
It’s the same old marketing story. Stand out. Be original. Do something different to connect with your audience. Yet in today’s increasingly competitive market, brands are having to be more innovative than ever to build genuinely lasting relationships with their customers.
As the dust of the last few years settles, experiential marketing has emerged as the triumphant successor to traditional loyalty programmes. At We Are Collider, we really believe in the power of experiences to create memorable, impactful interactions. We’ve written about it at length in our MARVELS framework, but in this blog, we want to specifically explore why experiential marketing is essential for rewarding loyalty and re-igniting connections with lapsed customers.
Ask and ye shall reward: the art of loyalty
The more loyal the customer, the more long-lived the brand. But if you want to strengthen your existing relationships, you need to sprinkle a little bit of magic over proceedings.
The “M” in our MARVELS framework, magic, is all about engaging the senses and creating memorable stories to transform ordinary interactions into extraordinary experiences. Brands can harness this pillar by offering them exclusive perks like early access to new products, personalised experiences, or VIP events. These rewards shouldn’t just be for influencers but also for dedicated customers. For example, a brand might host a special event where loyal customers can meet brand ambassadors, test new products before anyone else, or enjoy unique, personalised experiences.
These moments can also be integrated into larger brand activations, where the most loyal customers unlock additional or elevated experiences, making them feel truly valued and appreciated and forging a deeper emotional connection between brand and customer.
Magic In Action: Sephora’s Beauty Insider programme
Beauty Insider was a masterclass in customer loyalty, successfully cultivating a strong sense of community among the brand’s most dedicated customers. Top-tier members, or “Rouge” status holders, enjoy exclusive events, early access to new products, and personalised gifts which creates a sense of exclusivity and encourages a deeper connection between beauty brand and beauty customer.
Rebuilding loyalty with lapsed customers
Luring back lapsed customers can be a daunting task, but experiential marketing offers a powerfully effective way to bring people back to the table. By creating unforgettable and meaningful interactions, brands can reignite genuine interest and loyalty among former customers. According to the MARVELS framework, experiences that engage the senses (Magic) and involve social interaction (Sociality) are particularly effective.
Behavioural science supports this: demonstrating that in-person engagement creates stronger emotional connections and more vivid memories than digital interactions. These experiences can remind lapsed customers of the value and enjoyment they once found in the brand, encouraging them to return. Clever.
MARVELS provides a valuable lens for understanding the psychological factors that drive the effectiveness of in-person engagement. By engaging multiple senses and fostering social connections, experiential marketing taps into our motivations, emotions, and social influence. This multi-faceted approach creates a more immersive and memorable experience, making it more likely to resonate with lapsed customers and rekindle their loyalty.
The Big Debate: Customer Retention vs. Acquisition
In the marketing world, there’s an endless push for ‘more more more’ – more customers, more sales, more market share. While acquisition marketing is obviously important, it can sometimes be counterproductive to the overall strategy.
Research has shown that brand building and loyalty can be much more effective – and sustainable – ways to stimulate growth. Ultimately, it’s all about value (the ‘V’ in MARVELS) as by investing in retention through engaging experiences, brands can put themselves in a great position. By creating memorable, meaningful, valuable interactions, brands foster deeper connections and turn customers into something even better: advocates. This in turn strengthens loyalty and attracts new customers through positive word-of-mouth, which we’ll come onto later.
Value In Action: Airbnb
Rather than constantly trying to get customers, Airbnb recently shifted its strategy to focus on showing its existing users just how much it valued them. While it did take time to see the full results, this proved a much more sustainable way to grow as they built a stronger, more loyal community.
Investing in experiential marketing can significantly increase customer lifetime value by encouraging deeper emotional connections and loyalty. While acquisition is essential for growth, retention offers a higher return on investment, as by creating experiences that resonate with customers, brands can build lasting loyalty and a strong, devoted community. Our work with Waitrose at their Winter Food & Drink Festival exemplifies this, if we do say so ourselves. Check it out here.
