New research proves consumers prefer brands that offer unique experiences. Many are even willing to pay more for unique brand experiences. Check out our global research on brand experience trends and learn how to apply these insights to your brand.

1. BEST
EXPERIENCE
BRANDS
A GLOBAL STUDY BY JACK MORTON WORLDWIDE

2. EXECUTIVE SUMMARY
BEST EXPERIENCE BRANDS reports the topline findings of
quantitative and qualitative research conducted in late
2011 among consumers in the US, UK, Asia and Australia.
This research strongly endorses the view that the brands
that will lead in the 21st century will be experience brands
– that is, brands that invest in building and continually
improving how people experience and interact with them
as a point of differentiation from competitors and a reason
for consumers to become customers and advocates.
This view is proven out in the following topline findings:
• aving a unique experience with a brand is important
H
in determining purchase We expect
unique brand
experiences
• wo in five consumers would pay more for a brand that
T
offers a unique experience
But how
BEST EXPERIENCE BRANDS also highlights the “experience do we do
that?
drivers” that brands can adjust based on their audience
and industry sector.
Additional insights from the BEST EXPERIENCE BRANDS study
will be released at a future date or may be requested by
contacting Jack Morton.
BEST EXPERIENCE BRANDS /2

3. TABLE OF CONTENTS
Brands are Verbs 4
About the Study 6
Key Research Insights: Experience Matters 7
Experience Brand Drivers 11
Experience Brand Trends 16
Learn More 19
About Jack Morton 20
BEST EXPERIENCE BRANDS /3

4. BRANDS ARE VERBS
Josh McCall
Today, more than ever, how a brand behaves is more
Every brand can be
important than what it says. Messaging is important,
but what really matters is how a brand engages and
an experience brand
interacts with the people who impact the business, from
its customers to the people who influence customers.
by understanding the
Given an intensely competitive and (in many regions)
experience drivers that
recessionary climate, there’s huge pressure on every
interaction with the brand, every touchpoint – from the
influence customers and
shopping experience to the customer experience and
beyond – to be effective, efficient and aligned with
optimizing these drivers
what the brand says it stands for. Additionally, social
media channels have radically amplified the capacity
to have the greatest
for consumers to broadcast positive and negative
experiences with a brand.
impact.
On a fundamental level, brands are verbs: what they do
matters more than what they say. And thus understanding
brands as verbs matters to business success.
Think about today’s most celebrated brands: from Apple
to Zappos, one of the things that stands out about leading
brands now is how many have established a unique
and differentiating experience. Whether it’s Apple’s
groundbreaking retail concept or Zappos’ legendary
customer service, this unique experience gives the brand
clear advantages over competitors.
BEST EXPERIENCE BRANDS /4

5. BRANDS ARE VERBS (CONTINUED)
These advantages include: differentiation and memorability
in a cluttered and competitive marketplace; the ability
to maintain price integrity despite commoditization and
recessionary caution; and increased brand awareness
through resulting earned media and word of mouth
(often more cheaply than by buying GRPs).
We at Jack Morton have long contended that brands
that invest in creating a unique experience – which have
come to be known as “experience brands” – will be the
marketplace leaders of the 21st century. Josh McCall is Chairman & CEO of
Jack Morton Worldwide
The BEST EXPERIENCE BRANDS study that you are about
to read represents our commitment to providing research-
based insights and data not only to prove out this assertion
– but also to understand why experience matters so
much to consumers, and how this varies across product
categories, geographies and demographic groups.
Our goal with this study is to help clients understand how
they can become an experience brand, or be a better
one. Because we believe that every brand can be an
experience brand by understanding the experience drivers
that influence their customers and optimizing them to have
the greatest impact.
The following pages highlight top-level findings,
but we invite you to contact us to learn more. Let us
know what you think, and look for more of our annual
BEST EXPERIENCE BRANDS studies in the future.
BEST EXPERIENCE BRANDS /5

