View more on these topics

Blue Sky

If the aim of marketing is to make selling superfluous then the aim of experiences is to make other forms of marketing superfluous.

By creating marketing experiences – compelling and frequently offbeat physical or virtual places designed to attract new customers and rekindle the interest of customers – companies generate additional demand for core offerings. The experience may be poles apart from the company&#39s core manufacturing or service business, but it becomes the entrée for a relationship and a host of potential transactions.

Companies which understand that the experience is the marketing find their venues create so much goodwill (and economic value) they completely forgo traditional advertising. Some marketing experiences generate enough revenue to pay for themselves.

Consider a strategy by ING Direct, a retail bank with no physical branches. To promote its banking business among potential customers, it opened a cafe in New York. It serves coffee in a pleasing environment with a lounge where patrons can read newspapers, track the markets on plasma screens, use the complimentary internet access or simply chat or people-watch.

Customers can&#39t perform financial transactions in the ING Direct Café. Yet it yielded more than $200m in new accounts and mortgages within a year of opening. ING Direct realised that financial services had become so commoditised that an engaging experience was the best way to expose potential customers to its offerings.

Extract from Why Experience Marketing Pays by B. Joseph Pine II and James H. Gilmore at www.strategy-business.com“”

Recommended

Financial Health

While many people have benefited financially in the current housing market boom, there is a growing awareness that first-time buyers could be classified as an endangered species as they find it increasingly difficult to step onto the UK housing ladder. With the National Institute of Economic and Social Research reporting that housing price growth will […]

Launch of financial services specialist creates 250 jobs

Credit Centre is a specialist financial services organisation that caters for the specific needs of the 7.6 million people who are unable to obtain a mortgage or personal loan from a high street bank or building society. The organisation has launched the first phase of its recruitment campaign as it opens its head office in […]

RICS records first house price fall in a year

The decline follows a run of three interest rate rises in just four months over the spring and summer. RICS says prospective buyers have taken heed of rising borrowing costs and warnings from the Bank of England, though there are few signs that a significant market downturn is around the corner. With fewer people registering […]

Is there any need for another trade body?

The Chartered Insurance Institute this month launched the Society of Mortgage Professionals and is looking to invest £2m in it to help brokers become better qualified and increase their professionalism. Richard Fox, currently compliance director at the MCCB, is to be SMP&#39s chief executive from November 1, the date it will be up and running. […]

Partied out and penniless

December has left me destitute. My piggy bank lies broken and empty, my lunchtime meal deal feels like an extravagant expense and I’m down to the Bountys in my box of Celebrations. But I won’t mourn my dearly departed pennies. Between buying gifts for loved ones (then deciding to keep them for myself) to treating […]

Newsletter

News and expert analysis straight to your inbox

Sign up