.

Checklist

• development of ongoing relationships.

• XM ignites emotion which inspires Advocacy, which becomes WOM.

• Consumer Benefit first.

• Incorporate a Random Act

• Use Celebrity Endorsement.

• Go mental

• Smash your Brand

• Operate with respect.

• Use Celebrity Endorsement.

• Use NPS & EPM

• Go On-line and see what is being said about your brand.

• Find Influencers.

• Supply tools to spread the word.

• Use the Power of 2nd Life.

• Use HUMOUR

• Be real, relevant and believable.

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 . . .

They can be your friends too. . .

• 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.

Design, Plan & Researchzanevanrooyen

Visual Sourcing & Formattingleannecox

AcknowledgmentsForresters Research Institute

AC NielsenIXMA

WikipediaJack Morton Worldwide

EXP AgencyMartin LindstromMax LendermanMax Lenderman

Eric HauserJIGSAW Experiential

Presented byZanevanrooyen

Project Touch Points TMCopyright ©