Event marketing is more than doling out samples. It’s hyper-targeting an audience and providing a full brand experience.
Each year, event marketing takes on greater significance. Though it remains composed of traditional PR methods, such as mobile tours and sampling, the practice has been elevated to a science and been given a loftier name: experiential marketing.
Those interviewed say brands are shifting more advertising dollars into experiential programs — everything from in-store demos to concert tours — and it is playing a more important role on the overall path to purchase. These hands-on experiences are viewed as a prime opportunity to interact directly with consumers, collect customer data and boost sales.
“It has become a much more strategic part of the overall marketing mix,” says Aidan Tracey, president of experiential marketing at Irving, Texas-based Mosaic, which has conducted “ambassador”-style events for brands including Dell and Bud Light Lime. “When you go directly to consumers with an experience that can be shared, you’ve got something with a definite reach, frequency and ROI. Now, especially with Facebook and Twitter, the impact can spread very quickly.”
As a testament to the growing importance of experiential marketing, Tracey says that his team is being called into strategy sessions up to a year in advance of a new launch. Moreover, he believes that experiential marketing fits into the broader context of shopper marketing because both practices aim to influence consumers along the path to purchase.
“It’s our job to come up with venues where we know we can find the target audience,” Tracey says. “Our market research team segments a consumer base and builds out a schedule based on locations that disproportionately aggregate [those consumers]. Often there is a call to action, such as a coupon or some offer that will give people a reason to go to the store. But if you don’t provide a compelling experience, nothing else matters.”
Targeting Events
Today’s marketers are tapping a wealth of demographic and sales data to develop a more targeted approach to events. H&R Block, for example, used a so-called “hyper-targeting” model to launch tax time educational outreach events in Latino communities in and around Los Angeles.
Working with San Diego-based The Aim Agency, H&R Block examined federal income tax returns and Census data to identify geographical areas — down to the block level — with high concentrations of Hispanic consumers who tended to file early tax returns and whose modest income levels and other indicators made them ideal H&R Block customers.
Aim also produced an analysis of purchasing behaviors with independent sales data from companies like Scarborough and Nielsen Claritas. Then, overlaying these two analyses, it developed an event profile that predicted the precise locations where the programs would have the most impact.
“The goal was to stop the erosion of sales in areas where H&R Block may have been heavily advertised but perhaps was missing a more personal touch,” says Jeff Symon, president and CEO of The Aim Agency.
Informational booths were set up where staffers could greet visitors and distribute brochures, while presenters gave talks on financial matters. Street teams engaged pedestrians in conversations about tax issues. The results from office locations near an initial H&R Block event held at a community center in Santa Anna were compared against control stores in areas where there were no events. Based on those results, the program was expanded across the Southwestern U.S.
“The advantage of hyper-targeting is that you can surgically define your locations and then replicate the program on a mass scale,” notes Symon.
All told, 345,000 intercepts were recorded during events over the course of 23 days in Los Angeles, San Diego and Albuquerque. H&R Block collected data from an 800-number printed on flyers and employee discount code redemptions to track the success of the events. Per H&R Block, offices that received street team activity vastly outperformed their counterparts, recording a 54.1% lift in new client check-ins; a 47.8% lift in returns completed; and a 29.6% lift in revenue generated.
“The results prove that if you can create a positive experience for your customers, it can have a great impact on your business,” says José Castañeda, divisional marketing manager at H&R Block, Kansas City, Mo. “We didn’t just hand out flyers. We worked hard to make a connection with people and establish their trust.”
Better Tools, Better Programs
It’s one thing to create an engaging experience for customers. It’s another to know if an event will translate into stronger brand loyalty or higher sales. New measurement tools are providing better clues and allowing marketers to more accurately track the results of their campaigns.
