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A COLLECTION OF E-LETTERS BY MARKETING EXPERT BARRY SILVERSTEIN PUBLISHED EXCLUSIVELY BY BLUEGRASS TODAY® SOUND MARKETING FOR BLUEGRASS 2016 By Barry Silverstein SOUND MARKETING FOR BLUEGRASS #40 Where is your marketing headed this year? Check out these recent statistics and see what they mean to you in 2014. Fact: In 2013, U.S. adults age 18 and older spent 2 hours 19 minutes each day online on desktop and laptop computers. Almost 29 percent of that time was spent using social media, and 18 percent watching online video. Adults spent 1 hour 7 minutes daily on their smartphones and 1 hour 3 minutes on their tablets. (eMarketer) What this means to you: Today’s consumer wants to be digitally connected, even on the go. Wherever a consumer goes, he or she expects to be able to conduct business, reach friends, take advantage of online apps, and search the Internet. As a bluegrass marketer, you’ll need to continue to find ways to make all of your marketing “online friendly” and be sure that you are taking advantage of online marketing opportunities. Fact: In 2013, 72 percent of adults on the Internet use social networking sites. Those ages 65 and older have roughly tripled their presence on social networking sites from 2009 to 2013, from 13 percent to 43 percent. (Pew Internet & American Life Project) What this means to you: Some marketers are under the impression that social media is just for the younger crowd – but statistics tell a different story. Older Americans are definitely connecting via social media. Bluegrass has a broad demographic appeal, so as a bluegrass marketer, you need to consider how to make the best use of social media and think about developing a social media strategy that integrates with your marketing efforts. Fact: In 2013, social network ad spending in North America was 9.8 percent of total digital ad spending, up from 8.5 percent in 2012. This percentage is expected to grow to 11.1 percent in 2014 and 12.2 percent in 2015. (eMarketer) What this means to you: Large and small advertisers are increasing the money they spend on social media. This means that, over time, social media will become more “commercial” in nature. While social media will remain largely a peer-to-peer medium, the very nature of social media could change as marketers make more use of social media for promotional purposes. Consumers will expect to be able to interact with companies and get offers via social media – and they will expect companies to respond to their inquiries and comments in a timely manner. Be sure your social media presence is well managed. Fact: In 2013, the percentage of American adult Internet users who uploaded or posted videos was 31 percent – double what it was in 2009. The share of online adults who watch or download videos has grown to 78 percent today. (Pew Internet & American Life Project) 2 What this means to you: Online video is pervasive. Now, as a matter of course, consumers expect to see video content on websites. Being a bluegrass marketer is a natural for video. Videos can be produced easily and quickly – they don’t have to be sophisticated, just interesting! Whether you are marketing a band, a festival, instruction on instruments, or bluegrass-related products, consider using video as a marketing tool. 3 #41 Continuing with my theme from last time, here are some more recent statistics and what they mean to you. Fact: About 63 percent of tablet owners have bought something using their tablets, while only 39 percent of smartphone users have made a purchase using their smartphones. Nearly 75 percent of purchases using tablets are made at home. (eMarketer) What this means to you: Online shopping continues to gain in popularity, and tablets are becoming the preferred mobile device for online shopping. Do you sell products or tickets online? Then you should consider creating an optimized mobile version of your website. As a bluegrass marketer, you need to be sure placing an online order with you is easy via mobile devices. Fact: About 88 percent of shoppers prefer to research products online or via mobile devices before making a purchase in a traditional store. (Adotas) What this means to you: The Internet has now become the consumer’s greatest research tool, making it easy to comparison shop and seek out the lowest prices. If you operate any kind of traditional storefront, recognize that your customers are likely checking merchandise and prices online before walking in the door. Chances are they are comparing you with your competitors, too. Do your own Internet research as if you are one of your potential customers. Be sure you have the best merchandise at the best price available in your store. Fact: Worldwide mobile gaming revenue for tablets will grow over 376 percent between 2012 and 2016, and over 98 percent for smartphones for the same period. In 2013, mobile gaming tablet revenue was estimated at $3.7 billon vs. $8.5 billion for mobile gaming smartphone revenue. By 2016, mobile gaming tablet revenue will reach $10 billion and mobile gaming smartphone revenue will reach $13.9 billion. (eMarketer) What this means to you: People like playing games. Now, increasingly sophisticated mobile devices make it possible to play video games on the go. Smart marketers are looking for online games that may allow them to advertise within the games themselves. Some marketers even create their own games to appeal to particular consumers. Is there a marketing opportunity here for you? Are there creative ways that you, as a bluegrass marketer, might be able to leverage this growing interest in online games? Fact: About 57 percent of visitors are likely to drop off if a webpage takes 3 seconds or longer to load. The optimum webpage load time, according to Google, is one second. (Adotas) 4 What this means to you: Patience may be a virtue, but today, very few consumers have patience when they go online. They expect webpages to be instantly available. Streamline your website and focus on the basics. Be sure graphics, photos and videos are optimized to load quickly. Use a website designer and an Internet provider who balance quality against speed. Visitors need to be able to navigate your site easily and quickly. 5 #42 I’ve paid a good deal of attention to online marketing in Sound Marketing for Bluegrass because it is so essential to most every marketer. While the importance of the digital world cannot be underestimated, I thought it would be interesting to take a look at two other electronic media that bluegrass marketers might be able to take advantage of as well: Radio and Television. Market research firm Edison Research and Arbitron, the leading rating service, have been conducting a national survey of media usage for the past 21 years. The most recent survey shows the top two electronic media are television (256 million users) and radio (243 million users), followed by the Internet in third place (232 million users). Notice that the difference is not that great, indicating that Americans generally distribute their time pretty equally across all three media. First let’s consider radio. Survey respondents report that they spend about two hours per day listening to the radio. AM/FM radio is still the “king of the road,” with an 84 percent share of in-car media, followed by CD players (63 percent), iPod/MP3 player (29 percent), satellite radio (15 percent), online radio (12 percent) and HD radio (3 percent). Of those who use incar media, 58 percent of people say they use AM/FM radio almost all of the time or most of the time. Online radio is growing rapidly, though: The weekly online radio audience is 1 in 3 listeners, some 86 million weekly listeners. AM/FM radio is also the top source for those seeking to learn about new music; 78 percent of respondents use AM/FM radio to learn about and keep updated on music, while friends and family as a source for learning about new music ranks second at 73 percent. The median age of heavy radio users is 42, with the highest percentage of heavy radio usage among the 45 – 54 age group, followed closely by the 25 – 34 age group. This may be the most fascinating radio listening statistic of all: 49 percent of people listened to AM/FM radio just before arriving at a store to shop. In addition, after hearing an ad on AM/FM radio, 43 percent of respondents say they visited an advertised restaurant, 41 percent say they visited an advertised store, and 40 percent say they attended an advertised event or performance. The good news for bluegrass marketers is that radio can be a cost-effective advertising medium, especially if it is purchased on a local basis. This means, for example, if you are using online marketing to promote a bluegrass festival, radio advertising in the local area surrounding that festival would be a good way to supplement your media program. Prompting radio listeners to call for tickets, or visit your website or Facebook page for more information, can punch up your online marketing. Similarly, if you are a merchant, you might consider trying an ad on a local radio station in combination with online media to expand your audience reach. Next time, we’ll take a look at television. 6 #43 Last time, I wrote about the marketing potential of radio. This time, we’ll cover television. As I mentioned previously, a recent national survey of media usage shows the top two electronic media are television (256 million users) and radio (243 million users), followed by the Internet in third place (232 million users). Note that Internet usage is rapidly catching up to the other two media, which have been around a lot longer! The audience numbers are fairly evenly spread among television, radio, and the Internet, but as indicated, television still leads the pack. Interestingly, television attracts the oldest audience: The median age of heavy television users is 50, while the median age of heavy radio users is 42 and heavy Internet users is 33. The highest percentage of heavy television usage is among the 65-plus age group (24 percent). The next two highest heavy television usage groups are ages 45 – 54 (18 percent) and ages 55 – 64 (17 percent). Heavy television users spend more than 8 hours daily watching television. This compares to heavy radio users, who spend about 6-1/2 hours listening to the radio, and heavy Internet users, who spend about 7-1/4 hours using the Internet. Probably the most significant growth in television usage has been in the digital area. In 2013, 45 percent of television users had a digital video recorder, almost double the number five years ago. Streaming or downloading shows to be watched on television has also grown rapidly, with 28 percent of television users in the 12 – 34 age group saying they streamed or downloaded content to television in the last month. That statistic indicates why services like Netflix are experiencing such explosive growth. In addition, Internet-enabled TVs, and devices that connect TVs to the Internet, are increasing in popularity. So what does this mean to bluegrass marketers? Well, for one thing, television has enormous reach, especially with older segments of the population. These audience segments might be receptive to bluegrass advertising. Of course, national television is prohibitively expensive, but local television stations and cable networks that offer local advertising may be more affordable, especially outside of prime time. Take a look at local TV advertising and determine if it is worth testing. One less expensive way to try television could be to sponsor a segment on a local public television station. Given the massive number of Internet users, it is not uncommon for television watchers to have their smartphones or tablets available while they’re watching TV. They use these devices to look up things on the Internet –even information about a product or event they see advertised on television. That’s why it’s important to cover all of your bases and make sure you integrate various media into the marketing mix. 7 #44 Right about now activity is beginning for bluegrass festivals and new album releases. So it seems like a good time to talk about the kinds of things you can do to get the biggest bang for your marketing buck. Let’s start with festivals. Festivals fall into the category of event marketing, an important distinction from product marketing. As with any event, promoting a bluegrass festival must take into consideration two primary constraints: the event dates and the location. These factors also become the anchors for all of your promotional efforts. Since you know exactly when the festival will occur, you can develop a very precise marketing communications schedule. Similarly, the festival’s location helps you drive the geographical targeting of your promotion. Typically, active festival promotion should begin about 6 to 8 weeks in advance of the date. Set up your ticket ordering process and be sure you are ready to take orders via all channels: online, by phone, by mail, and via agents or other physical locations. Be sure to list your festival in the Bluegrass Today Events Directory. Ideally, past experience will tell you what the geographic radius is for your festival. Depending on the drawing power of the talent that’s appearing and the location itself, your target audience could be within a 250, 300, or even 400 mile radius. Once you decide on a radius, you can build a promotional plan, which should include the following: 1. Announcement/press release about the festival, highlighting the talent and the venue, sent to all newspapers, television stations, and radio stations in your geographic radius. Also contact influential bloggers in the area. Make a special effort to get radio stations to publicize the festival to their listeners. Offer free admission to all media contacts. 2. Direct mail/email to past festival attendees. If possible, offer a discount to past attendees. Also ask them to pass along information about the festival to friends and family via email and through social media. 3. Geo-targeted ads on Bluegrass Today, the leading online medium for bluegrass fans. With geo-targeting by radius, you can actually set a radius for your online advertising and dramatically increase your reach and efficiency. 4. Physical presence within 200 miles of the festival via posters and flyers. 5. Online promotion via your website, Facebook page, Twitter, YouTube, Instagram, and any other social media for which you have built a following. 6. Partner promotion: Be sure to get your festival sponsors and your talent involved in promoting the festival. Encourage them to use their own mailing lists, websites, and social media to get the word out. Sponsors and talent have a vested interest in making the festival a success, so ask them for help. 8 As the festival date gets closer, you should intensify your promotional schedule until it reaches its height about 2 weeks before the festival. Within 2 weeks of the festival date, if budget permits, buy radio time on stations within your radius that play bluegrass music. This would also be a good time to attempt to secure media coverage of the talent coming to town, especially if you can arrange for interviews with well-known personalities. Next time, we’ll take a look at promoting new music releases. 