A recent study by experiential marketing agency Gradient, shows that 82% of retail companies have increased their experiential marketing budgets over the last three years. 

The study, based on surveys and interviews with over 750 senior marketers and 15 C-suite executives, includes 152 specialists from the retail sector and reveals how retail marketers evaluate their campaigns, their satisfaction with outcomes, and the challenges they face.

Exploring Experiential Marketing in the Retail Industry

Marketing, at its core, is about promoting products or services to attract customers. Experiential marketing takes this a step further by creating immersive, hands-on experiences that allow consumers to engage directly with the brand. Instead of just telling people about a product, it invites them to participate in an event or activity that leaves a lasting impression.

In the retail industry, experiential marketing transforms the shopping experience into something far more engaging. It's not just about buying a product, but about creating memorable in-store rituals, hosting exclusive events, or using digital tools like augmented reality to bring products to life. 

For example, Gradient's campaign for Golden Goose blended skate culture with high fashion at an LA launch event, creating a powerful brand experience that increased sales and retail traffic. 

Retailers can leverage experiential marketing through physical events, collaborations, influencer-driven content, or even the metaverse, all to create deeper connections with their customers and enhance their overall shopping experience.

Key Insights from Gradient’s Study on Experiential Marketing in Retail

• 82% of retail companies have increased experiential marketing budgets in the last three years, allocating 10-30% of their overall marketing budgets to these efforts.

ROI Focus: Sales and Awareness

Retail marketers are prioritizing sales and brand awareness as the main objectives of their experiential efforts:

• 41% focus on driving sales, compared to the industry average of 22%.
• 34% prioritize brand awareness, exceeding the average of 19%.

This suggests that experiential marketing is primarily used to generate immediate engagement and sales rather than lead generation.

Measuring Success:

Retail marketers report high satisfaction in measuring the impact of their campaigns:

• 49% are very satisfied with their ability to measure ROI.
• 44% are somewhat satisfied.

These results highlight the effectiveness of their measurement tools and strategies.

Metrics for Success:

Key performance indicators for retail experiential campaigns include:

• 64% focus on earned media value (surpassing the 55% industry average).
• 51% prioritize social engagement, exceeding the average of 47%.

These metrics demonstrate how retail marketers leverage social platforms to amplify their campaigns' reach.

Key Challenges:

Despite positive results, budget constraints (49%) and internal cross-collaboration (52%) remain significant challenges. Retail marketers need better alignment across departments to fully integrate experiential marketing efforts with overall business goals.

Gradient, based on its study, has also created a dedicated page where marketers can find solutions to the top three challenges they face when launching experiential marketing campaigns. Explore these strategies here: Experiential Marketing Solutions.