Experiential marketing is exactly as it sounds; a form of marketing that is all about creating experiences that leave a lasting impression of a business or brand on the audience.
Perhaps as a consumer, you’ve experienced this type of marketing without realizing it. Some examples of experiential marketing include product demos, samples, and pop-up shops which we’re all familiar with. When brands hold events to allow their customers to interact with the products and services personally this creates a truly meaningful engagement. This ultimately helps to gain customer trust and loyalty as well as enhancing customer lifetime values (CLV) too.
Though this may sound instantly appealing from a customer’s eyes, from a business perspective, there are both pros and cons to examine when considering EM tactics for your company or product. When strategically done, experiential marketing can have a solid return on investment (ROI) for your company. Let’s examine some of the main advantages of experiential marketing and potential drawbacks based on your needs.
One clear advantage of experiential marketing is that it allows your business to connect on a physical level with your customers. You can specifically target your audience via experiential marketing in a much different way than other marketing forms. Through EM, you are able to create a unique and memorable experience for your consumer, which people are likely to share via social media platforms. This means that an experiential marketing plan can be also easily be paired with a digital marketing plan.
People tend to share their memorable experiences via social media and word of mouth. This means more customers are attracted to your brain by the creation of one memorable experience. Creating these connections leads to long-term success.
The options for EM are not limited, which gives you creativity to make your business stand out from others providing or selling similar products or services. Creating a connection via live events, music, sampling, branded food trucks, and more leads to increased conversion rates and interest in your brand.
One potential disadvantage of experiential marketing is that it requires a clear grasp and understanding of your target audience. You want to make sure your marketing tactics are properly matched to the audience in mind. Without this, you risk creating a negative perception of your brand. However, this is true of almost all marketing initiatives and tactics!
Risk vs. Reward
It also may be difficult to foresee how the audience will react to your EM campaign, which makes it some form of risk. For many companies, a risk vs. rewards assessment needs to be analyzed to determine the feasibility of successfully launching an experiential marketing moment.
Another thing to consider is the budget associated with an experiential marketing campaign. In order to effectively capture your audience, a lot of effort and time is required. As such, this type of marketing involves a clear budget that is large enough to hire people skilled enough to take on such a task.
The success of an EM campaign is largely dependent on the ability to capture attention and create a meaningful experience for the audience. At Sweeter, this is what we specialize in. From mobile pop-up shops to branded food trucks, or complete mobile vehicle conversions, we’re here to bring your EM ideas to life! Ready to get started? Contact us today!