Oct. 1, 2020
Most people have tripped over the phrase experiential marketing, but most of them don't fully understand its pros and cons. It is, at its simplest, an event set up by an event management company to allow consumers, current and potential, to interact with the company's products and services.
In the past decades, physical interaction was 'achieved' if a person walked past signs, flags and/or posters and read the info. Then the exhibition stands were born and had staff in attendance. In tough times the staff were replaced by digital displays. However, this is not an experiential event.
The point of events, particularly experiential events, is for companies to try to help customers connect and engage with their brands. Yes, chatting to a charming, intelligent person on an exhibition stand can be engaging, but one-to-one marketing is diabolically expensive. An experiential event can achieve a deep engagement with customers without one-to-one engagement.
The outcomes of your event, or experiential event, should be to foster customer loyalty and drive up customer lifetime values (CLV). CLV is the total amount of money expected to be spent on your products/services during a client's lifetime. This figure is critical as it helps you decide how much money to invest in new sales versus CRM.
To assist you, here are some pros and cons of using events or experiential events in your marketing bouquet:
The Pros of Experiential Event Marketing
Brand Spread and Social Media Fodder
As with all marketing, experiential event marketing aims to deliver a unique and memorable experience for your existing and potential clients. Events, especially experiential events, are the perfect partner to social media marketing. Social media loves experiential events. Influencers on social media especially love them if they hold viral value. You will see your events shared widely, and future events will be looked out for.
Grounded Or Garbage
Brands have to use multiple tools to prove their authenticity to their current and prospective clients. Experiential events marketing is a very strong tool to achieve this.
There are varied human-to-human interactions with brand ambassadors, brand champions, performers and influencers. Consumers are positively surprised by the unexpected experience versus potential standing around having to create their own entertainment at a regular event.
Through market touchpoints like this, they will change perceptions towards a brand. There are a variety of studies out there on the subject matter. Generally, the consensus of the studies is that >65 percent of attendees found live events better for gaining a deeper understanding of a product or service. >75 percent of attendees had an improved attitude towards the brand and >70 percent wanted to keep hearing from the company.
This shows events as an important influencing tool for brand credibility and consumer perceptions.
Another impressive statistic is that purportedly 97% of event attendees feel attracted to make purchases of the brand's products or services after an event experience. A quick follow up after events will bring your company quicker lead conversion.
Important data can be subtly collected at different points, or via different methods, at the event. This allows for remarketing to appropriate attendees after the event but avoids spamming. The funds allocated to the marketing budget are, therefore delivering excellent R.O.I.
Cons of Experiential Marketing
The Reaction Gauge
When an event is held for a broad audience, is it difficult to know if the event can be all-things-to-all-people. A bad reaction is often accredited to the audience, not understanding the 'amazing' product being presented to them.
The other important factor is that the good experience, had by attendees, MUST be easy for them to link back to the brand. That is where a professional is necessary for event management.
On the other side of the coin, the attendees may feel deflated, excluded or left out if an experience does not resonate with them. This is an R.O.I. fail.
If you want to effectively capture your client's and potential client's interest, hearts and wallets - an event manager needs qualified human effort. If the budget has an overly tight belt, then hiring intellect and other resources to create fail-safe live-marketing experiences is a big battle. Ultimately, this may affect the campaign's ability to be successful.
If you want the help of an effective event management company in Kuwait and a business building experiential event contact a professional, success-proven team today and let's turn your brand into many memorable moments. Alternatively, call us today on +(965) 22267520.