Latest / The CMO Podcast with Fexingo: Marketing Leadership, Budgets, and Executive Strategy / How CMOs Use Brand Worlds to Build Loyalty
Transcript
- Lucas: So Luna, we talk a lot about campaigns, about creative, about paid media. But every so often a CMO does something that's less a campaign and more a world. And I think that's worth drilling into today. Luna: A world? You mean like a branded universe? Give me an example. Lucas: Exactly that. Think of a heritage automotive brand that built a virtual museum. Not a website, not a showroom. A fully navigable digital space where owners can park their actual car, walk around it, learn its history, even race it on a virtual track. And here's the thing — people visit daily. It's become a destination, not a brochure. Luna: That's fascinating. So it's not just about selling cars anymore, it's about giving owners a place to belong. Lucas: Right. And that's the core of a brand world. It's a persistent, immersive environment that exists beyond the transaction. And the CMOs behind these are seeing retention numbers that blow traditional loyalty programs out of the water. Luna: Okay, so what's the actual ROI story? Because I can hear the CFO asking, 'Why are we spending millions on a virtual museum?' Lucas: Good question. The brand I'm thinking of started with a pilot. They gave a subset of owners access to the virtual museum six months before a global launch. Those owners renewed their subscriptions at a rate of 82 percent, compared to 68 percent for the control group. That's a fourteen-point lift in retention, just from early access to a digital space. Luna: Wow. Fourteen points. That's not a rounding error. Did they track anything else? Lucas: They did. They also measured time spent in the museum — an average of 47 minutes per session. And they found that owners who engaged with the virtual museum were 3.2 times more likely to book a service appointment within the next 90 days. So it's driving not just retention, but actual revenue through the service channel. Luna: So it's not just a feel-good exercise. It's a customer lifetime value play. I love that. Lucas: And that's the key for CMOs. You don't build a brand world for the sake of innovation. You build it to deepen the relationship, and you measure it with the same rigor as any campaign. But here's the thing — a lot of CMOs are still stuck in campaign mode. They think in terms of flights and bursts, not persistent environments. Luna: Yeah, that's a mindset shift. So what does it take to actually pull this off? I mean, a virtual museum sounds like a big investment. Lucas: It is. But there are levels. You don't have to build a AAA video game. Some brands start with a simple, interactive web experience that has layers. Think of it as a brand world lite. The key is persistence — it's always there, it evolves, and it rewards repeat visits. Luna: Right. So it's more about the principle than the scale. What's the psychological hook? Why do these worlds work so well for loyalty? Lucas: Psychologically, it taps into ownership and identity. When you can customize your car in the virtual space, or unlock badges for driving milestones, you're not just a customer anymore. You're a participant in the brand's story. That sense of agency is incredibly powerful. Luna: Agency. That's the word. It's the difference between a brand that says 'we made this for you' and one that says 'come build it with us.' Lucas: Exactly. And that's why these worlds often outperform traditional loyalty programs, which are often just points and discounts. Points feel transactional. A world feels personal. Luna: So how do CMOs measure success beyond retention? Is there a risk of vanity metrics? Lucas: Huge risk. You can get seduced by time on site or number of visits. But the real metrics are tied to behavior change. Things like service bookings, cross-sell rates, referral rates. If your brand world doesn't move those, it's just a pretty toy. Luna: And that's the CFO conversation. You're not just building a museum, you're building a revenue engine. Lucas: Right. And there's also the community aspect. These worlds become gathering places. Owners organize virtual meetups, share screenshots, even create their own content. That's organic marketing you can't buy. Luna: It's like the LEGO community we talked about, but on a more immersive level. It's not just a forum, it's a place you live in. Lucas: Exactly. And that's why I think brand worlds are the next evolution of community-led growth. But let me bring in a quick honest thing here. We get to explore all these ideas because listeners like you chip in monthly through buy me a coffee dot com slash fexingo. That's what keeps this show ad-free and lets us go deep on unconventional topics like this. Luna: Yeah, it really does make a difference. We're grateful for every supporter who helps us keep the conversation independent. Lucas: So back to brand worlds. One thing I've seen trip up CMOs is going too big too fast. They try to build a full virtual universe on the first swing, and it ends up feeling empty. The best approach is to start small, test with a core group, and iterate. Luna: Like a lean startup. What would a small step look like? Lucas: Maybe it's a digital showroom where customers can configure their product in 3D. Or a members-only portal with exclusive content and events. The key is to make it a place people want to come back to, not just a one-time gimmick. Luna: So it's about consistency and value. If you're going to build a world, it has to be a living thing. Lucas: That's the word. Living. The brands that do this well treat their world as a product, not a campaign. They have a dedicated team, a roadmap, and they're constantly adding new features and content. It's a long-term investment. Luna: And that requires a different kind of CMO leadership. It's not just about approving a creative brief. It's about championing a whole new capability. Lucas: Absolutely. And that's why I think the CMOs who embrace this early will have a real advantage. Because once a customer is deeply embedded in your world, it's hard for a competitor to pull them out. Luna: That's the moat. It's not about the product anymore, it's about the ecosystem. Lucas: And that's the big takeaway. Brand worlds are the ultimate retention play because they're built on identity and belonging. The question for every CMO is: are you ready to build one, or are you going to let your competitors create the world your customers live in? Luna: That's a strong note to end on. I'm curious to see which brands get this right in the next year. Lucas: Me too. And if you're a CMO thinking about this, I'd love to hear how you're approaching it. Until next time.