9 #45 Last time, I wrote about ways to promote bluegrass festivals. Now let’s discuss how to promote new music releases. Unlike promoting a festival, which is driven by date and location, a new music release is more like promoting a new product. Of course, the release date itself can be an opportunity for a release party and enhanced publicity. A new music release represents a significant investment, one that is obviously funded by music sales. Since most bluegrass artists and recording labels are not flush with marketing cash, you’ll have to use your marketing budget in a highly efficient way. There are two basic choices when it comes to promoting music: free and paid. To promote a new music release for free, you need to use media channels – newspapers, radio stations, television stations, and online sources such as websites and bloggers. You’ll need to identify media contacts who are likely to cover the music release and then pitch them on a story line that appeals to their audience. For example, you might contact the media in your hometown and try to get them to run a story about you as a local personality. Another kind of free promotion occurs when you use online channels, particularly social media. If you’ve built any kind of email list of fans, they should be the first to receive notice of your new release. The email should contain a link to a webpage where fans can purchase a CD or download. Fans should be able to sample some of the music on your website. If you don’t have a good website, consider building one with a service like Bandzoogle. Use Facebook, Twitter, and other social media to get the word out, and encourage your followers to tell friends and family. Use YouTube as a platform to share a promotional music video and Instagram to share photos. Be sure to get a free Artist listing in the Bluegrass Today Business Directory. On the paid side, consider highly targeted media. For example, an online ad on Bluegrass Today makes sense because it has excellent reach among a large audience of bluegrass lovers. Buying commercial time on radio stations that play bluegrass would also be efficient. One effective way to buy radio spots nationally is to use a network, such as the Bluegrass Radio Network, which reaches over 150 commercial radio stations each week. These are the basic elements of a new music release promotion: 1. Announcement/press release sent to appropriate newspapers, television stations, and radio stations that cover bluegrass music. Also contact influential bloggers. Make a special effort to get radio stations to publicize the music release and offer to do phone or live interviews or even an in-studio performance if possible. 2. Email to fans and include a link to purchase a CD or download. 3. An online ad on Bluegrass Today. 10 4. Online promotion via your website, Facebook page, Twitter, YouTube, Instagram, and any other social media for which you have built a following. Be sure to ask followers to help spread the word to family and friends. 5. Radio advertising on bluegrass stations. As part of any new release promotion, include mention of prior releases that made the bluegrass charts, as well as upcoming live appearances. For a handy schedule of exactly what promotional steps to take when, read Chris Robley’s “Album Release Countdown.” 11 #46 This month, I want to share some new statistics about the use of email as a marketing medium. There seems to be a lot of discussion about social media lately, so much so that we tend to forget that email is one of the most resilient forms of digital communications. Leading consulting firm McKinsey & Company reported some stunning statistics about email earlier this year: • Email is nearly 40 times more effective than Facebook and Twitter combined in acquiring customers • The rate at which email prompts purchases is at least three times higher than social media • The average order value from email vs. social media is 17 percent higher. Notice that this data addresses a metric every bluegrass marketer, and every marketer for that matter, should care about: customer acquisition. While social media undoubtedly helps marketers engage customers and prospects, the statistics indicated above demonstrate that email really helps make the sale. Of course, this does not mean email is effective all the time. For example, if email is directed to the wrong audience, makes an inappropriate offer, or doesn’t follow the rules of good creative communications, then email is just as likely to fail. A recent article from Entrepreneur.com laid out these helpful basics: • • • • • Email subject lines with 6 to 10 words perform the best in terms of generating the highest open rate. More emails than ever (35 percent) are opened and read on mobile devices. That’s why it’s important to keep them concise and easy to read. Personalized emails tend to out-perform non-personalized emails. Emails that reference song lyrics or movie names in the subject line are opened more often than emails with more traditional subject lines. “Flash sale” emails seem to depress response, probably because they are over-used. As you’re planning your marketing campaigns, make email part of the mix, and be sure to ask yourself these basic questions: 1. Is my email list well targeted, accurate and up to date? 2. Do I have something of value to offer, or something important to say, that will make the recipient want to open the email? 3. Am I using a short, compelling email subject line? (Think of it as an ad headline.) 4. Does every email have a strong call to action and include an easy way to respond? 12 #47 Last time, I mentioned some statistics that support the use of email as a primary marketing tool and talked about techniques to improve your email. Now I’d like to share some additional thoughts about the use of email for marketing. I previously cited a study by McKinsey & Company which indicated that email is far more effective than social media in acquiring customers. McKinsey also had some specific advice for improving the use of email: 1. “Focus on the journey, not the click.” McKinsey points out that the email itself should not be sent in isolation – it should be part of a “consumer’s decision journey.” According to McKinsey, email marketers should consider including a link in an email to a customized landing page, which reinforces the specific message of the email, because such landing pages increase conversion rates by more than 25 percent. It is also important to optimize landing pages for mobile devices. 2. “Share the lessons.” McKinsey observes that the best marketing organizations are always learning from their customers and the results of their programs. Email campaigns that succeed or fail need to be studied and the lessons shared with others within the company in an effort to improve marketing. 3. “Get personal.” Given the number of emails individuals receive, McKinsey believes that “relevancy should be a priority for every marketer.” Emails should be varied by a customer’s interest, for example. Sophisticated email marketers even customize emails based on past user click-throughs, browsing history, and purchase history. Another study from eMarketer reinforced McKinsey’s advice about personalization. A remarkable 81 percent of survey respondents said they were at least somewhat likely to make additional purchases, either online or in-store, as a result of targeted, personalized emails. Finally, here’s an interesting email response-boosting technique you might be able to use. A large study by Experian Marketing Services, as reported by eMarketer, showed emails that included a coupon had a 34 percent higher unique click rate, 14 percent higher open rate, and 27 percent lift in transaction rate than emails with no coupon. Revenue per email for emails with a coupon was 48 percent higher compared with other promotional emails. While using a coupon may not always be appropriate, this concept may be worth keeping in mind for an upcoming email campaign. 13 #48 As a bluegrass marketer, you need to be aware of exactly how your customers and prospects are consuming information. These days, more of them are showing a preference for digital information – no surprise there. What may be somewhat surprising, though, is the rapid growth of what researchers call the “multiscreen” environment. In its latest “AdReaction Report,” market research firm Millward Brown shares the results of a global study of multiscreen users. (A multiscreen user is defined as a person who owns or has access to a TV and a smartphone and/or a tablet.) The study found that the typical multiscreen user consumes 7 hours of screen media during a 5 hour period (which obviously means more than one screen is being used at least some of the time). In most countries, reports the study, the smartphone is the most popular screen, taking up 2.5 hours of time daily. Smartphones and laptops dominate daytime screen use, while TV and tablet usage leads in the evening. Only 35 percent of screen time is simultaneous use of TV and a digital device, according to the study. Simultaneous screen use includes “meshing” (simultaneous use for related content) and “stacking” (simultaneous use for unrelated content). Stacking is more popular than meshing. Millward Brown therefore believes “the biggest multiscreen marketing opportunity is shifting,” or getting the user to move from one screen to another. This is likely to be the reason you notice large advertisers appending mentions of websites, Facebook pages, and Twitter accounts to their TV ads. In fact, the study suggests that TV is generally more of a starting point and digital devices are generally used more to continue and complete tasks. Perhaps most important, the study shows that mobile devices (smartphones, laptops, and tablets) account for 47 percent of all screen time. That’s why Millward Brown concludes that most marketers need to “deploy media plans with a far heavier mobile emphasis than they do at present.” According to Millward Brown, the main principles for success across multiscreens are: 1. Be Consistent – Your brand experience and messaging should be uniform across all screens. 2. Be Connected – Think about “second-screen” experiences and how your marketing can engage customers between screens. 3. Be Considered – Some screens may be better than others at communicating particular aspects of your brand’s personality. 4. Be Concise – Use mobile-friendly content that can be shared. Content should entertain first and inform second. 14 Here’s an interesting comment from one of the industry experts Millward Brown interviewed for the study: “Multiscreening is simply how people are living their lives. Integrated marketing campaigns across MobileInternet-TV will make a real difference in terms of how they touch people, generating a deeper impact and creating word-of-mouth effects.” 15 #49 If you get the feeling that marketing is changing around you and you need to do things differently to keep up, you are not alone. A recent study of over 1,000 U.S. marketers, sponsored by Adobe Systems, suggests that most marketers know they need to reinvent themselves, but they don’t know how. Of the marketers surveyed, 64 percent expect their role to change in the next year, and 81 percent see changes coming in the next three years. The top three driving forces behind the changes are: 1. Expanded number of channels and platforms to reach audiences 2. New ways of thinking about audience engagement 3. New technologies for analyzing marketing effectiveness. While 40 percent of the marketers said they wanted to reinvent themselves, only 14 percent claimed they actually knew how to go about it. The majority of marketers (54 percent) believe the ideal marketer will be required to take more risks. Over half (65 percent) agree that “the line between digital and traditional marketing is not as clear-cut anymore.” Something else marketers are thinking about: The importance of data. More than three quarters (76 percent) of marketers surveyed said they need to be more data-focused to succeed. The majority (72 percent) recognizes that their long-term success is tied to proving marketing return on investment. Still, almost half of marketers (49 percent) said they make decisions on where to spend their marketing money by “trusting their gut.” It probably comes as no surprise that, in general, companies are doing significantly more digital marketing than last year. Eighty-three percent of marketers are doing somewhat more or much more with social communities, and 65 percent of marketers are doing somewhat more or much more direct customer engagement through email. Well over half of marketers (61 percent) see social media as “the most critical marketing vehicle to focus on a year from now.” Mobile marketing ranks second (51 percent). When asked to prioritize just one capability that will be most important in the future, marketers ranked personalization as the highest. Hopefully, learning what other marketers are thinking about will help you set a more effective course of your own. 16 #50 This month, I thought it would be interesting to take a look at how some bluegrass marketers are making the most of online marketing. Here’s what I look for when I’m reviewing and evaluating online marketers: A compelling concept To garner the attention of prospects, a bluegrass online marketer needs to execute a compelling promotional concept – something creative, attractive, and engaging. A strong brand identity A strong brand identity transmits a distinct image and differentiates one brand from another, whether it’s a store, a festival, or an artist. A brand can be distinguished by name, logo, type, graphics, color, and even writing style. Online marketing proficiency A marketer’s online presence should be all-encompassing and integrated. A website should be the hub of online marketing, with other online media built around it. Proficient online marketers have an effective website that links to other appropriate media, including Facebook, Twitter, and YouTube. All of these media reinforce one another and work seamlessly to keep customers and prospects informed and interested. Two Examples Native Ground, a Southern Appalachian book and music retailer targeting bluegrass enthusiasts, does a very effective job of online marketing. Native Ground runs an attractive ad on Bluegrass Today that links to its website. The company’s website employs a compelling concept. It immediately conveys the old-time environment of an inviting country store, using wood grain, retro type, and warm, friendly colors. The story about its beginnings and the folks who are part of Native Ground adds a very personal and authentic touch to the website. At the very top of the site’s home page are calls to action to either download or request a free catalog. Native Ground carries this same vintage feel to its Facebook page, its Pinterest page, and its Twitter account. Native Ground also uses YouTube to demonstrate owner Wayne Erbsen’s banjo-playing. All of these link to the company’s website; icons for each one of the media are prominently displayed on the home page. This is a small company that is using a consistent brand image and voice across several online media. As a result, Native Ground has a strong and positive online presence. Bluegrass artists can use online marketing to generate awareness for new releases and build a fan base. Ashley Lewis, for example, recently ran a banner ad campaign on Bluegrass Today that helped generate buzz for “Captivated,” her new CD. The banner ads used stunning photography of the artist and linked to her website. 17 Ashley makes good use of her Facebook page, which is linked to her website, for announcements and news, and to keep in touch with her fans. YouTube, of course, has become a very effective medium for artists to post music videos. Ashley takes advantage of YouTube by using it to embed music videos on her website. She also sells her albums and other merchandise directly on her website. Ashley’s banner ad campaign, along with her online presence using other media, resulted in significant enough airplay for her first single debut, “Rivers Rising” from her “Captivated” album, to hit #1 on The Bluegrass Today National Airplay Survey Chart. Next time we’ll look at several examples of bluegrass online marketing programs. 