Sam talked with Jane about the changing world of e-commerce and the rapidly growing role of Experiential Marketing - what it means for retailers, how it challenges traditional CRM and loyalty marketing practices both online & offline?
Experiential marketing is a growing trend which involves marketing a product or a service through experiences that engage the customers and create an emotional attachment to the product/service.
Physical and interactive experiences are used to reinforce the offer of a product and make customers feel as if they are part of them.
Experiences are positively related to customer's attitudes, mood and behaviours. They also represent a means through which a company can gain a competitive advantage by differentiating itself from competitors.
To achieve success, experience should be engaging, compelling and able to touch the customer's senses and capture his/her loyalty.
Nowadays, experiential marketing is getting more technologically advanced and personalised. The widespread of the Internet and the increasing competition among online retailers has led to the rise of Virtual Experiential Marketing (VEM).
VEM uses the Internet and its various channels to create an enriched and engaging experience by using visual and audio tools. VEM relies on an electronic environment that engages customers and arouses their emotional responses to create an unparalleled experience and consequently capture their loyalty.
The elements which characterize virtual experiential marketing are: sense, interaction, pleasure, flow and community relationship. Furthermore, affective involvement has been identified as a key factor which affects online purchase intention.
Thus, the online experience must emphasize an emotional appeal to the consumer in order to build purchase intention.