3 Ways Experiential Marketing Can Deliver R.O.I.
by: Ben Cohen, C.E.O.
When customers physically engage with a brand through customized experiences, it can have a transformative effect on their purchase behavior. A lot of companies rule out Experiential Marketing because of preconceived notions that it’s immeasurable. Yet, a 2015 EventTrack study shows that over a three year period, events and experiences have become more important in boosting brand perception and driving purchases, rising from 53% in 2012 to 62% in 2015. Hence why 79% of companies plan on using experiential marketing in 2017. Huzzah!
Among the many benefits of Experiential Marketing is in fact, its ability to deliver ROI. The results are highly quantifiable if you design them to have specific measures of success. According to EventTrack, 49 % of brands achieve an ROI of between 3:1 and 5:1; 29% percent say their ROI is 10:1. In reality, actual results will fluctuate based on the individual program, timing, placement as well as other elements. That said, before event activation, you need to make sure that your tracking tools are in place so that there are benchmarks for you to draw conclusions from.
The following are 3 ways Experiential Marketing will work for you.
1.Follow The Data
Experiential Marketing programs run for a predetermined amount of time. Monitor your sales, social media followers, website views and audience commentary before and after the start date. You can track direct communication brand ambassadors or teams and a potential customer. You can also easily track the number of signups to a particular service during a finite time period. After the event has closed, you can track any increases in social media followers, website views or audience commentary.. These are all definable activities which demonstrate the kinds of engagement that take place during the program.
2. Product Demonstrations Draw in Non-Believers
A live demonstration is unmatched in terms of how it can lead customers to purchase and experiential marketing allows you to change that. Once you engage customers in individual discussions, you have the opportunity to show how the product or service works in a way that is better than a television commercial.
You can provide an educational experience that the customers will appreciate and at the same time, build a relationship. Once the customer has a positive experience at the hands of your brand, they will become believers. This will in turn, motivate them to take action and purchase.
3. Create Authentic Customer Relationships
If you have a friend or a family member who starts a business, would you be inclined to buy their product? Probably, you know the personality behind the product, you like that personality, you know the story of the brand, and you want the person behind it to do well. It’s like the old Faberge shampoo commercial where you tell, a friend and they tell a friend, and on and on. At an experiential marketing event, not only will the product be demonstrated and the customer’s questions will be answered, but they’ll meet the employees, the brand ambassadors, they might learn the story behind the brand and how it came to be. The customer will automatically start to grow a relationship with the brand.