IF YOU’VE GOT A GIG IN LOYALTY MARKETING, YOU MAY WANT TO SING ALONG WITH SOME OF MUSIC’S RISING STARS.
Back in March, I proposed that loyalty programs might better be thought of as “Brand Fan” programs – designed to engage your best customers to groupie level obsession with you. While points programs may still have a place with some brands to drive frequency, Brand Fan programs make me think more about a customer who sees and treats your brand like an “11” on their attention dial.
Taking a lesson from myself, I thought to look at just what’s driving fan-dom in the quintessential category of fans – the music business.
While to some it might seem a bit of an unlikely source to get insight into better marketing loyalty programs, what I found could well have you wondering if your daydreams of raving groupies of your own may be closer to reality than you might think.
The fall of yesterday’s empire
The music industry has long thrived on a well-established supply chain – from label to distributor to cash registers ringing under the din of the latest hit booming at your favorite record store. Enduring the shifts from vinyl to 8-track to cassette to CDs, this monolithic machine set the trends and secured the fate of many a star – and created an outpouring of fans (and their cash) for many years.
Then came the MP3 – music’s digital change agent.
Now stocking your music library no longer means canvassing a record store or sifting through bin after bin in hopes of finding that limited release. Now the album – or song – you just fell in love with is only a short click away, downloaded and in your playlist in moments.
According to Strategy Analytics, MP3 downloads are set to overtake CD sales by 2012. In what seems like an instant, the entire value system has been changed. Yesterday’s system for creating stars and locking in loyalists is undergoing a revolution – some might even argue crumbling entirely.
The rise of today’s fan
The shift to a digital music exchange has stripped and shifted the value and values of the music industry and music fanning in profound ways.
For one, there’s no “show” for a purchase besides new album art in your library and a digital receipt. While extremely green, this leaves a true fan a bit wanting. The ritual of band worship is much easier with an album to fondle, a sticker to put on your laptop lid or some other symbol on which to fix your dedication and garner respect from your friends. The gratification of finding and belonging to a band brand has been displaced.
At the same time, access to the market has exploded for new and innovative talent. Record labels no longer monopolize the world of music. There’s a new bounty of artists writing, recording and selling direct from their own web sites – sometimes even through virtual “live” concerts (yes, even nightclubs have lost a bit of their grip over who you’ll hear this Saturday night).
With all this displaced value and great new talent entering the music world, it’s not surprising to find creative innovation. And it’s not just in the music itself – it’s in the way fans are courted, encouraged and engaged. New musicians keen to the needs of their followers are offering special rewards, recognition and participation. Along with selling MP3s on their sites, they’re including other avenues for fanning:
• Artifacts – Many artists have online stores with limited edition artwork, shirts, books and the classic stickers – ways for fans to support more and collect the badges they want. For an example, check out Matthew Dear’s Black City:
http://www.matthewdear.com/blackcity/
• Subscriptions – Creating followers can simply mean making something to follow. Savvy musicians are offering just that – a way to follow their work as it evolves. This can be as simple as a subscription. A straight forward example is the Noir Club:
http://jimnoir.com/jimsplash/page.html
• Experiences – Musicians of today are making themselves more accessible than in the past. They are working with their fans, taking input, answering email – creating a valuable relationship. Some offer lessons, jam sessions or virtual access to the recording studio. To see more, check out artists listing at jamewave:
http://www.jamwave.com/
• Crowdsourcing – Many large corporations have discovered this tool for garnering engagement. Not surprisingly, the world of independent musicians in on board too. This time, they’re using forums and group interest to help fund their futures. Check out Kickstarter to see a very direct way artists are using this idea:
http://www.kickstarter.com/
Kickstarter has risen over $50 million for independent artists in its first 2 years – mostly through simple referral and influence. It seems there’s a lot of fan passion to be tapped out there.
Get your own groupies.
Artists and musicians – new and old – are reinventing the passion of being a fan in the digital age. They’ve discovered rich new territory to add value to the basic product – in this case, digital recordings downloaded directly.
Many retail and service companies are facing a similar challenge. Economic pressure and the sheer volume and commoditization of products and services has deflated the raw value of most brands.
For companies struggling to invigorate their brands and earn loyal fans, I think there’s no harm in being influenced by your favorite rock star. Could any of the four techniques above work for you? What of your culture can translate to icons. Zappos makes following fun – can you create a subscription or regular flow of videos. What about allowing your best customers access to key decisions? Fans need a story to tell and a badge to wear – arguably more than earning points they may never redeem. What can you offer them?
It may not be time to pull that old guitar out of the attic, but with a little riffing on new ideas and a few test gigs, groupies just may be in your future.