18 #51 This month, I’m taking a look at bluegrass marketers who using online marketing effectively. Last time, I shared two examples – a retailer, Native Ground, and an artist, Ashley Lewis. Here are three more: Product Marketing A classic way to market products is via endorsements. GHS Strings uses endorsements very effectively in a banner ad campaign running on Bluegrass Today. The company rotates banners featuring artists who endorse its products. A click on the ad brings the prospect directly to a page on the company’s website relating to that specific artist. The page featuring Balsam Range, for example, has photos of the band, a playlist, and links to the band’s website and Facebook page. The GHS Strings website homepage is clean and easy to navigate. Rather than blatantly market products, the company continues to feature artists and artist news to reinforce its endorsement strategy and engage visitors. GHS Strings makes excellent use of its Facebook page to communicate product news, share videos, and discuss artists. GHS Strings is also active on Twitter and Instagram. The company makes heavy use of YouTube to feature artists, interviews, demonstrations, and product reviews. Icons for YouTube and all other online media appear at the top of the GHS Strings website. Prospects and customers can purchase products on the site or click a link to find a dealer. GHS Strings has found the right formula, both in terms of endorsements and online media, for effective marketing. Event Marketing Event and festival promoters can make excellent use of online marketing, as demonstrated by the IBMA. The IBMA is running a banner ad on Bluegrass Today promoting World of Bluegrass in Raleigh, NC from Sept. 30 – Oct. 4. The engaging ad, an illustration of a female banjo player set against a fanciful backdrop of Raleigh, leads directly to the event’s attractive, well organized web page. Further information is available and tickets can be purchased from the site. The illustration provides a strong visual anchor for the event’s brand identity. It is carried through to the IBMA’s Facebook page and Twitter. The organization also makes use of Google Plus and features its “Backyard Bluegrass Sessions” on YouTube. Online media is ideal for promoting festivals because the marketer can use video of previous festival performances and sell tickets online. This is a powerful way to both generate festival awareness and encourage immediate purchase. 19 Artists and New Releases Marketing Record companies can cost-effectively promote individual artists using online marketing. Mountain Fever Records uses banner ads on Bluegrass Today to support the label’s artists and their new releases, driving prospects who click on an ad directly to the artist’s page on the company’s website. The website’s home page highlights artists and releases, prominently displaying links to the company’s Facebook page and Twitter, as well as the CEO’s LinkedIn page. On Facebook, Mountain Fever promotes artists and festivals and offers free CDs via contests. In one recent contest, the company made a novel offer: “Share This Post to Enter. We won’t reveal the secret number but every time the share count goes up by that amount the person will get a free autographed copy!” Mountain Fever conveys the feel of a small company that cares about both artists and customers. On its website, the company’s story begins: “Who would be crazy enough to start a new record company these days? Someone who believes so strongly in the quality of the artists they are hearing and the music that those artists are creating, that stepping out on a limb to bring that music to the masses overrides their desire to “not be called crazy.” Everybody needs a little crazy now and then.” I hope the examples I’ve shared this month have given you some insight into how bluegrass marketers of all kinds are making effective use of online marketing. 20 #52 Time to take a fresh look at social media marketing and see where it’s headed for the rest of this year and into 2015. The Sixth Annual Social Media Marketing Industry Report was recently published by Social Media Examiner, the world’s largest online social media magazine. This report, based on input from more than 2,800 marketers, is chock full of social media insights and trends. In this and the next edition of Sound Marketing for Bluegrass, I’ll discuss some of the highlights of the report and their implications for bluegrass marketers. Let’s start with a fact that every marketer struggles with: measuring the effectiveness of social media. While 68% of marketers say they analyze their social media activities, only 37% agree that they are able to measure the Return On Investment (ROI) of their social media activities. On the positive side, 92% of marketers say social media is important for their business, but the top question on their minds is about proper tactics: 89% of marketers want to know the most effective social media tactics and the best ways to engage their audience with social media. There is little debate that social media has entered the mainstream when it comes to marketing: 83% of marketers say they integrate their social media activities with traditional marketing activities. The top two benefits of social media marketing, according to the report, are increasing exposure and increasing traffic. Most marketers (over 70%) are using social media to develop loyal fans and gain marketplace intelligence, and 66% of marketers see lead generation benefits with social media. Over 84% say increased traffic resulted from using social media. Yet payback remains elusive: 50% of all marketers report social media has not helped them improve sales. One interesting correlation in the report shows that the more time marketers spend on social media, the more effective it becomes. More than half of marketers who have used social media for at least 3 years say it has helped improve sales. For marketers who have been using social media for two years or longer, at least 65% of them spend 6 hours or more per week on social media activities. Almost half of those who spend at least 6 hours per week on social media activities say it has helped them reduce marketing expenses, and at least 60% of those marketers say they saw improvements in search engine rankings. Building loyal fans is directly related to time invested as well: Of those spending at least 6 hours a week, 78% said social media helped build a loyal fan base, compared to 56% of those spending 5 hours or fewer per week. As for the most popular social media platforms, 94% of marketers use Facebook, 83% use Twitter, 71% use LinkedIn, 57% use YouTube, 55% use blogging, 54% use Google Plus, and 47% use Pinterest. Next time, we’ll look at some interesting data about usage of specific social media platforms and a few surprising facts about social media growth trends. 21 #53 This month, we’re reviewing some interesting data about social media from the Sixth Annual Social Media Marketing Industry Report by Social Media Examiner. Last time, I shared some general trends; now we’ll drill down into how marketers use specific social media. First, let’s look at Facebook usage, the most popular social media platform, according to the report. While 94% of marketers say they use Facebook, only 43% of marketers feel their Facebook efforts are working. Even so, when asked to pick the single most important social media platform, 54% of marketers chose Facebook. However, for Business-to-Business (B2B) marketers, LinkedIn edges out Facebook as the single most important platform. Here is an interesting trend regarding Facebook: Social Media Examiner states “Our research shows the beginning of a decline in the use of Facebook among marketers.” Of all marketers, 64% say they plan to increase Facebook usage, while 7% say they plan to decrease Facebook usage. Which social media do marketers plan to use more often in the near future? Surprisingly, blogging was ranked first in planned increased usage. According to the report, “Not since 2010 has blogging topped our charts as the number-one area of increased activity for marketers. Blogging has incrementally increased from number four in 2012 to number three in 2013 and now to the top spot for increased activity.” As a bluegrass marketer, you have the opportunity to blog about products, artists, or festivals. Tied for second in planned increased usage is YouTube and Twitter. YouTube’s popularity is significant, because video is an increasingly important medium when it comes to online marketing. Again, bluegrass marketers are in a position to make excellent use of video in marketing, especially artists and festival marketers. LinkedIn is also expected to see strong increased usage, particularly with B2B marketers. Google Plus, often dismissed as a less important social media platform, showed surprising strength among marketers, with 61% saying they plan to increase Google Plus usage. In addition, Google Plus ranked as the top social media platform that marketers wanted to learn more about. The report detected a significant uptick in planned increased usage for podcasting. According to the report, “While only 6% of marketers are currently involved with podcasting, a significant 21% plan on getting involved this year – more than a threefold increase!” As for content usage, 94% of marketers use original written content in social media marketing, while 73% of them curate content from others. 60% of marketers use their own original visual assets, such as infographics and original videos. Looking into the future, 81% of marketers plan to increase their usage of original written content, and 73% plan to increase the use of original videos. Once again, you can see how important a role video plays in online marketing. 22 When marketers were asked what other forms of marketing they are using, the top three things reported were email marketing (85%), search engine optimization (65%) and event marketing, such as speaking and networking (51%). In closing, it should be noted that the largest group of marketers participating in the study (34%) were in small businesses of 2 to 10 employees. The next largest group (19%) was oneperson businesses, while 21% worked in businesses with 100 or more employees. Most participants (60%) were based in the United States. I hope you found this information about how marketers use social media to be valuable in assessing your own social media marketing efforts. 23 #54 Demographics, such as gender, age, ethnicity, home ownership, and location, have long been valued by marketers to better target their messages. This month, I’d like to talk about how to put demographic trends regarding two specific generations to good use in your marketing program. Of the current U.S. population (around 318 million), about 77 million are baby boomers (born between 1946 and 1964) and about 76 million are millennials (generally born between 1981 and 1996). Today, these two groups make up nearly half the country’s population. First let’s consider the boomers. Chances are they are a good audience for bluegrass marketers. Look at who buys bluegrass music, who takes bluegrass lessons, and who attends bluegrass festivals. A significant segment of the bluegrass audience is likely to be in their boomer years. What are some of their characteristics that would be useful for you to know for marketing purposes? Jim Gilmartin, president of a boomer and senior marketing agency called Coming of Age, makes several important observations in a recent “Engage: Boomers” blog post. He writes, for example, that boomers have a more developed intuition than younger audiences, but they may be slower in cognitive reasoning. As a result, “a website with fast-moving and frenetic visuals and brassy music can appeal to younger customers while Baby Boomers may react negatively.” Boomers also “tend to have greater appreciation for the finer definition that nuance and subtlety give a matter.” They are less likely to respond positively to strongly worded, hyped language and bold claims about products. “Say less and let the customer interpret your communications,” advises Gilmartin. In addition, he says, boomers rely on instinct. First impressions are important and often lasting, so a negative or even uncommitted first impression is a turn-off that might impede further action. Gilmartin suggests that boomers are more receptive to stories than ordinary marketing copy, since stories “generally arouse emotions.” Boomers see “the big picture” better than younger generations because they “tend to be more holistic in perceptions and thinking.” He points out that boomers are driven by certain compelling needs, including the desire to maintain their independence, to develop and maintain stronger relationships, to achieve meaningful experiences, to continually grow and share their wisdom, and to seek mental and physical rejuvenation. These insights into the boomer mind can tell you a lot about how to shape your marketing messages when you want to reach this audience. Next time, we’ll take a look at millennials. 24 #55 Last time, I wrote about some of the characteristics of the boomer generation. I talked about how you, as a bluegrass marketer, can use insights into the boomer mind to target your marketing to that audience. Now let’s discuss millennials, Americans born generally between 1981 and 1996. Research suggests that over half of bluegrass enthusiasts are between the ages of 25 and 54. That means at least the older members of this generation form a “sweet spot” for bluegrass marketers. So what are some millennial characteristics that would be useful for you to know for marketing purposes? According to CEB, an advisory company that produced a study called “Inside the Millennial Mind,” millennials “are focused on amassing life experiences rather than tangible objects, forgoing large financial commitments in order to pay down debt and increase their savings.” Millennials, says the CEB report, are just as likely to live under their parents’ roof if it means they can save up enough money to take “an adventurous vacation.” Millennials are the “YOLO” generation (“You Only Live Once”). They want to be “firsthand experiencers,” whether it’s eating out, traveling, or attending music festivals. “Inwardfocused values,” such as happiness, passion, and sharing are ranked higher by millennials than “collective-focused values” of boomers, such as integrity, family, and practicality. Katie Elfering, a consumer strategist with CEB Iconoculture, told Forbes in a recent interview that millennials might be seen as the generation consumed with ‘selfies,’ but that isn’t really what they are about. “Millennials are misunderstood, in large part, because they aren’t approaching adulthood the same way that previous generations have,” according to Elfering. Brands will miss the mark if they don’t connect with millennials on their own terms, says Elfering. “First, understand and speak to the values that drive them – happiness, passion, diversity, sharing, and discovery. Second, understand their realistic lifestyles and experiences and find ways to amplify their reality. And finally, make sure they feel informed and involved, not just marketed to. By following these three strategies, brands will find more opportunities available to them to gain this generation’s affinity.” These insights into millennials can tell you a lot about how to shape your marketing messages when you want to reach this audience. 