70% of Business Comes From WOM
WOM is “Word of Mouth.” This statistic isn’t specific to the music industry. What I’m about to write is an idea and I’m curious to hear your feedback and thoughts on it.
If 70% of business comes from WOM, then only 30% comes from other areas of marketing. Look at your marketing budget. Actually, I know that you don’t have a marketing budget because this is the music business. Look at how much you spent on marketing last year or try to quantify how much energy you put into marketing. What percentage of that time, energy and money went into servicing your existing fan base and empowering them? These are the people who generate your WOM marketing… and therefore 70% of your new customers.
Now look at how much went into trying to find new fans in other ways. I don’t know your specific artist, but I’m going to guess if you’re like me, you put a lot of energy into “getting new fans” through internet marketing, posters, radio and publicity.
I think we may have it all wrong though. I think we need to take a lesson from Zappos, Crocs and Google and put all of the marketing energy into the current customer base. Blow them away with service and experience. Your current fan base is where the momentum is already. Give them a reason for to talk to their friends about your band. Focus on the fact that 70% of your new fans are going to come from the existing fan base. How does that change things? What does this look like and mean for an artist business?
Though this isn’t really related to this blog entry, could you write an entry about your opinion of the current length of a copyrighted work (life of the creator + 70 years) before it belongs to the public? After talking about it in my Music Industry class, I am intrigued by people’s varying opinions on the matter.
Thanks,
Audrey
Audrey~ What are your thoughts or specific questions on this topic? Do you think it’s too extreme? If so, what might be more fair?
I think you are right on the money re. WOM and where we place our assets. I am a photographer & video producer which share similarities to the music industry. I use direct mail postcards and html email to “keep the pot stirred” within our existing customer and contact base. I’d like to hear what other creative’s do to accomplish the same.
Bob Sloan
Bob~ I’ve got a book on “tour marketing” which could be very applicable to your grassroots marketing, especially if you are doing art events. I’m sending it to you by email. Enjoy and let me know your thoughts!
Ben,
Sorry it has taken me so long to respond. I feel like life (not to mention an additional 70 years) seems a bit extreme. I do believe that people should be rewarded for their creativity, but I also think that another person’s creativity shouldn’t be stunted in the same process. By that I mean that people should be able to respond to another person’s art/song/etc. with their interpretation. I know they could obtain licenses, but what if the original artist doesn’t like or agree with the new interpretation, should the public then not have access until 70 years after the original artist’s death? By that time, I believe that the vivacity of the new work would be lost. I know that was a lot of rambling, but what are your thoughts?
Hi Audrey~ You can interpret another artist’s song as long as they have already released it to the public. If they don’t like your version and you want to have it on your CD, they may not give you their permission but by law you can get a Compulsory Mechanical License through the government and pay the full statuatory mechanical rate.