Chicago-based eShots, for example, has upgraded its Event Intelligence analytics platform to include three new tools: Event Benchmarking, which allows, say, a client running an auto show to compare metrics such as e-mail opt-in rates or test drives with an entire season’s worth of auto shows; Lead Quality Index, which uses survey data to measure how effectively a marketer is reaching its target audience; and Social Media/Viral Marketing Metrics, which tracks the volume of data/photo sharing on mobile phones and sites like Facebook, Twitter and Flickr.
“These analytics allow customers to do deep dives,” says Gretchen Young, director of product management at eShots. Clients in autos and financial services, as well as some CPG brands, are using the new platform. “On-site, marketers use dashboard reporting to collect data while consumers register at a kiosk, where they can answer survey questions,” she says.
Motor sports network Speed Channel debuted the program at a NASCAR event in Richmond, Va., back in May. Interactive areas included a green-screen photo booth, where visitors could have a picture simulated with an on-air announcer of their choice. Once the photo was received in an instant e-mail, it could be shared through mobile phones and online social networks.
“The eShots tools showed us how many people we are reaching beyond the event and how our fans’ social media habits differ from those of the general public,” says Nancy MacDonald, director of marketing and promotions at Speed Channel. Other data points of interest, she notes, included tracking opt-ins, an e-mail campaign and sign-up to the channel’s “Fanatic” fan affinity program. “We’re using all the data to adjust our schedule for maximum performance.”
Eshots’ new social media tracking tool may be of particular interest, given that so many brands are trying to figure out how the medium fits into marketing plans.
“We have applications that are hooked into Facebook, where clients can create up to five ‘canned’ status updates. For example, ‘I test drove the new Ford Fiesta!,’ followed by the brand’s website URL,” explains Young. “It allows users to post this to their Facebook wall. We can then track which updates were published.”
Going forward, industry experts say that technology will continue to redefine the practice of experiential marketing.
“Data capture used to be: name, address, phone number,” says Michael Gaffney, CEO of Ottawa, Canada-based InTouchSurvey Systems. “Now, it’s all about complexity and portability. With mobile phones and RFID, you can monitor traffic patterns at an event. So if it’s an auto show, you know exactly which cars attendees spent the most time viewing.”
Jean-Sebastien Lessard, president and CEO of Montreal-based Nomad Logic, sees emerging technologies like QR codes having an impact on consumer behavior and, therefore, the future of experiential marketing. “Consumers are seeking out more information by themselves,” he says. “They’re taking pictures of bar codes and downloading recipes. Experiential marketing won’t be so structured one day. It will require fewer ambassadors and become a lot more organic.”
Poor Execution
According to one recent survey, execution is often a problem. Earlier this year, New York-based ICC/Decision Services conducted an audit of 10 top supermarkets to obtain a quantitative assessment of in-store demo programs involving primarily food manufacturers. Over a 90-day period beginning in mid-January, the firm completed more than 400 store visits and assessed more than 400 demos in major U.S. metro markets, using shopper intercepts to gauge customers’ reactions to the sampling experience.
While program success varied considerably from retailer to retailer, there were some common problems to note in this small test. Among the worst findings: 42% of shoppers surveyed were not explicitly told of the product’s benefits; nearly a quarter (24%) of shoppers were not even provided the product’s name. One-fifth of brand ambassadors audited did not engage shoppers, and 15% of food servers were found to be in violation of health codes.
“The point is not that all demos are bad,” says ICC/Decision Services president, David Rich. “On the contrary, when they are done right, they are very effective in influencing buying decisions. The problem is that no one is objectively measuring these programs. So it didn’t surprise us to uncover these negative findings.”
Retailers, though, are taking action. Sam’s Club, for example, is making major improvements in its in-store demo program, which it relaunched in March under the new “Tastes and Tips” banner.
Working with its agencies, Crossmark, Plano, Texas, and Advantage Sales & Marketing, Irvine, Calif., Sam’s Club embarked on an extensive analysis of its previous events — for example, it tracked sales lifts for four weeks post-event and supplemented the data with supplier interviews — to target stores and brands for its revitalized sampling program throughout its 595 U.S. locations.