25 #56 “Brand authenticity” is a concept that is being bandied about quite frequently these days, so I thought it would make a good topic for discussion. Let’s start with a simple question: How do you know if your brand is authentic? Business psychologist Rebecca Newton writes on the HBR Blog Network that a brand is authentic “when culture and brand are completely aligned.” She cites an example of a large coffee chain that runs a multi-million dollar ad campaign suggesting that their local cafes are “just like home.” When the customer enters one of the chain’s local cafes, she is greeted in a warm, personal manner by an employee, but as she gets her order, she notices a sign that offers a “friendly” suggestion to not use a laptop during peak hours. As Newton suggests, “at home…I use my laptop whenever I like for however long I like,” so promising that the local café is “just like home” is hardly accurate. In fact, such a claim serves to undermine the entire ad campaign and damage the brand’s authenticity. “People largely make decisions based on their experience,” writes Newton. “…if an organization sends a message that is different from a customer’s experience, that customer tends to believe their experience – and they are likely to feel less positive about that organization than if they had just had a nice enough experience without any brand messages.” Now apply the lesson from the above example to your own brand. Maybe you operate a bluegrass music store, run a record company, belong to a bluegrass band, or promote bluegrass festivals. Ask yourself these questions: • • • • Are your culture and brand completely aligned? Are the values your brand represents clearly conveyed to your audience? According to Rebecca Newton, “Meaning comes from the honest conversations and daily behaviors that mean those values are really lived.” Do you portray and promote your brand consistently in an effort to meet or exceed the expectations of your audience? Does everyone who represents your brand embrace your culture? Rebecca Newton writes, “When all organizational members have a shared understanding of the culture and the cultural goals – what it really looks like in practice, what it means and why it’s important to their and the organization’s success, people can take calculated risks, become more creative, and can make decisions on their own without constantly consulting a rulebook.” Nowadays, brands that aren’t perceived by consumers as authentic are all the more vulnerable; consumers have been empowered to voice their opinions and share them via websites, social media and word of mouth. As a result, a brand that lacks authenticity could ultimately be shunned by consumers. That’s why it pays to work hard to ensure you have an authentic brand. 26 #57 Last time I wrote about the importance of being an authentic brand. I discussed the fact that the culture of an organization and the brand it represents must be “completely aligned.” One way authentic brands achieve this alignment is to use a technique that at first glance seems simple: It’s called storytelling. Bluegrass music itself is built around telling stories, so you’re undoubtedly familiar with the concept. What makes stories so essential in promoting a brand? As brand expert Jon Hamm writes, “…stories are important because they are inherent to the human experience. Stories are how we pass on our accumulated wisdom, beliefs and values. They are the process through which we describe and explain the world around us, and our role and purpose in it.” You’ll notice that great brands tell stories about themselves and their customers in a variety of ways. In fact, some brands are so powerful that their stories become legends. The famous Nordstrom “tire chains” story is a great example: One day a man entered a Nordstrom store claiming that he bought tire chains there and wanted to return them. Even though Nordstrom doesn’t sell tire chains, and the customer’s receipt was from a different store, the Nordstrom associate refunded the man’s money out of her own pocket. She then took the tire chains and the man’s receipt to the store where he actually purchased the tire chains and got her money back. That’s the kind of customer service story that legends are made of. Often, the story of a brand’s founder reinforces brand authenticity, because that person’s values become inherent in the brand’s culture. Take L.L. Bean, for instance, one of America’s great mail order companies. The company was started in Maine by Leon Leonwood Bean in 1912, an outdoorsman who had a simple yet compelling goal: keeping customers satisfied. Leon made quality products and guaranteed them for life. His original guiding principle is just as true today; L.L. Bean, a private family-owned company, has built a sterling reputation for customer satisfaction, still upholding the iron-clad satisfaction guarantee of its founder. Susan Gunelius, writing in Forbes, shares five “secrets” for effective brand storytelling: 1. 2. 3. 4. 5. Speak truthfully Infuse personalities into stories Create characters your audience will root for Include a beginning, middle, and end Don’t give it all away. Gunelius says, “As with all brand building efforts, your goal is to surround your consumers with brand experiences (including stories), so they can self-select how they want to interact with your brand.” So think about your own brand. What stories do you have to tell? 27 #58 “Content marketing” is getting a great deal of attention from marketers these days. What exactly is it? This is the definition provided by the Content Marketing Institute: “Content marketing is a marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience – with the objective of driving profitable customer action.” One of the reasons for the dramatic growth of content marketing is the transition to electronic media. In the digital world, providing high-valued information is a proven effective way to engage prospects and customers. Because the content is digital, it is very easy to distribute. Before we examine the specific types of content that seem to be most effective, it might be a good idea to discuss why content marketing works. Look at your own bluegrass customers and prospects. Most if not all of them are using smartphones and tablets to get information about your products or services, when and where they want it. Increasingly, though, consumers want to be educated and informed instead of getting a “hard sell.” Some experts call this “permission” or “non-interruption” marketing. If you provide information that they regard as valuable, consumers will reward you with their business and loyalty. In today’s competitive market, that is no small victory for a marketer. Content marketing doesn’t stand alone; it is part of your overall marketing program. For example, if you sell bluegrass instruments, you might incorporate content marketing by disseminating information about the history of instruments, how they’re made, the famous musicians who use them, and so on. You would publish this content periodically in various forms and offer it to your customers and prospects. While your objective is to share nonpromotional content, you also want readers of the content to know who created it and why. A brief word about your company, product or service, as well as a call to action, is perfectly appropriate at the end of the content you are providing. Giving away valuable content has become the norm, but most marketers do so in order to generate leads. Typically, this means that a marketer needs to somehow qualify an individual who requests information. Most often, the marketer will provide an online request form that needs to be completed to gain access to a download. A general rule of thumb is that the less information you ask for (just name and email address, for example), the larger the quantity of leads, but the less qualified the leads tend to be. The more information you ask for (gender, address, phone number, level of interest, etc.), the smaller the quantity of leads, but the more qualified the leads tend to be. This is a tradeoff all marketers struggle with; you have to decide which approach fits with your marketing objectives. Next time, we’ll take a look at the specific forms of content that are proving to be most effective for marketers. 28 #59 Last time, I talked about the growth of content marketing as a strategy for engaging customers and prospects. Now let’s take a look at some of the specific types of content that are proving to be most effective for marketers. Blogs, e-newsletters, websites and microsites, special reports, white papers, research studies, slide shows, podcasts, webcasts, videos, mobile apps, social media, search, and even writing guest posts for other online publications are all forms of content that can be used for marketing. The best content is original, but repurposing previously published content can also be effective. Here are some of the main forms of content that can be used in support of a marketing program: Websites and microsites For most companies, their website is still the core of any content. The difference in content marketing, however, is that a website needs to be more informational than promotional. For this reason, some companies create microsites – specialized websites designed to appeal to a certain audience and provide informative content. Often, these microsites position the company as a “thought leader” in a particular area. Blogs Blogs are effective because they offer fresh content on a frequent basis. Blogs continue to be popular with big and small companies alike. A recent study of Fortune 500 companies, for example, indicated that 31 percent had corporate blogs in 2014, while over 50% of the Inc. 500 use blogs. Blogging platforms such as Blogger, Tumblr, Typepad, and Wordpress make blogs easy to set up and maintain. An added benefit of blogs is they can positively influence search rankings. E-mail and e-newsletters E-mail and e-newsletters are legitimate content tools. Marketers can use a series of e-mails or periodic e-newsletters to disseminate valuable content. Inviting customers and prospects to sign up to receive either e-mails or e-newsletters is an effective strategy for building a permission-based list. Sound Marketing for Bluegrass is an example of e-mail content marketing. Multimedia Numerous multimedia forms – slide shows, podcasts, webcasts, videos, and mobile apps, for example – can be used to reach consumers in new and different ways. Multimedia formats breathe life into content, adding audio and visual engagement. Video is growing dramatically as a form of very popular marketing content, and videos do not have to be professionally produced to be effective. Social media Most marketers now use social media; for example, 80% of Fortune 500 companies are on Facebook, and 83% have corporate Twitter accounts. Social media can be effective in 29 sharing content and then encouraging others to share that content. Ideally, social media also gets people talking about your product and sharing their positive perceptions with others. Social media efforts have to be viewed as ongoing and long-term rather than quick hit sales generators. One final word about content marketing: As effective as it can be, creating quality content takes time. Most marketers, however, find that it is worth it. Content has value, and making a commitment to content marketing is likely to pay off in attracting and engaging prospects who become long-term, loyal customers. 30 #60 The end of the year is traditionally a time to take a peek into the future, so I thought I’d do just that in November and December. This month, let’s put our visionary hats on and see where customer service is headed. Why customer service? Because it is one of the best ways you can differentiate your business from your competition. In a worldwide survey conducted by Accenture, 66 percent of consumers said they switched businesses or brands as a result of poor customer service. Of those who switched, 82 percent said the business or brand could have done something to stop them. One simple way to make sure you are meeting customer needs is to take advantage of social media channels. Twitter is a quick, easy method of interacting with customers. Still, only 22 percent of marketers use it for FAQs and how-to content, even though 59 percent of those who do so say it builds long-term audience engagement, according to a survey by Exact Target. Facebook is also an often under-utilized customer engagement tool: Only 34 percent of marketers use it to answer customer service questions, but 69 percent of those who do so say it is effective, reports Exact Target. In the future, customer service will become even more complex. Consumers will expect more of businesses, especially when it comes to the digital economy. For example, new research from Contact Solutions shows that 3 out of 4 shoppers shop online, and these consumers have high expectations for retail care when shopping via a mobile device. If those expectations aren’t met, they’ll abandon the experience entirely. In fact, 92 percent of shoppers want customer care automatically provided within an app to help complete a task or goal. Even traditional retailers are upping their online game. For instance, Target recently announced it will offer universal free shipping for online sales in time for the holiday shopping season. Walmart already offers free shipping, but only on orders more than $50, and Amazon.com offers free shipping on orders of $35 or higher. Ultimately, customer service is a key component that proves to be among the most important factors in maintaining consumer loyalty. According to a study by The Society For New Communications Research, “Once loyalty is established, consumers depend less on the input or opinions of others. In these situations, continued loyalty is more heavily weighted toward quality, customer service and price.” Bluegrass marketers can learn from examining and evaluating other marketers and retailers who are putting a renewed emphasis on customer service, which will become increasingly important in the future. Next time, I’ll share some specific trends that will define the future of customer service in 2015 and beyond. 31 #61 Last time, I offered you some examples of the way in which customer service is changing, particularly in our digital economy. Now I’d like to share with you some specific customer service trends. Trendwatching.com, an organization that reports on global trends, has identified five trends that will redefine great customer service in 2015 and beyond. While some of these trends may seem like “blue sky thinking,” they could very well become the criteria by which customers measure the service provided by businesses in the future. 1. Plan B This trend suggests that forward-thinking companies will offer a “Plan B” with their products, “access when needed to an alternative or backup product which overcomes limitations in the original, puts right an emergency (I’ve run out! It’s broken! It’s lost!), addresses a common pain point, and more.” For example, at the UK’s Glastonbury Music Festival in June 2014, a telecom company launched the “EE Festival Power Bar.” Anyone who purchased this mini-charger for cellphones could trade it in at the official “EE recharge tent,” where it was replaced with a fully charged device. Unlimited swaps were available to festival-goers. 