We’re excited to share our latest insights into the experiential marketing trends driving the Retail industry.

Our research includes perspectives from interviews with 15 C-suite executives and comprehensive surveys of over 750 senior brand marketers across more than 12 industries. 

Impressively, 152 of these specialists work directly in the Retail industry, representing 20% of our respondents and making it the most significant sector in our study.

The complete study, featuring detailed visual data and comprehensive analysis, will be available on our website soon. Meanwhile, we've crafted this exclusive preview tailored specifically for the Retail Industry that delves into how it leverages experiential marketing to create impactful brand experiences and maintain a competitive edge.

Over the past three years, 82% of Retail companies have increased their experiential marketing budgets, surpassing the average in other industries.

• Among the Retail companies we surveyed, 74% report revenues between $50 million and $1 billion. This is higher than the 40.98% average across other industries in our survey, suggesting that the brands involved in experiential marketing tend to be larger and more established.

• They allocate 10-30% of their overall budget to experiences or events, which is in line with the industry average.

• Over the past three years, 82% of retail companies have increased their experiential marketing budgets, with 32% reporting significant growth. This is notably higher than the 75% average across other industries.

Retailers likely see these investments as essential to maintaining brand relevance and customer loyalty in an increasingly digital and experience-driven marketplace.

Pauline, Gradient’s CEO says: “Post-covid, e-commerce is more prevalent, and experiential marketing is the way to make deep, emotional connections with consumers in the retail industry.”

Objectives: Why is the industry hosting experiential events?

• Key Objectives: Relationship-building (47%) and CRM (45%) are the primary KPIs, closely aligning with the averages.

The alignment of Retail’s KPIs with those of other industries highlights a shared recognition of the importance of fostering long-term customer relationships and leveraging CRM data for personalized marketing. 

In such a competitive space, building emotional connections with customers and maintaining engagement through targeted CRM initiatives are crucial for driving repeat business and customer loyalty. This focus also indicates an industry-wide shift towards more data-driven and customer-centric marketing strategies.

Pauline says: “Today’s exciting technology within experiential marketing gives consumers the chance to connect with a brand on a whole new level – building stronger and longer-lasting customer relationships; be it physical, digital, or somewhere in between.” 

ROI Priorities in the Retail industry: Sales and Awareness

Respondents prioritize Sales and Awareness as the most important ROI categories from their experiential marketing efforts, with 41% and 34% respectively ranking these as the most important. 

This is significantly higher than the overall average across all industries, where only 22% of respondents prioritize Sales and 19% prioritize Awareness as the most important ROI. 

In contrast, there’s less emphasis on Lead Generation as the most important ROI, with only 7% rating it as most important compared to an overall average of 10%. This suggests that experiential marketing is primarily a tool for driving immediate customer awareness and direct sales, rather than focusing on generating new leads.

A high level of satisfaction with their ability to measure the ROI of experiential marketing is also shown. Specifically, 49% of respondents are "Very Satisfied," which is the highest percentage among all the industries surveyed. An additional 44% are "Somewhat Satisfied," indicating that a combined 93% express a positive level of satisfaction in this area.

When comparing this to other industries:

• Financial Services comes close, with 43% being "Very Satisfied" and 48% "Somewhat Satisfied," totaling 91% satisfaction.

• Fashion also shows high satisfaction, with 40% "Very Satisfied" and 51% "Somewhat Satisfied," amounting to a total satisfaction rate of 91%.

• On the lower end, Tech & Digital marketers have 26% "Very Satisfied" and 66% "Somewhat Satisfied," indicating high satisfaction overall but with fewer respondents feeling "Very Satisfied" compared to Retail.

This strong satisfaction in the sector complements the emphasis placed on Sales and Awareness. 

Retailers appear to be confident not only in the outcomes of their experiential marketing efforts but also in their ability to measure these outcomes effectively. This suggests that businesses have robust mechanisms and tools in place for tracking and analyzing the impact of their experiential marketing campaigns, which likely contributes to their strong focus on driving immediate and measurable results, such as sales and awareness.

Metrics to measure success beyond sales: Earned Media and Social Engagement

Apart from the ROI KPIs, how does the industry measure the success of their events?

• Retail focuses on earned media value (64%) and social engagement (51%), which is higher than the averages of 55% and 47%, respectively, across other industries.

Retail’s emphasis on earned media and social engagement suggests that the industry values the amplification and viral potential of its experiential campaigns. 

By prioritizing these metrics, brands aim to maximize the reach and impact of their events beyond the immediate participants, leveraging social media and digital platforms to engage broader audiences. This approach is particularly effective in a consumer-driven market where peer influence and online visibility can significantly boost brand perception and sales.

Pauline Oudin, Gradient’s CEO says: “What drives User Generated Content are in-real-life and digital experiences that allow the consumer to live the product’s story – ultimately, maximizing a brand’s reach and affinity.” 

Key Challenges: Budget and internal cross-collaboration

• Budget size and allocation (49%) and internal cross-collaboration (52%) are the biggest challenges.

  • This is consistent with those in other industries, though they slightly exceed the average in internal cross-collaboration.

These issues may stem from the diverse and often siloed nature of retail operations, where different teams (e.g., online vs. offline marketing) may have varying priorities. Addressing these challenges could involve more integrated planning and communication across departments to ensure that experiential marketing efforts are effectively supported and aligned with broader business goals.

Retail integrates with paid social and brand content creation

Brands focus on integrating experiential marketing with paid social and brand content creation reflects a strategic approach to amplifying the impact of events through digital channels. 

This integration is likely driven by the need to reach consumers across multiple touchpoints and to create cohesive, cross-channel experiences that reinforce brand messaging. By aligning experiential efforts with broader digital strategies, retailers can enhance the effectiveness of their campaigns and achieve greater consistency in their marketing communications.

Retail Industry Case Study: Gradient’s Experiential Marketing Campaign for Golden Goose

Pauline says: “Experiential marketing transcends pop-ups. Think of museums or stadiums. These are spaces where people go to enjoy activities or events. The same sentiment applies to experiences. What space does your brand want to show up in? For Golden Goose, it was a custom skate bowl.” 

The challenge

Golden Goose, the iconic Italian brand, aimed to make a bold impression in the American market by spreading their "Golden Spirit" from Venice, Italy to Venice, California. 

The Idea

Gradient crafted a surprising launch event designed to captivate guests and generate engaging cross-platform campaign content. 

Embracing the brand’s ethos of "perfect imperfection," we created a one-of-a-kind LA experience that seamlessly blended skate culture with high fashion for an exclusive late-night VIP party.

The solution

We transformed the famed Pink Motel into a living art piece and fashion hub, embracing the brand's core essence of 'perfect imperfection' and 'touched with life'. 

Skater (and Olympian) Cory Jeanau stole the show with a jaw dropping performance in the custom skate bowl. A plethora of brand and UGC content emanated from the experience, dramatically increasing brand consideration from Gen Z.

The results

• 32% increase in sales for the Hero Shoe (?)

• 28% increase in retail traffic post campaign

• +1 Billion earn impressions

Discover the full story behind our Venice Beach pop-up for Golden Goose and see how we made their "Golden Spirit" come to life