“All studies show that the No. 1 tactic to get people to buy a product is to sample it,” says Randy Douglas, vice president and managing director of Crossmark Events. “But you have to make sure the right person is in the store, the cart is set up correctly and the food is cooked perfectly. It’s all in the details. If a person is wearing an apron that hasn’t been washed, I’m not coming over.”
Jason Kidd, vice president of planning and integration at Sam’s Club, says that the demos’ overall presentation has benefited from more polished signage and cart branding, along with better preparation of staff through one-on-one training.
“Suppliers have detailed specifications as to how best to sell their products. The goal is to recreate those specs through the store experience,” says Kidd. “We’ve started to see some good early results from ‘Tastes and Tips.’ There’s a huge upside in food demos and some general merchandise categories, namely electronics and home cleaning supplies.”
Inform, Entertain and Sell
To be successful, experiential programs must inform and entertain while also meeting specific marketing objectives. It’s often a delicate balance to incorporate messaging without making participants feel like they are enduring a sales pitch.
This spring, for example, 7-Eleven’s “Road Trip Rally” sought to generate excitement with racing fans and strengthen the chain’s appeal among younger consumers, while also driving traffic to stores and boosting sales. Leveraging its Indy Racing League (IRL) sponsorship, 7-Eleven unveiled a three-week cross-country tour that culminated at the Indianapolis Motor Speedway. Contestants were selected through an audition process to form two, two-person driving teams in an “Amazing Race”-style competition that was captured on daily webisodes and catalogued on a microsite (711RoadTrip.com). The teams were given challenges and made “pit stops” at 7-Eleven stores to fuel up on food and beverages all along the route.
“The question that we asked along with our agency [Dallas-based Freshworks] was: Could you survive using only 7-Eleven stores to meet all your needs?” says Denise Jenkins, senior marketing manager at 7-Eleven. “Part of the goal was positioning the brand in a fun, self-deprecating way. We also wanted to draw more attention to our proprietary products like our fresh foods and grill items.”
Additionally, 7-Eleven looked to spike sales of products that were conducting price promotions as part of their IRL tie-ins. Kraft, Nestlé Waters, MillerCoors and Dr Pepper were among the participating brands. In-store merchandising support included endcaps and header cards with featured drivers such as Tony Kanaan and Danica Patrick.
“Manufacturers were definitely looking to increase sales of specific products. Overall, it’s tough to attribute store performance to the ‘Road Trip Rally’ program because there are so many other factors, including other promotions, that influence sales,” notes Jenkins. Instead, 7-Eleven was carefully studying engagement metrics. “Users averaged seven minutes on our microsite. We thought we might get three or four,” says Jenkins. “The program really has exceeded our expectations.”
Meanwhile, energy drink Xyience continues to conduct retailer events to leverage its official sponsorship of the Ultimate Fighting Championship. Star athlete appearances at retail stores have been the central element of the program, which is geared toward the brand’s core group of males aged 18 to 34.
“Many of our loyal drinkers are avid mixed martial arts fans. We want to give them a memorable experience so they’ll share it with others and bring new consumers to the brand,” says Xyience marketing director Jessica Hughes. “Of course, sales are the key metric. We look at the weekend prior to the event, during the event and a few weekends after that. We also do a survey of distributors and retailers to make sure it’s a win-win for everybody.”
In May, autograph signings by UFC fighter Wanderlei Silva at Albertsons in Tempe, Ariz., and Spencer’s Fresh Markets in Arroyo Grande, Calif., brought in a combined 1,100 fans. According to the company, those appearances significantly spiked sales.
“We’ve done as much as doubled our sales and we’ve maintained large sales increases over a long period of time,” says Xyience CFO Michael Levy. “That’s how I know our events are working.”
Published: August 2010. Source: In-Store Marketing Institute/Shopper Marketing.