2. Video Valets Customers who become dissatisfied with online or telephone support will like this trend: Companies will increasingly offer “webcam-enabled face-to-face interactions with their customer service representatives.” A natural evolution in customer service, this trend is already in evidence with the “Mayday button” introduced by Amazon on its Kindle Fire HDX tablet. Mayday allows users to instantly communicate via live video with a customer service representative. 3. Deliver (More Than) the Goods Trendwatching says, “Get ready for a smartphone-fueled rush of delivery innovations.” One such innovation, demonstrated by Volvo at the Mobile World Conference in March 2014, is “Roam Delivery.” This free service is an app that allows customers who order online to have merchandise or even groceries delivered directly to their vehicles instead of a traditional physical address. 4. Sixth Sense While consumer data collection has become standard practice, forward-thinking businesses will begin to use this data in real-time to “shape and enhance” the service consumers receive not just online, but in physical spaces. You’ve probably heard of Google Glass, the futuristic glasses that put a world of data within reach. In Denmark’s Copenhagen Airport in June 2014, passenger services staff tested Google Glass to access gate, baggage and flight information. 32 5. Politeness Pays According to Trendwatching, “smart brands will realize that it’s often other consumers who have the greatest impact on customer experience – good or bad. So they’ll encourage – or even force – every consumer to do their bit when it comes to creating a positive atmosphere and ensuring processes run smoothly.” For example, in May 2014, McDonald’s and Coca-Cola in the Philippines worked together to create a free app, “BFF Timeout,” that rewards diners for not using their phones in restaurants. Points are earned for every moment that cellphones are left alone. Have you already seen examples of these five fascinating customer service trends in action? How will your bluegrass business keep up with the future needs and increasing demands of your customers? I hope this email has spurred some of your own creative thoughts! 33 #62 Last month, I peeked into the future of customer service. This month, I’m taking a look ahead to what we can expect the future to hold in two key areas that impact marketing: the Internet and mobile communications. We’ll start with the Internet, sometimes referred to as the “World Wide Web,” which marked its 25th anniversary this year. The Pew Research Center studies the Internet continuously through its Internet Project. The Center asked over 2,500 experts for their predictions of digital life in 2025. While 2025 may seem to be far into the future, we can already see how some of the things shaping our current use of the Internet will evolve in the next ten years. Most experts agree that there will be “an ambient information environment where accessing the Internet will be effortless and most people will tap into it so easily it will flow through their lives ‘like electricity,’ ” according to the Pew Internet Project. Even more interesting, experts expect an “Internet of Things” to evolve from the current Internet. This emerging networked computing environment will span the world and encompass not just information, but the devices that feed it, such as smart sensors, cameras, software, databases, and massive data centers. Part of the Internet of Things will be technology we are already witnessing today – portable smartphones and tablets that are becoming more and more powerful, and wearable technology, such as the Apple Watch and Google Glass. Still to come will be implantable technologies. Also on the horizon is the “tagging, databasing, and intelligent analytical mapping of the physical and social realms.” This will likely make things we can only begin to imagine possible. In terms of the impact of this futuristic Internet on marketing, it will undoubtedly affect some of the fundamental tenets of marketing. You can likely expect that marketing will be extremely personalized and individualized. Collecting and sharing data about consumers’ purchasing preferences and shopping attitudes will become commonplace. That could change the entire method of attracting prospects and converting them to customers, as well as have broad implications for the marketing of brands. Technologies will make it possible to efficiently target specific people with pinpoint accuracy, to the extent of predicting when and where they will make a purchase. This could change a marketer’s relationship with a customer in a profound way. Even today, retailers can personalize digital communications and offer customized purchase incentives to shoppers who are passing by their stores. It may be difficult to envision exactly how this new Internet will impact your bluegrass business, but you can expect that the future will bring with it new ways of listening to bluegrass music, sharing it with others, and purchasing not only bluegrass music, but bluegrass services and products. The bluegrass marketers who understand that the digital world is not just here to stay but that “digital life” will be the norm are those who will flourish. 34 #63 Last time, I wrote about what the Internet might look like as we move into the future. Now I’d like to talk about mobile communications. Today, more people own smartphones than ever before and they spend more time using their smartphones than watching TV or working with laptops. JWT, one of the world’s foremost marketing agencies, makes some interesting observations about mobile in its report, “10 Mobile Trends for 2014 and Beyond.” JWT’s predictions dovetail with the “Digital Life in 2025” report I mentioned earlier this month. JWT agrees with experts cited in that report: an “Internet of Things” is on the horizon. JWT predicts that “integrated, holistic systems will start to link up devices, goods and services in the home, on the road and beyond so that each component works in lock step with the rest.” The implications for marketers, says JWT, is that “products blur with services and manufacturers become service providers… the product is therefore just one element of a broad service offering that is potentially personalized around consumers’ needs, patterns and behaviors.” JWT sees mobile becoming “the prime screen for content consumption.” Mobile is already the fastest-growing segment of online video and by 2016, it may comprise half of all online video consumption. JWT believes marketers need to retool not just for mobile, but for “omnichannel” marketing, because consumers are increasingly moving among devices and using devices simultaneously (using their smartphones, tablets, and televisions all at once, for example). Being constantly connected means being able to access content anywhere and anytime – and being able to share it as part of being socially connected, too. Here’s an important point that marketers also need to accept in an increasingly mobile world: consumers are communicating visually. As a result, says JWT, “a high degree of visual literacy will be imperative for brands.” Pictures and videos will not only be nice to have, they will be mandatory for marketers in the future. While consumers will enjoy the emerging freedom of a wholly mobile world, they’ll also come to recognize the importance of privacy and security. That means “brands will need to bake security and privacy in to all phases of their operations, and transparency about how customer data is used will be essential,” according to JWT. A final big idea: Since mobile connectivity will be ubiquitous, “almost every company will become a technology company in one way or another,” says JWT. “As mobile connectivity blurs and meshes the physical and digital worlds, goods and services will need to seamlessly integrate the two for an omnichannel future.” So it seems that bluegrass marketers have a brave new world to look forward to in 2015 and beyond, with an Internet that connects everything, and mobile connectivity that changes everything. This is what the future holds, and marketers will need to embrace it. Best wishes for the New Year! 35 #64 The start of a new year is always a good time to take stock of your brand and your marketing. It is also a time to consider how to make the most of what experts have predicted will be key trends this year. One of those experts, Robert Passikoff is the founder of Brand Keys, a leading consultancy that does extensive research on brands. His firm analyzed over 150,000 predictive loyalty and engagement assessments at the end of 2014 to identify several brand and marketing trends, which are listed in his article for Social Media Today. I’ve selected a few of these trends and commented on how, as a bluegrass marketer, you can turn each to your advantage: “Everyone of a Kind: Consumers will crave more and expect more customized and personalized products, services and experiences.” No one knows your customers better than you do, whether they’re bluegrass music fans, event attendees, musicians, or product purchasers. This is the year to apply that knowledge to creating programs, products, and services that truly recognize each customer as an individual. Start by collecting and analyzing data about each of your customers, especially their purchase and preference information. Your customers want to know that you understand their needs and wants. Don’t underestimate the power of a personal contact that recognizes the unique characteristics of a customer. “Real Brand Engagement: With awareness a given, marketers will link ‘engagement’ to how well the brand is perceived versus their category’s Ideal, rather than just counting ‘likes’ or leveraging imagery.” We’ve seen a real evolution in the way brands present themselves. One of the big changes is what you might call brand depth – brands are going deeper in describing their key attributes and differentiating benefits so consumers can make more informed decisions about doing business with them. You notice this in the way brands describe their roots, in their support of humanitarian causes, and in their social responsibility. This is all part of building a rich, authentic brand that really connects with customers. Think about how this relates to your specific business. How can you present your brand to bluegrass customers so that it looks and feels as authentic as bluegrass music itself? (See “non-fiction storytelling” below for more about this idea.) “Real-Time Becomes Real Important: Increased real-time brand expectations will spread to product availability, delivery, and customer service.” Like it or not, retail and online marketers have trained customers to crave instant gratification. Nowadays, they expect products to be readily available, delivery options to meet their timeframes, and customer service to be instantly responsive. Festival attendees, for example, are much more comfortable today ordering and printing tickets online so they have them in hand right away. Explore ways that your bluegrass business can “up the ante” when it comes to meeting real-time expectations and it will set you apart from your competition. “Non-Fiction Storytelling: Storytelling is fine, but the stories brands tell must reflect real brand values and category realities that differentiate and meet consumers’ believability criteria, otherwise marketers will end up entertaining rather than engaging.” 36 Storytelling has become a key way marketers connect with their customers. Bluegrass marketers have a real advantage in that bluegrass music is already steeped in stories, so customers are accustomed to storytelling. But how do you leverage that? You need to identify authentic stories about your own business, products, and services. You can tell compelling stories about how and why your business was founded, the “behind the scenes” story of a festival, how artists came up with a song idea, or the traditions surrounding particular instruments. Stories engage customers and align them with your marketing. Next time, I’ll cover some more important trends, especially in the online marketing world. 37 #65 Last time, I mentioned how bluegrass marketers could take advantage of some branding and marketing trends from branding expert Robert Passikoff of Brand Keys. Here are several more to consider – with a special emphasis on digital marketing. “Magnified Human Technology: Digital and mobile in all forms will fuel the sense of empowerment and possibility for consumers.” This is the year that digital or online marketing will quite likely become the most important means of reaching and influencing your customers. Digital marketing is already mainstream: it has reshaped the manner in which both big and small marketers do business. In particular, the growth of mobile marketing is skyrocketing, chiefly because of the mass adoption of smartphones and tablets. Consumers now carry their digital lives with them, and they fully expect the companies they do business with to adapt to their desire for mobility. This is an important concept for bluegrass marketers who may have resisted “turning the page.” The time for immersing yourself in online marketing is right now, because if you don’t, you’ll be left behind! “The Closing of the Showroom: The consumer will use 5+ online sources to facilitate actual purchase decisions, reducing reliance on traditional brick-and-mortars retail.” Call it the “Amazon effect,” if you wish, but the reality is e-commerce is booming and far outpacing traditional retail store sales. Your customers are actively comparing your products, services, and prices to others; it’s easier than ever for the average consumer to go online for comparative information. This doesn’t mean your customer will stop coming to your retail store, if you have one – but it does mean you need to offer more compelling reasons to do so. Even a bluegrass festival marketer is subject to this phenomenon, as bluegrass fans scour the Internet to see when and where events are being held. Be very aware of this new shopping dynamic and do everything you can to offer the most attractive prices, service, and differentiating benefits to stand out from the crowd. “Online Authenticity: As ‘The Internet of All Things’ matures, consumers will expect greater security as regards personal purchase data, which will act as a confidence builder for online sources and the brands using them.” Online marketing carries with it a natural concern about privacy and the protection of your customers’ data. Recent breaches of major retailers’ information systems demonstrate that no business is completely safe and secure. As a bluegrass marketer, you want to encourage customers to provide you with plenty of information to help you better meet their needs, and you should also be enabling online ordering. Still, doing business digitally requires extra measures to ensure that sensitive customer data is protected at all times. This means using trusted resources and systems that can provide safe, secure transactions so customers have complete confidence in you. “Dead-On Digital: Brands will shift their digital platform question from “should I be here?” to “what should I do now that I am here?” with success linked not to just outreach alone, but contextual relevance.” As I said earlier, there is no question that digital marketing is now mainstream, so every bluegrass marketer needs to be onboard with online. In fact, you need a marketing strategy 38 that fully integrates digital marketing with your other activities. You should assess what you’re doing now and what could be improved. For example, how effective is your website? Are you making the best use of email? How have you integrated social media into your marketing mix? How can you build online videos into your marketing approach? Are you making the commitment necessary to content marketing? Are you taking full advantage of online resources such as Bluegrass Today? It’s 2015. Is your brand marketing keeping up with the times? 