6. ABOUT THE STUDY
BEST EXPERIENCE BRANDS is based on a survey sponsored
by Jack Morton Worldwide and conducted online by KRC
Research among 1,605 consumers between August 22
and September 2, 2011.
following definition:
Survey respondents were provided the
When you see the term “brand experie
nce”,
e with
it is referring to any of the interactions you hav
ser vices.
either the specific company or its products or
product or brand, your
This can include your own personal use of the
or people who represent the
conversations or interactions with employees
marketing, word-of-mouth,
brand, or anything you learn from that brand’s
es or social network.
recommendations from your friends, colleagu
Respondents were aged 18 and older and were drawn In addition to the results of the online survey reported in
from the US (1,000), UK (200), Asia (205 [Beijing, Hong the pages that follow, the BEST EXPERIENCE BRANDS study
Kong, Singapore]) and Australia (200). Data from the comprised a follow-up qualitative study with a smaller
sample for the US and for Australia were weighted by number of respondents relating to their actual experiences
demographics so that the results would more closely reflect with airline brands. Insights from this qualitative study, as
the distribution of adults according to the US Census well as more detailed quantitative findings relating to other
Bureau and the Australian Bureau of statistics. Total data product categories, will be released at a later date or may
were weighted to represent each of the four geographies be requested by contacting Jack Morton.
equally. All findings are statistically significant at a 90%
confidence level or higher.
BEST EXPERIENCE BRANDS /6

7. KEY RESEARCH INSIGHTS: EXPERIENCE MATTERS
Liz Bigham
I have a lot of conversations about experience brands. WE ASKED CONSUMERS "WHICH BRANDS DO
These conversations often falter when, inevitably, the YOU BELIEVE OFFER UNIQUE EXPERIENCES?"
question is asked: What are some examples of experience HERE'S WHAT THEY SAID:
brands? The answer I most often hear, and give, is
Apple. Interestingly, answering “Apple” often leads to an #1 #2 #3 #4
objection – one I’m confident the BEST EXPERIENCE BRANDS
study will help to dispel.
The objection goes: “I can’t be Apple, therefore I can’t be #5 #6 #7
an experience brand." The assumption is that Apple is sui
generis; only Apple gets to be Apple. Therefore, being an
experience brand is a rarified condition, achievable only #8 #9 #10
by a special few.
BEST EXPERIENCE BRANDS proves first and foremost that
being an experience brand is neither optional nor limited
to certain kinds of brands, Apple or otherwise. Put simply: [ fig. 1 ]
consumers want and expect brands to provide a unique
experience. Yes, consumers do indeed rank Apple as the
brand that provides the most unique experience across all
categories (see [ fig. 1 ] ). But more importantly, they reveal
an expectation that they should encounter unique brand
experiences everywhere, across many different product
categories (see [ fig. 2 ] ). Consumers reveal that they
will reward brands that offer unique experiences (and by
implication, the opposite is true, too: fail to offer a unique
brand experience and consumers will choose another
brand).
BEST EXPERIENCE BRANDS /7

8. No more punting on brand
experience: consumers expect it,
they will buy and pay
more because of it,
and brands aren’t
delivering.
“
44%
Strongly agree
“Overall experience “Previous unique
with a brand is the single experience is very important
biggest factor in whether I decide to when deciding what specific
purchase a product or service.” brands I use in the future.”
60%
Strongly agree
62%
Strongly agree
[ fig. 2 ]
BEST EXPERIENCE BRANDS /8