Bringing it back to MARVELS… Experiences that engage the senses (Magic), transform the self, and tell a compelling story are particularly effective in building brand affinity. This in turn stimulates the pillars of “Value” and “Exchange,” providing functional benefits and interactive elements that keep customers engaged and coming back.
Word-of-Mouth Marketing: Amplifying Brand Advocacy
In the world of fast-paced, TikTok-hybridised, multi-platform engagement strategies, it’s sometimes easy to forget the basics. Word-of-mouth still counts (there’s that ‘sociality’ ‘S’ pillar again) and experiential marketing is often the best way to stimulate it.
According to Nielsen, 83% of consumers trust recommendations from friends and family more than any other form of advertising. This is because memorable experiences create strong emotional connections that inspire people to share their stories. When customers have a positive experience, they’re more likely to recommend the brand to their friends and family, leading to organic word-of-mouth marketing. Loyal customers are also more likely to make repeat purchases and engage with the brand over a longer period, a more sustainable and cost-effective way to grow compared to constantly acquiring new customers.
Sociality in Action: IKEA
IKEA’s “Big Sleepover” allowed customers to spend a night in their stores, creating a buzz that was widely shared on social media, enhancing brand visibility and customer engagement. MARVELS Framework: This leverages “Sociality,” fostering a sense of community and belonging among participants, which enhances the likelihood of sharing their experiences.
Experiences as the new loyalty currency
In the modern creator economy, experiences have become the new loyalty currency. Unlike traditional gifts or points, experiences can offer a similarly rewarding exchange – the ‘E’ in our MARVELS framework – that offers mutual benefits for both the brand and the customer.
They generate loyalty by creating memorable moments that customers are eager to share, amplifying the brand’s reach and influence. For example, instead of just handing out gifts, a brand could host an immersive event that not only wows attendees but also creates tons of shareable moments. It’s a win-win: the experience becomes more valuable than a traditional gift, and it generates both loyalty and content in the new creator economy. Experiences now offer far more mutual benefits, reaching beyond just those who are there in person.
Exchange In Action: Red Bull goes ‘stratospheric‘
We loved working with Red Bull on their European esports tournament ‘League of its Own’ because they are a truly visionary brand. Their Stratos campaign was no different. Instead of a traditional rewards campaign to boost customer loyalty, they jumped a man from space, as you do. Felix Baumgartner’s record-breaking freefall from the stratosphere captivated global audiences and solidified Red Bull’s image as a daring and innovative brand.
MARVEL(S)-ous connections and tying it all back together
We’ve talked a lot about MARVELS in this blog, and for good reason. The framework (Magic, Adequacy, Relevance, Value, Exchange, Labelling, Sociality) has proven again and again to be integral brands in understanding how experiential marketing can build brand loyalty.
Each element plays a crucial role:
- Magic: creating unique, emotionally engaging experiences that stand out in memory.
- Adequacy: ensuring the experience meets and exceeds expectations, providing comfort and professionalism.
- Relevance: tailoring experiences to align with the audience’s personal values and goals
- Value: offering functional benefits and mental stimulation through the experience.
- Exchange: encouraging physical interaction and participation to deepen engagement.
- Labelling: clearly branding the experience to reinforce brand identity and recognition.
- Sociality: fostering social interactions and a sense of community among participants.
By incorporating these elements into their strategies, brands can create powerful experiences that not only attract but also retain loyal customers.
Conclusion
Experiential marketing is a brand’s secret weapon. It’s a powerful tool to build and maintain rock-solid loyalty. By rewarding loyal customers, re-engaging lost souls, and focusing on keeping customers happy rather than always chasing new ones, brands can create lasting emotional connections that are as strong as steel.
In today’s creator economy, experiences are the golden currency that drives loyalty and content creation. By using the MARVELS framework, brands can design experiences that are memorable, meaningful, and mutually beneficial. This ensures long-term loyalty and turns customers into brand advocates who can’t stop raving about your products or services.