39 #66 Last month, I shared some branding and marketing trends that will be likely to change the way we think about marketing. This month, I’m keeping with the trends theme, but concentrating specifically on digital trends for 2015. Why is it so important for you, as a bluegrass marketer, to know where the digital world is going? There’s a very simple reason: Because that’s where your customers now live. As I indicated last month, this is the year that digital marketing will probably become the most important means of reaching and influencing your customers. So let’s take a look at some of the key things you’ll need to know about with the help of eMarketer, a leading research firm that put together an insightful report entitled “Key Digital Trends for 2015.” 1. “Responsiveness” is key The concept of “responsiveness” will be a key marketing differentiator this year, because consumers’ expectations have reached a level that demands currency, relevance, and immediacy. Your customers will be expecting you to deliver current information that acknowledges the relationship you have with them, quickly and efficiently. They’ll expect responses in real-time: up-to-the-minute marketing details on your website, via email, and on social media networks. In addition, any content you publish will have to translate well to any device. As eMarketer says in its report, marketing will have to be “fast, flexible, fluid and contextual.” 2. Search goes mobile This year, mobile search is likely to surpass desktop search, says eMarketer. The adoption of smartphones and tablets is far outpacing desktop devices. As a result, consumers are transitioning their online activities, including search, to the mobile environment. Your customers are probably going to be searching for products, services, prices, locations, and more from a handheld portable device. As a marketer, whatever you do needs to take this into account. 3. The growth of programmatic advertising A digital trend that is likely to cross over into the traditional world is programmatic advertising. eMarketer predicts that, in 2015, programmatic advertising, or advertising that is purchased using software programs, will account for more than 50 percent of all digital display advertising. Programmatic advertising is likely to increase when it comes to TV advertising as well. This means ad buying will likely become much more sophisticated and targeted, as media buyers spend more time on strategy and less on ad logistics. 4. The “Internet of Things” will become a known entity I’ve written about the Internet of Things previously, but this year, predicts eMarketer, the concept will really gain traction. Everyone will begin to see the flurry of activity surrounding connected products and services that will be marketed to 40 consumers and businesses. For marketers, this connected world represents both a challenge and an opportunity because of sheer data. Writes eMarketer, “The opportunity is not about new screens, it’s about massive insights to be gleaned. The challenge, as with omnichannel marketing, will be to link the data effectively.” 5. The leveraging of cross-device targeting Marketers will benefit from the fact that applications and networks will seamlessly move from one device to another. As a result, advertisers will be able to target specific audiences, regardless of the device they are using. However, cautions eMarketer, “Our ability to reach and target consumers will outpace our ability to measure and attribute their actions – yet another example of marketers playing catchup with their audiences.” These five key trends could have a dramatic impact on all of us. Next time, I’ll discuss some additional trends that are on the horizon. 41 #67 Last time, I discussed five key digital trends that are likely to have a major impact on all of us this year. While those trends were a sure bet, the following are some additional trends that may or may not be big in 2015, according to eMarketer, a leading research firm. 1. “Wearables” are still emerging There was a lot of fanfare surrounding the Apple Watch when it was announced last year, and its availability this year might very well prove to be a driving force for this category. Wearable technology has seen dramatic growth, and it represents a major revolution in personal computing. Still, eMarketer reports that “penetration among US consumers is low across all subcategories of wearables,” so this is a trend that is still emerging and may be more than a year off in terms of its real impact. 2. Mobile pay could be a year away Mobile payment systems are also gaining traction, with such giants as PayPal, Visa, Apple, and Starbucks getting into the mobile payments game. The real issue with this trend, however, is consumer adoption. The usage of mobile pay and digital wallets will require “a fundamental change in consumer behavior that is unlikely to happen in the span of 12 months or less,” advises eMarketer, which predicts higher usage in 2016. 3. Social commerce is a non-starter Despite the belief of social network providers and supporters, e-commerce and social networking are not entirely compatible, at least from the consumer’s perspective. A 2014 survey suggested that only 5 percent of U.S. adult Internet users used a social network to make an online purchase. This doesn’t mean social networking is not a viable marketing medium – it works well for building relationships and providing customer service. But expecting consumers to make purchases within a social network environment is fraught with risk. 4. A content marketing backlash Content marketing has become an accepted form of marketing, so much so that most companies who use it intend to increase their investment in 2015. Interestingly, eMarketer suggests the possibility that this could be the year content may turn into clutter. Advises eMarketer, “brands should be thinking about listening more and speaking less, focusing on relevance over quantity, trying to segment and target content more effectively and shifting the balance from content creation to content amplification.” 5. Not yet ready to cut the cord There is a groundswell of news about consumers who are ready to cut the cord on cable and other pay TV subscription services, but the reality, reports eMarketer, is more like “cord-shaving, where consumers reduce what they spend, rather than eliminating it altogether.” Still, big changes are on the horizon, as online companies like Amazon and Netflix get into original television and movie production, and HBO 42 and others start to offer streaming services. eMarketer advises marketers “to play close attention to consumers’ shifting video consumption habits. TV is holding steady. … But mobile is the channel that’s growing.” I hope you found this month’s review of digital trends of value. As marketers, we all need to be aware of the seismic shift that’s happening in the media world and recognize that the communications world we live in is rapidly moving to a digital platform. 43 #68 Are you a marketing innovator? That’s something you should be thinking about this year, because marketing innovation could make the difference between a bluegrass business that thrives rather than merely survives. The good news is that marketing innovation doesn’t have to cost you a lot of money. For quite some time, I’ve been writing about the fact that bluegrass marketing is undergoing a major shift to digital marketing. One great advantage of digital media versus print media is the huge cost difference. Typically, digital media is significantly cheaper than traditional media, both in terms of execution and media placement. In addition, you have many more options with digital media, including online advertising, search, video marketing, social media, and email marketing. Cost-effective technology has made innovation more accessible than ever. The digital world is fertile ground for innovation, and bluegrass is no exception. For example, last month on Bluegrass Today, John Lawless wrote about Bluegrass Roundup, the world’s first online bluegrass festival, created by Concert Window. This unique online event, which ran from February 20 through 28, featured fifty acts from all across the U.S. performed in back-to-back sets, just like a traditional festival. In describing the Bluegrass Roundup performances, Lawless wrote: “Some will be beamed your way from concert stages, others from a performer’s home, or a hotel room. All will be delivered to your digital device, computer or TV set (depending on software and connections) in high definition video and sound. You can pick and choose the sets you’d like to watch, or plop down and watch them all, end to end.” Emma Beaton, Concert Window’s Artist Relations Manager, told Lawless: “A lot of people don’t think that bluegrass fits with new technology. But bluegrass artists have really embraced new technology, especially online.” Think about the implications of this event for a minute. Even a year or two ago, something like an online bluegrass festival would have been just a dream, but now it is a reality. Live digital transmission is commonplace. Music fans of all genres expect to be able to watch live events and videos, as well as listen to music, online. Music downloads are quickly replacing CDs, and digital radio is increasingly popular. Consumers are more connected than ever before. Portability has reached across all demographic segments as consumers are carrying their entertainment with them via smartphones and tablets. Bluegrass Roundup is a relevant example of how digital innovation is having a direct impact on the business of bluegrass. You’re likely to see more such innovations occur on a regular basis as bluegrass fans continue to transition to a digital world. This is where your customers want to go – and they fully expect bluegrass marketers like you to join them on their journey. 44 #69 Last time I wrote about digital innovation and referred to Bluegrass Roundup, the world’s first online bluegrass festival, created by Concert Window. This event, which ran from February 20 through 28, offered live back-to-back bluegrass acts just like at a traditional bluegrass festival, except all of the performances were online. I’m sure no bluegrass marketer believes that live online music events will completely replace the traditional festivals and performances that fans attend in person. But an online bluegrass festival is symbolic of the fundamental shift we are witnessing in consumer behavior. There can be little doubt that consumers are embracing online music, online video, and online events. Consumers of all ages are literally carrying their digital lives with them, and they expect marketers to accommodate this connected, portable lifestyle. This is why it is so important for bluegrass marketers to embrace online marketing. I can tell you from my own experience that there is nothing to fear. Over thirty years ago, when I was running a direct marketing agency, I saw that online marketing was beginning to replace traditional direct mail marketing. At first, I was intimidated, but when I studied what was happening, I realized that all of the same strategies and tactics I had learned to employ via traditional media could be transferred to online media. The basics of marketing hadn’t changed – just the delivery system. The challenge was to apply the expertise we already had to a new emerging online marketing world. That lesson served me well – my agency successfully reinvented itself. Today, the same thing is occurring but at an even faster pace. Your customers want a highly personalized online experience, but that really isn’t so different from the personal service you have always given them. The digital platform may be new, but the underlying timeless principles of sound marketing remain the same. With that in mind, do yourself a favor: Take a little bit of time to engage in a “digital marketing assessment.” Look at the effectiveness of your current digital marketing efforts and determine where you need to make improvements. One excellent tool for conducting such an assessment is the “Ultimate Guide to Assessing Your Digital Marketing Program,” which you can obtain free of charge from Silverpop, an IBM company. This guide recommends periodic assessments in the following 7 key areas: • • • • • • • Target Market Pipeline Content Engagement Technology and Skills Mobile Marketing Social Media 45 Silverpop’s white paper includes detailed information on each of these seven areas, as well as worksheets and related tools to help you do a thorough evaluation. It is normal to feel a bit overwhelmed by the change we see occurring in marketing – but just remember: digital marketing is nothing more than a new way to dress up the fundamental marketing truths we all know so well. 46 #70 This month, I’d like to talk about some big changes that will impact the future of retail. Why? Well, when you think about it, bluegrass marketers make use of the retail channel to sell products and services, including musical instruments, CDs and digital music, festival tickets, and more. Reinventing Retail: What Businesses Need to Know for 2015, is a new study by Walker Sands Communications. Based on a survey of more than 1,400 U.S. consumers, it examines changing trends and consumer behaviors in retail. The insights included in this study are so important that I want to share them with you. I believe knowing this information will have a direct impact on many of the marketing decisions you make this year. What’s the biggest trend in retail? Online shopping. Today, 68 percent of U.S. consumers shop online at least once per month, according to the study, and 28 percent make online purchases at least once a week. In terms of what consumers buy online, the top three items purchased directly from a retailer or from a third-party website are clothes/apparel, consumer electronics, and books. About 40 percent of consumers are receptive to purchasing any type of product online from either retailers or third-party websites. And here’s some very good news: 76 percent of consumers say they would spend more than $100 on a product purchased online without seeing it first, and 49 percent have spent between $101 and $500 on a product without seeing it first. In addition, 27 percent of consumers say they would even purchase a product online that cost more than $1,000 without seeing it first, as long as free returns were offered. The most powerful incentive for online shopping is free shipping, according to 83 percent of consumers. One-day shipping and free returns are just about even, at 62 percent and 65 percent respectively, as the next most powerful incentive. What can you, as a bluegrass marketer, take away from this data? For one thing, over twothirds of the population is regularly shopping online. This statistic fits in well with the fact that the consumer is becoming more digital. While bluegrass fans still make in-store and inperson purchases, they are increasingly more comfortable with online shopping. The falling price barriers for online purchases are also of significance to bluegrass marketers. Previously, consumers may have been leery of purchasing a product sight unseen, but now, it appears they are very confident of spending even a considerable amount of money purchasing a product online without seeing it first. That’s reassuring if you sell expensive musical instruments! 