9. KEY RESEARCH INSIGHTS: EXPERIENCE MATTERS (CONTINUED)
Here are three things the BEST EXPERIENCE BRANDS I will have a unique experience with that brand in
study makes very clear about the need for all brands to some way,” over two in five (44%) of consumers
understand and invest in their unique experience: strongly agreed that they would pay more, and only
6% disagreed. Among those willing to pay a premium
#1 DIFFERENTIATED BRAND EXPERIENCES DRIVE for a unique experience, nearly four out of five (79%)
CONSUMER CHOICE strongly agreed that experience is the #1 factor in their
Most consumers surveyed across markets say that purchase decision. Not surprisingly, willingness to pay
experience drives – and in large part determines – their a premium is highest among those least impacted by
purchase decisions. For example, in answer to the economic uncertainty. It’s 34% higher among upper
question “My overall experience with a brand is the income respondents. In Asia, 58% of respondents
single biggest factor in whether I decide to purchase strongly agreed they’d pay more for an experience.
a product or service,” three out of five (60%) strongly Even in the UK, of the regions studied currently the
agreed; only 5% disagreed. Asked “How important region most impacted by recession among those
is a previous unique experience when deciding what studied, 28% of respondents still said they’d pay more
specific brands you use in the future?”, over three out for a unique experience.
of five (62%) also said a unique brand experience was
very important; only 1% disagreed. #3 TOO FEW BRANDS ARE MEETING CONSUMER
DEMAND FOR UNIQUE EXPERIENCES
If it was ever in doubt, this definitively establishes that The study revealed a big gap between the value
brands do not have a choice when it comes to their consumers assign to experience and the number of
experience: they need to invest to optimize experience brands that are actually providing them with unique
and leverage it as a point of differentiation. experiences. When asked to rate how unique their
past brand experiences have been, just one in four
#2 CONSUMERS WILL PAY MORE FOR BRANDS (26%) said their past brand experiences have been
THAT OFFER UNIQUE EXPERIENCES extremely or very unique. The chasm between the
Although most of the survey respondents dwell in almost two thirds of consumers (62%) who say unique
regions suffering from economic uncertainty, many will experience drives purchase, and the less than one third
pay more for brands that offer a unique experience. who say they’ve had a unique experience, suggests a
In answer to the question, “I am willing to pay a tremendous opportunity for companies to dramatically
premium price for a product or service if I know that elevate their brand experience.
BEST EXPERIENCE BRANDS /9

10. KEY RESEARCH INSIGHTS: EXPERIENCE MATTERS (CONTINUED)
Collectively, these three key insights should definitively
do away with any punting on brand experience:
consumers expect it, they will buy and pay more on that
basis, and there’s a big gap between demand and supply.
Of critical importance, the BEST EXPERIENCE BRANDS
findings also suggest that these patterns hold true across
different sectors. As part of the study, respondents were
asked in-depth questions about their experiences with a
service-driven sector (airlines); a product-driven sector
(mobile devices); and a web-driven sector (internet
retailers). Additional topline findings relating to these
sectors are covered in the following pages.
Liz Bigham is SVP,
Director of Brand Marketing,
Jack Morton Worldwide
BEST EXPERIENCE BRANDS /10

11. EXPERIENCE BRAND DRIVERS
So consumers expect unique experiences and will reward
brands that provide them. What can brands do about that?
Where to start?
Brands must understand
They can’t just decide to be more “experiential” (a term
how different experience
that has, by the way, become extremely ambiguous through
overuse, arguably since the publication of “The Experience
drivers influence consumers
Economy,” a 1998 Harvard Business Review article by
James Gillmore and Joseph Pine that brought experience to
the forefront of business leaders’ thinking). Community experience
In order to build a strong experience brand, it’s important
to understand what the drivers of experience are, and how
they variously impact consumer perception and purchase.
WHAT Discovery
Digital
experience INFLUENCES experience
Customer
experience
ME?
Shopping experience
Employee experience
Product
experience
BEST EXPERIENCE BRANDS /11

12. EXPERIENCE BRAND DRIVERS (CONTINUED)
As part of the BEST EXPERIENCE BRANDS study, consumers 1
were asked to rank the importance of a variety of factors T O P EXPERI E N CE D R IV E R S OV E R A L L
to their experience of brands. They were asked to rank
importance both to brand experience overall and to 1 Products and services that meet your needs
experience with brands in specific sectors (airlines, mobile 2 Understands your needs
devices, internet retailers). Some interesting insights about 3 Continues to serve and engage you after you’ve
these experience drivers emerge: become a customer
#1 DRIVERS ARE FUNCTIONAL AND BRAND- 4 Exceeds your expectations
FOCUSED, BOTH RATIONAL AND EMOTIONAL 5 Makes it easy to find information and buy their products,
wherever and whenever I want to shop
Across all sectors, geographies and demographics,
consumers are highly consistent in selecting both
transparently functional, needs-driven factors and those
with softer, more brand-driven associations as very
EXPERI ENC E D R IV E R S IM P OR T A N T 2
important to them when experiencing a brand [ fig. 3 ]. T O U N IQU E B R A N D E XPE R IE N CE
For example, the #1 driver across nearly all category
sets is as functional as it gets (“Products and services 1 Initial impression the brand makes on you
that meet your needs”), followed closely by the softer 2 Continues to serve and engage you after you’ve
become a customer
“Understand my needs”. Interestingly, the third-ranked
experience driver is a demand to be engaged and 3 Understands your needs
educated on an ongoing basis: consumers say it’s 4 Differentiates from similar products
important that experience brands “Continue to serve 5 Employs people who anticipate your needs
and engage you after you’ve become a customer”.
When top ranked drivers are correlated specifically
to those consumers who were most likely to say that 1. Data reflects top box rankings for “very/somewhat important”.
unique brand experience strongly influences their 2. Data reflects derived ranking based on correlation of driver ranking and
respondents who were most likely to state that unique brand experience is
brand choice, the experience drivers became more very/somewhat important in deciding brand choice.
brand-driven and less needs-driven [ fig. 3 ].
[ fig. 3 ]
BEST EXPERIENCE BRANDS /12