47 Finally, as you move to online selling, you need to keep in mind that free shipping is a strong incentive. You’ll notice that many online retailers temper this by setting a minimum purchase price before offering free shipping – but this is a trend you will likely have to address. Next time, I’ll share more from this study about mobile payments and emerging technologies. 48 #71 Last time, I shared some data from the Walker Sands study, Reinventing Retail: What Businesses Need to Know for 2015, regarding online shopping. I’m going to refer to this study again to take a look at two additional trends that will change the future of retailing. Let’s start with a look at mobile payments, or the ability for the consumer to pay for things via smartphones, tablets, and other portable devices. According to the study, “the shift to mobile payments accelerated rapidly over the past year, with Apple Pay opening up even more consumers to the possibility of using their smartphones at the point of sale.” This is evident in the study’s astonishing statistic: 40 percent of consumers used a mobile payment application in 2014, up from a mere 8 percent in 2013. Almost half of those individuals (45 percent) say they used Google Wallet, 41 percent used a banking payment app, and 33 percent used a retailer payment app. Apple continues to have a major impact on consumer shopping behavior: 36 percent of Apple iPhone users say they would be more likely to make a purchase on their smartphone in the near future because of the introduction of Apple Pay. Even 16 percent of Windows phone users and 8 percent of Android phone users say Apple Pay will influence their mobile payment habits. Still, the challenge for Apple and other mobile payment vendors is daunting, since 57 percent of consumers have security concerns and 48 percent have privacy concerns about mobile payments. Even if mobile payments take some time to gain traction, the digital consumer is increasingly leaving cash behind. While 56 percent of consumers believe cash is the most secure form of payment, 59 percent of consumers walk around with $20 or less cash in their wallets – and 18 percent say they have no cash in their wallets at all. As for emerging technology, there are two things consumers anticipate will significantly change their online shopping experience: drone delivery and virtual reality. According to the study, two-thirds of consumers expect to receive a drone-delivered package in the next five years. Almost 80 percent of consumers say they would pay for drone delivery if they could receive their order within an hour. Almost 90 percent of consumers say they would trust drone delivery of less expensive items. Virtual reality has the potential to increase online sales, but very likely at the expense of traditional retail stores. More than one-third of consumers (35 percent) say they would shop more online if they could try products virtually. Two-thirds of consumers (66 percent) say they are interested in virtual shopping, and another 35 percent indicate virtual reality would make them more open to doing more shopping online. As a bluegrass marketer, you may not currently be considering adding mobile payments, drone delivery, or virtual reality to your e-commerce capabilities – but it is important for you to understand where technology trends and consumer behavior are headed. The future of retail promises to be very exciting for those online retailers who make the most of it. 49 #72 Let’s talk about loyalty – brand loyalty, that is. This is a topic that should concern all bluegrass marketers. Why? Because a customer’s loyalty to your brand is both a challenge and an opportunity. Today’s marketing environment makes it tantalizingly easy for a customer to switch from one brand to another. Think about what happens when a customer walks into a retail store, for example. Store shelves offer many physical products from which to choose. Smartphones make it a snap for the customer to check prices while in the store and see if a branded product is cheaper somewhere else. This is the kind of retail experience that depresses a customer’s loyalty to both a specific brand and a specific store. The online shopping experience reduces brand loyalty even more. With simple searches, the customer is in control. In just a few minutes, the customer can compare and contrast a branded product’s features, determine the best price, and place an order, often with a satisfaction guarantee. Brand loyalty takes a back seat if the customer finds a cheaper product with the same basic features. Understanding contemporary consumer attitudes towards loyalty may help turn such challenges into opportunities. The “2015 Loyalty Report,” a new study of over 11,000 North American consumers, was recently published [by Bond Brand Loyalty, a leading brand loyalty firm. While the study analyzed consumers’ feelings about brand loyalty programs, which typically offer incentives for ongoing purchases, an interesting discovery was made. Some brands, such as Nike and Apple, generate high customer loyalty without formal loyalty programs. According to the report: “What is compelling is that these brands have crafted a value exchange that is not solely reliant on a discount and monetary exchange, but rather on one that fulfills customer needs, makes customers feel recognized and valued, and engages through relevant and personalized experiences. In short, these principles help brands outperform by making the experience with the brand better, get customers to a place where they’re willing to pay a premium, and make them more loyal to the brand.” High-loyalty companies may not have traditional frequent buyer-type loyalty programs, but, as the report indicates, “they have cleverly borrowed some of the familiar design principles of formal loyalty program design.” These principles include the ability to uniquely identify customers, carefully capturing, tracking and analyzing customer activity, and offering benefits beyond discounts focused on “genuinely meeting the needs of customers.” 50 What is the lesson for bluegrass marketers from these high-loyalty brands? It is really about recognizing that your customers represent a gold mine of opportunity for you. Get to know what they want, how they are most comfortable interacting with your business, and what they like about the products and services you provide. You can then understand and cater to their needs and tailor what you offer to each customer. Modern technology makes this kind of personalization and individualization possible. Treat your customers with care and the result will be brand loyalty you can count on. 51 #73 Last time I wrote about brand loyalty and mentioned brands such as Nike and Apple that create a high degree of loyalty by following some of the principles of brand loyalty programs. I want to talk a little more about loyalty programs themselves, because as a bluegrass marketer, you have the opportunity to use them to build the loyalty of your customers. As I discussed previously, getting a customer to be loyal to you is no small challenge. Bond Brand Loyalty’s “2015 Loyalty Report” found that consumers’ positive attitudes about loyalty programs increased from 2014 to 2015. The report showed “meaningful” year-overyear increases in such key consumer self-indicators as “Programs are part of my relationships with the brands” and “Programs make me more likely to continue doing business with certain companies.” Over one-third (34 percent) of customers say they would not be loyal to the brand if it weren’t for the brand’s loyalty program, and 43 percent of loyalty program members are very satisfied with such programs. Still, while the average number of loyalty programs in which consumers are enrolled climbed to over 13 programs per member this year, the average number of programs in which members are active declined to less than 7. “As loyalty becomes more crowded,” states the report, “it is more important than ever for brands to identify how their programs can differentiate and win.” An excellent example of a differentiated loyalty program is Amazon Prime. Amazon, of course, is the world’s leading online retailer. In addition to offering value, convenience, and excellent customer service to all of its customers, Amazon identifies its most loyal customers through Amazon Prime – a loyalty program that offers a host of benefits. While many loyalty programs are available at no cost, Amazon charges $99 annually for Amazon Prime, and millions of customers think it is worth the price. What do they get? In addition to free two-day shipping on eligible items, Amazon Prime members can take advantage of unlimited streaming of movies and TV episodes, unlimited ad-free access to digital music, secure unlimited photo storage, and access to eBooks for Kindle owners. Amazon periodically adds benefits to Amazon Prime to enrich its value. Amazon Prime was the highest ranked “midfrequency” retail loyalty program in the 2015 Loyalty Report. As you can see from the list of Amazon Prime benefits, Amazon offers specific, tangible reasons for members to continue to do business with the company. According to the report, to be successful, loyalty programs “need to provide utility to real customer needs, and brandright benefits that are easy and enjoyable to engage with.” How important is a loyalty program? In its report, Bond Brand Loyalty analyzed the “drivers of overall brand satisfaction,” dividing them into functional and experiential brand attributes. The top functional driver was “Quality of product/service.” The top experiential driver was “The brand meets my needs.” The second functional driver was “Consistency of product/service quality.” 52 The “Loyalty/rewards program” ranked as one of the third most important functional drivers. It was tied with two other functional drivers: “Availability of products/services” and “Value for money.” It was also tied with two experiential drivers: “Experiences at the brand are enjoyable” and “The brand treats me like a valued customer.” As is evident, a loyalty program has a high degree of importance in the consumer’s mind. One of the conclusions reached by Bond Brand Loyalty in its report is that “loyalty is the bridge between brand promise and customer experience.” Think about what kind of brand loyalty program you can implement, even if it’s modest. Building a base of loyal customers today will guarantee your marketing success tomorrow. 53 #74 In the past, I’ve written extensively about the “digital consumer” – how today’s consumers are connected to online content and entertainment wherever they are and whenever they want. One of the obvious reasons for this phenomenon is the mass adoption of the smartphone. Now, nearly two-thirds (64 percent) of Americans own a smartphone, according to the Pew Research Center. The smartphone is just a tool, however; what is really changing is the consumer’s attitude toward media consumption. Deloitte’s ninth edition of the “Digital Democracy Survey” offers us a glimpse into the mind of the U.S. media consumer. This survey, conducted in November 2014, studied consumers in five distinct age groups: trailing millennials (ages 1425), leading millennials (ages 26-31), generation X (ages 32-48), baby boomers (ages 49-67) and matures (age 68 and older). The survey indicated that the percentage of smartphone owners is even higher than previously believed (71 percent), and that the smartphone is the device consumers value the most. In addition, 82 percent of consumers own a laptop computer and 54 percent own a tablet. The three most valued services among consumers are (in order) home internet, pay tv (cable and/or satellite), and a mobile data plan. Perhaps the most significant trend revealed in the Deloitte survey is the prevalence of streaming. The majority of consumers (56 percent) use an online streaming service to watch movies at least monthly. (The highest usage is among millennials and the lowest is among matures.) In fact, 34 percent of consumers stream movies on a weekly basis. When it comes to television, streaming is preferred over live programming. Over half of consumers (53 percent) stream TV shows at least monthly. It seems as if consumers are also beginning to take television for granted. Ninety percent of consumers are multitasking while watching TV, according to the survey. Almost one third of consumers (32 percent) say they always or almost always browse and surf the web while watching TV, and 28 percent say they always or almost always read email or text message while watching TV. Only 10 percent say they do nothing else except watch television. As a bluegrass marketer, what can you take away from the survey results? First, you can assume that bluegrass fans generally have far greater mobile access to information and entertainment media than ever before. As a result, it is essential for your website to incorporate “responsive design” or be “mobile friendly” so it automatically adjusts to a smaller screen size. Having a mobile friendly site is not only important to accommodate consumers, it also leads to better search rankings by such services as Google. 54 Second, you can be sure that, increasingly, bluegrass fans are listening to Internet radio and downloading digital music. They may even be listening to bluegrass while they’re watching TV! Such services as Amazon Music, iTunes, and Pandora make it easy and convenient for bluegrass fans to take their favorite music with them, wherever they go. More key facts from the Digital Democracy Survey next time. 55 #75 Last time, I reported on select results from Deloitte’s “Digital Democracy Survey.” This survey, conducted in November 2014, studied consumers in five distinct age groups: trailing millennials (ages 14-25), leading millennials (ages 26-31), generation X (ages 32-48), baby boomers (ages 49-67) and matures (age 68 and older). I want to share some additional insights from the survey, this time about advertising and buying influences. Interestingly, the survey suggested that consumers tend to pay more attention to digital, or online ads, than to traditional television advertising. Almost three quarters of consumers (73 percent) tend to multitask on another device or activity more while watching television ads than online ads. While this behavior is most prevalent among trailing millennials (81 percent), it is still true of more than half of each of the five age groups. Consumers still do have a tolerance for advertising, particularly if advertising leads to discounted content. Almost two thirds of consumers (62 percent) say they would be willing to view advertising with streaming video programming if it significantly reduced the cost of the subscription. Finally, what influences consumer buying decisions? Recommendations from a friend, family, or known acquaintance are the most influential, according to 81 percent of consumers. Over 60 percent say an online review or recommendation from someone within a personal social media circle is influential, and half of consumers say even an online review by someone they do not know in real life will influence a buying decision. Almost two thirds of consumers (65 percent) say television ads play a major role in influencing buying decisions, while only 44 percent say magazine ads influence buying decisions. As a bluegrass marketer, you can see from the above statistics that you’re on the right track if you are pursuing a digital strategy as part of your marketing program. It’s important to note that online advertising appears to have more of an impact than television advertising. Online reviews and recommendations appear to be of significant influence on buying decisions, which makes it essential to keep customers happy and be responsive to comments received via social media. Increasingly, traditional magazines are losing their influence when it comes to consumer buying decisions. We continue to see a massive shift to digitally delivered music, video and information. Streaming has become an accepted form of media delivery. Consumers seem to be getting the content they want, on demand and on their mobile devices. This is the new digital world we live in – a world in which marketers must be ready and willing to adapt. 