13. EXPERIENCE BRAND DRIVERS (CONTINUED)
#2 THE MOST IMPORTANT CATEGORIES OF Across all three, consumers indicated a significant gap
EXPERIENCE DRIVERS ARE PRODUCT between drivers that were ranked very /somewhat
EXPERIENCE AND CUSTOMER EXPERIENCE important and those they deemed excellent /very good
Looking holistically at the various drivers ranked in based on actual experience [ fig. 5 ]. In some instances,
the study and grouping them into different types of the gap exceeds a 20-point gulf between expectation and
experience [ fig. 4 ], it’s clear that on a general level, delivery. Clearly, there’s work to be done to fulfill both
product experience and customer experience are brand promise and consumer expectations
most influential for consumers, followed fairly closely
by shopping experience. Other drivers, although It’s interesting to note how well these findings about
still important, figure less explicitly in consumers’ experience drivers map onto what’s already evident
judgments of brand experiences. This suggests that about top experience brands. From Apple to Zappos,
brands may need to reprioritize programs and Amazon to Zipcar, top experience brands emphasize
partners to reinforce innovation in product experience and invest in innovating their product experience even as
as well as exemplary delivery across the customer and they orchestrate and perfect their customer and shopping
shopping experience. This is definitely not to say that experiences. They’re dedicated to continuing to serve
any areas of experience are unimportant, but rather to and engage consumers even after they’ve become
emphasize that in the minds of consumers, the areas customers. And they’re truly passionate about exceeding
of product, customer and shopping experience are the expectations.
forefront of conscious decision-making.
BEST EXPERIENCE BRANDS demonstrates that it’s not just
#3 ACROSS EXPERIENCE DRIVERS, BRANDS these leaders who are setting a path for experience
NEED TO CLOSE AN EXPECTATION AND brands: it’s consumers themselves who are demanding
DELIVERY GAP these very qualities from all brands.
There’s a sizable gap between the importance
LB
consumers place on varying experience drivers
and how those drivers actually deliver in reality.
For example, consumers were asked about actual
experience with brands in three sectors: airlines,
mobile devices and internet retailers.
BEST EXPERIENCE BRANDS /13

14. EXPERIENCES VALUED BY CONSUMERS
Average importance on a scale of 1- 7 for unique brand experience drivers, by category (mean score)
5.8 5.8 5.7 5.4 4.9 4.8
CUSTOMER COMMUNITY
EXPERIENCE EXPERIENCE
PRODUCT 5.9 Understands your needs 5.0 Supports causes that are
EXPERIENCE 5.8 Continues to serve and engage
important to you
6.1 Products and services that you after you’ve become a 4.8 Makes you feel part of a
meet your needs customer special group of people
5.6 Invents new ways to enhance 5.8 Exceeds your expectations
their products or services,
after you’ve become a
5.6 Educates you about how to use
their products and services
DIGITAL
customer and be a smarter customer, EXPERIENCE
after you’ve become a 5.0 Array of available digital
customer functions (apps, mobile, etc.)
5.3 Employs people who
DISCOVERY to engage with the brand
SHOPPING anticipate your needs
EXPERIENCE 4.8 Online presence (web site,
social networks, advertising)
EXPERIENCE 5.6 Initial impression the brand makes 4.5 Active online following or
5.8 Makes it easy to find on you community
information and buy their
5.5 How the brand differentiates itself
products, wherever and
from similar products and services
whenever I want to shop (in
store, online, mobile) 5.0 What a brand says about itself in
5.8 Provides an efficient marketing and ads
purchasing experience
[ fig. 4 ]
BEST EXPERIENCE BRANDS /14

15. EXPERIENCE BRAND DRIVERS BY SECTOR
SERVICE-BASED SECTOR / AIRLINES PERFORMANCE IMPORTANCE GAP
Products and services that meet my needs 44 70 26
Understand my needs 40 69 29
Provide an efficient purchasing experience 41 66 25
Make it easy to buy their services, whenever and wherever I shop 42 63 21
Exceed my expectations 34 62 28
Employ people who anticipate my needs 35 60 25
PRODUCT-BASED SECTOR / MOBILE DEVICES
Products and services that meet my needs 53 72 19
Understand my needs 43 69 26
Make it easy to buy their services, whenever and wherever I shop 51 63 12
Provide an efficient purchase experience 43 62 19
Exceed my expectations 40 59 19
Educate me about how to use their products and be a 41 58 17
smarter consumer, after I’ve become a customer
WEB-BASED SECTOR / INTERNET RETAILERS
Provide an efficient purchasing experience 60 76 16
Products and services that meet my needs 64 74 10
Make it easy to buy their services, whenever and wherever I shop 59 71 12
Understand my needs 50 65 15
Exceed my expectations 46 63 17
Initial impression the brand makes on me 45 60 15
[ fig. 5 ]
BEST EXPERIENCE BRANDS /15

16. EXPERIENCE BRAND TRENDS
Consumers more likely to
BEST EXPERIENCE BRANDS provides detailed insights into
varying considerations and influences for experience
value experience are
brands across sectors, geographies and demographic
groups. Although we will be sharing more detailed insights
prized by marketers
in future articles and presentations, the following top-line
trends stand out:
GEOGRAPHIC TRENDS:
Impact of brand experience
Consumers in Asia are far more likely to say that experience
is the single biggest factor in brand choice (71%, compared
to 60% overall). This should inform the strategies for brands
moving into Asian economies like China.
Willingness to pay more for experience
Asian consumers are more likely to be willing to pay a
premium for brands that offer a unique experience (58% vs.
28% in the UK). Australian consumers are as likely as US
consumers to indicate they’d pay more (45%).
Customer experience
In general, US consumers have the highest expectations
around customer experience: they’re most likely to identify
“Exceeding expectations” as a driver (75%). By contrast,
consumers in the UK are far less likely to cite “Exceeding
expectations” as a driver (57%); Asian and Australian
consumers are in the middle (67%). High expectations for
customer service in the US are an important consideration
as brands seek to compete in the American market.
BEST EXPERIENCE BRANDS /16

17. EXPERIENCE BRAND TRENDS (CONTINUED)
DEMOGRAPHIC TRENDS: Premium audiences outshine other groups
when it comes to valuing experience
Women more responsive and receptive Not surprisingly, those with higher incomes are far more
to experience likely to say they’d pay more for a unique experience.
Women are somewhat more likely to say that unique brand Also not surprisingly, those consumers willing to pay more
experience is very /somewhat important in determining are also far more likely to cite experience as the #1 factor
brand choice (64% vs. 59% among men). Women are informing their purchase choices (84% vs. 60% among the
also more likely to agree that they will pay a premium general population). Interestingly, the drivers influencing
for experience (47% vs. 41% among men). Interestingly, these “experience-seeking” consumers are far more likely
women are also slightly less likely to say that they’ve been to be customer experience drivers such as “Understands
engaged in a unique experience in the past (24% vs. 28% your needs”, “Continues to serve and engage you after
among men). Since women still make or influence most you’ve become a customer” and “Educates you about
household purchase decisions, this is an important insight how to use their products and services and be a smarter
for marketers. Also of note, women rank some experience consumer, after you’ve become a customer”.
drivers much higher than men: “Understands your needs”
(73% vs 65%), “Continues to serve and engage you after SECTOR TRENDS:
you’ve become a customer” (71% vs 62%) and “Exceeds
expectations” (72% vs 60%). Airlines
Consumers appear to suffer from low expectations based
Younger and middle-aged consumers are on less than stellar experiences when it comes to the airline
more willing than seniors to pay a premium sector. Over two in five consumers (43%) say that unique
for experience brand experience is important to their purchase choices
There is a ten-point gap between people under 55 and in this sector. Yet fewer than two fifths (39%) of consumers
people over 55 when it comes to willingness to pay more rate their previous airline experiences as excellent or good.
for brands that offer a unique experience (47% vs 37%). Again, refer to the significant gap between consumers’
Whether this reflects seniors’ budgetary caution or a more expectations for key drivers and how airline brands have
conservative brand-view, it’s worth noting for marketers. actually performed [ fig. 5 ].
BEST EXPERIENCE BRANDS /17

18. EXPERIENCE BRAND TRENDS (CONTINUED)
Mobile devices
There is a much smaller gap between consumers’
judgment of past experiences with mobile device brands
and the importance they place on experience. Almost
half (48%) say that unique experiences drive purchase
in this sector; a slightly smaller group (46%) rank their What makes
an experience
actual past experiences as excellent or very good. memorable?
Interestingly, although Apple tops the list of experience
brands in this sector with a 69% ranking for highly unique
brand experience, the next best-ranked brand pales in I like to
comparison, at 41%. experience new
What's
a 'wow' things
Internet retailers factor?
Most consumers ranked this sector very positively in terms
of actual past experience: over two out of three (70%) said
their past experiences had been excellent or very good.
Simultaneously, unique experience was most important
in this sector compared to the others (49% vs. 48% for
mobile devices and 43% for airlines). This is worth noting
as more transactional or exclusively web-based brands
may assume that “brand experience” is less relevant in the
online marketplace. Clearly, online brand experience maps
closely to user experience – just look at the drivers cited as
important by consumers [ fig. 5 ].
LB
BEST EXPERIENCE BRANDS /18

19. LEARN MORE
Look for more insights from the BEST EXPERIENCE BRANDS
study to be released in the future. To request insights from
the qualitative phase of the study, as well as more detailed
quantitative findings relating to product categories, contact
liz_bigham@jackmorton.com
READ OUR ARTICLES ON EXPERIENCE BRANDS:
What is an Experience Brand? read
Experience Brands and the Owned Media Opportunity read
Experience Brands and the New Engagement Model (research) read
Experience Brand Leaders 2010 read
TO JOIN THE CONVERSATION ABOUT BEST EXPERIENCE
BRANDS, PLEASE CONNECT WITH US ONLINE:
Follow us on twitter: @jackmorton
Visit us online: jackmorton.com
Read our blog: blog.jackmorton.com
BEST EXPERIENCE BRANDS /19

20. JACK MORTON WORLDWIDE IS A GLOBAL BRAND EXPERIENCE
AGENCY WITH OFFICES ON FOUR CONTINENTS. OUR AGENCY
CULTURE PROMOTES BREAKTHROUGH IDEAS ABOUT HOW
EXPERIENCES CONNECT BRANDS AND PEOPLE – IN PERSON,
ONLINE, AT RETAIL AND THROUGH THE POWER OF DIGITAL
AND WORD OF MOUTH INFLUENCE. WE WORK WITH BOTH
BTOC AND BTOB CLIENTS TO CREATE POWERFUL AND EFFECTIVE
EXPERIENCES THAT ENGAGE CUSTOMERS AND CONSUMERS,
LAUNCH PRODUCTS, ALIGN EMPLOYEES AND BUILD STRONG
EXPERIENCE BRANDS. RANKED AT THE TOP OF OUR FIELD,
WE’VE EARNED OVER 40 AWARDS FOR CREATIVITY, EXECUTION
AND EFFECTIVENESS SO FAR THIS YEAR, INCLUDING BEST NEW
PRODUCT INTRO, BEST MEDIA EVENT AND EMPLOYEE CAMPAIGN
OF THE YEAR. JACK MORTON IS PART OF THE INTERPUBLIC
GROUP OF COMPANIES, INC. (NYSE: IPG).
© Jack Morton Worldwide 2011
BEST EXPERIENCE BRANDS /20