56 #76 Like most marketers, bluegrass marketers cannot help but acknowledge the importance of social media as part of an effective marketing program. The explosive growth of social media in the last few years is just one more piece of evidence that we live in an increasingly digital world. Social Media Examiner’s recently published Social Media Marketing Industry Report provides some valuable insights I would like to share with you this month. The report covers the use of social media by more than 3,700 marketers, over half of whom (61 percent) target consumers; the remainder targets businesses. More than one third (37 percent) of these marketers work for small businesses of 2 to 10 employees. Not surprisingly, almost all marketers (92 percent) say social media is important to their businesses. Almost as many (84 percent) say they have integrated social media into their traditional marketing activities. Still, measuring the ROI of social media remains a challenge: only 42 percent of respondents agreed that they are able to measure their social media marketing, even though 72 percent say they regularly analyze their social media activities. Do you ever wonder how much time marketers spend on social media marketing? A significant 64 percent are using social media for 6 hours or more, and 41 percent for 11 hours or more weekly. Almost 20 percent of marketers spend more than 20 hours per week on social media. What are marketers gaining from social media? According to respondents, the top two benefits of social media marketing are increasing exposure (reported by 90 percent of marketers) and increasing traffic (reported by 77 percent of marketers). Other benefits reported by 50 percent or more of respondents include developing loyal fans, providing marketing insight, generating leads, improving search rankings, growing business partnerships, establishing thought leadership, improving sales, and reducing marketing expenses. What types of content are most commonly used in social media marketing? A large percentage (71 percent) use visual assets, such as photos, in social media marketing. Almost as many marketers (70 percent) say they blog. Videos are used by 57 percent of marketers, while podcasting, used by just 10 percent of marketers, is still an emerging form of content. Nearly half of marketers (45 percent) say blogging is their most important form of content. The content area marketers want to most learn about, however, is creating videos. Next time, we’ll take a look at what the Social Media Marketing Report indicates about specific social media platforms and networks used by marketers. 57 #77 Last time, I shared some usage statistics from Social Media Examiner’s recently published Social Media Marketing Industry Report. The report covers the use of social media by more than 3,700 marketers, the majority of whom work for small businesses. Now let’s take a look at the social media networks and platforms commonly used by these marketers. What are the most popular social media platforms? As you might expect, the overwhelming top social media platform is Facebook, which is used by 93 percent of marketers. Twitter is second (79 percent) and LinkedIn is third (71 percent). The next four platforms in descending order are Google+ (56 percent), YouTube (55 percent), Pinterest (45 percent), and Instagram (36 percent). Despite Facebook’s dominant position, however, only 45 percent of marketers think their Facebook marketing efforts are working. Which social media platforms are the most important to marketers? More than half of marketers (52 percent) said Facebook was their most important platform; however, there is a significant difference between marketers who target consumers vs. those who target businesses. Almost two-thirds of consumer marketers (65 percent) say Facebook is their number one choice, while 41 percent of business marketers say LinkedIn is number one, followed by Facebook (30 percent) and Twitter (19 percent). What are marketers planning to change in their future use of social media? Twothirds of marketers (66 percent) plan to increase their use of Twitter, YouTube, and LinkedIn, while 62 percent plan to increase their use of Facebook. According to Social Media Examiner, there has been a decline in the use of Facebook by marketers over the past two years. Instagram, on the other hand, has seen an increase in planned usage from 42 percent in 2014 to 52 percent in 2015. Which social media platforms are marketers most interested in? Marketers want to improve their knowledge primarily about Facebook, but LinkedIn, Google+, Twitter, and YouTube all rank relatively high (over 50 percent each) as social media platforms marketers want to learn more about. While Snapchat has gotten a lot of buzz lately, 82 percent of marketers say they have no plans to use it. In terms of new social networks, marketers are generally conservative when it comes to new social networks – only 5 percent actively adopt new social platforms. How are marketers using paid social media? An overwhelming majority of marketers (84 percent) say they use paid Facebook ads. Google ads are used by 41 percent of marketers, while LinkedIn ads (18 percent) and Twitter ads (17 percent) have far less usage. A majority of marketers (53 percent) plan on increasing their use of Facebook ads. These statistics are indicative of current usage and trends. They give you insights into the time commitment, benefits and platforms that your peers are using. 58 #78 A Special 4-Part Tutorial for Artists: Getting Your Music to Market The upcoming IBMA’s World of Bluegrass 2015 (September 29 through October 3 in Raleigh, North Carolina) is the premier annual celebration of bluegrass music. It’s also a great time for bluegrass artists to take stock of where they are and where they want to go. For every artist, it’s all about the music, of course. But becoming a successful artist – one whose music is both appreciated and purchased by fans – is a big challenge. That’s why we’re devoting the next four issues of our email newsletter to a special 4-part tutorial for artists called “Getting Your Music to Market.” Part 1: You’ve Got an Album. Now What? You’ve worked hard to lay down some great tracks… and now you’ve got an album. So you can just sit back, relax, and watch the album sales take off, right? Well, not quite. Even before you release your album to the public, you should be building anticipation for it. In fact, you need to be promoting your album as much as 30 to 60 days prior to its release. Here are a few of the things you can do to get some pre-release buzz going: 1. Invest in a great album cover. The cover itself is very important, because the image will be seen over and over again, both on physical copies and in digital media. This is not the time to get your cousin Charlie, an amateur photographer, to snap a photo of yourself or your band. It pays in the long run to get a professionally photographed and designed cover so DJs and fans will take you seriously. 2. Make sure you are visible online. You’ve seen the massive transition in music to the digital world. The same is true of marketing, which is largely dependent on electronic media. It is vital that you have an online presence before you release your album. In addition to a website, you should be active on social media. Having a Facebook page is virtually mandatory for music marketers, and other social media, including YouTube, Twitter, Pinterest, and Instagram, are just as essential to help increase visibility and engagement. It is also wise to make sure you have a presence on Bluegrass Today. 3. Get your existing fan base involved. Your current fans are your best customers for your next album. You should let them know about a new album well before its public release. If you have an email list of fans, send them an upbeat email newsletter about the album and include two calls to action: 1. Tell them they can pre-order it (if possible) or give them a specific date when it will be available, and 2. Ask them to tell family and friends about your album so they act as your own informal sales force. In addition to email, you can get the word out via your website, social media, and on tour. 59 4. Tell the “bluegrass public.” Bluegrass fans are a special breed of music lovers. While they may have their own favorites, they tend to want to support bluegrass artists in general and see them succeed. That’s why you want to make sure as many bluegrass fans as possible know about you and your upcoming album. If you or your record label can afford it, you might want to consider engaging a public relations (PR) person or firm that specializes in helping independent performing artists. A PR professional can help you by writing an effective press release for your album, developing a solid bio, and getting some top-notch publicity photos. But even if you do it yourself, make sure to get your name and music out into the marketplace in as big a way as possible. 5. Make bluegrass music professionals and radio DJs your best friends. Other bluegrass artists and music professionals, along with radio DJs, are the real influencers who can make the difference in whether your new release gets exposure. The bluegrass music business is not huge: everybody in bluegrass pretty much knows everybody else, so make sure you know them and they know you. When it comes to DJs, there are some specific actions you should take – and that’s what we’ll cover in Part 2 of this tutorial. 60 #79 A Special 4-Part Tutorial for Artists: Getting Your Music to Market In Part 1, we discussed how to build buzz for your album prior to its release. Part 2: How to Get Airplay The most crucial part of achieving success in getting your music to market is airplay. It’s a pretty simple concept: In order for bluegrass fans to buy your music, they have to be exposed to it. The more airplay you get, the more opportunities for current and prospective fans to hear it. But here’s a little secret you may not know that can make all the difference in the world: You need to pick out just one song to focus on and get that into the hands of DJs well in advance of the album’s release, typically from 30 to 60 days beforehand. Why? Because if you release the whole album right away, your songs will actually compete with one another. DJs may play several of your songs, and if the number of airplays are spread across more than one song, it’s possible that none of those songs will move quickly up the charts. So restrict your first contact with DJs to a single song, and then release the rest of the album later. In any event, always make sure DJs have access to your music well before it is released to the public, because radio needs lead time. When contacting DJs, always put your best foot forward. Show them a lot of love and respect! After all, they’re the ones who make the decision whether or not to give your music airplay. There are services available that can help you distribute your music electronically only to DJs. However, while sending your music electronically may be convenient and inexpensive, most DJs still like to have a physical CD. If you have to keep your costs down and can’t afford to send complimentary CDs to every bluegrass DJ, at least send out CDs to the top bluegrass DJs. These are the DJs who are on satellite radio and those who are “syndicators” – DJs who broadcast their shows to multiple radio stations. You can find a comprehensive listing of bluegrass DJs on Bluegrass Today here: http://bluegrasstoday.com/broadcasters/ Airplay charts play an important role in tracking popular songs, and Bluegrass Today’s weekly and monthly airplay charts are the de facto standard for national airplay in bluegrass music. Each week, we poll more than 100 bluegrass DJs via an email survey and they report on how many airplays they gave to a particular song. We tabulate the results and rank the songs. DJs and the listening public view these airplay charts to make their own playing and purchasing decisions. 61 During the DJ survey process, Bluegrass Today offers an opportunity for bluegrass artists to advertise their music. Artists can get their albums in front of these DJs via an artist promo page with banner ads appearing inside each email survey. DJs also see the artist promo page when they exit the survey. The artists’ banner ads can link directly to anything you want – a website, contact information, or direct access to music downloads if desired. For more information about this service, email: [email protected]. In Part 3 of this tutorial, we’ll talk about how to support retail sales of your music. 62 #80 A Special 4-Part Tutorial for Artists: Getting Your Music to Market In Part 2, we covered how to get airplay. Part 3: How to Market via Retail Channels If you follow the advice we offered in Part 2, you should have an excellent chance of getting your music played on the air. As we said earlier, more airplays mean more exposure, both to DJs and to bluegrass fans. Songs that are highly ranked on airplay charts garner attention from DJs who have yet to play your music. Bluegrass music lovers also use these charts to sample songs and ultimately buy albums. While airplay is crucial, it is just as important to make sure your album is readily available to the public. These days, fans can purchase digital music and CDs from a wide variety of sources, and some fans prefer one source to another. As a result, your music needs to be available on as many music platforms, or retail distribution channels, as possible. These include such major retailers as Apple Music, Amazon for CDs and digital music, Google Play, and iTunes. The good news is you do not have to distribute your music to each of these retail channels individually – services are available to do this for you. For example, one such service, CD Baby, [http://members.cdbaby.com/] makes it possible to embed a music store in your own website, use CD Baby’s Facebook Music Store, distribute your music through more than 95 digital distribution partners, and sell your CDs through over 15,000 record stores worldwide and on CDBaby.com. CD Baby also distributes vinyl records through record stores and provides a CD manufacturing service with no minimum production requirement. Another aspect of retail marketing is creating demand for your music. Creating demand combines airplay and broad availability of your music with desirability. You can best achieve desirability by getting positive feedback and reviews of your music, both from music professionals and fans. As we mentioned in Part 2, cultivating relationships with DJs is a key element of creative desirability by getting airplays. It is very important to get your CD into the hands of industry influencers, such as Bluegrass Today. To get your CD considered for inclusion in our airplay charts, send it to: Bluegrass Today, P. O. Box 125, Brentwood, TN 37024-0125. To get your CD considered for editorial review, send it to: Bluegrass Today Editorial Dept., P.O. Box 21061, Roanoke, VA 240180108. Bluegrass Today also offers banner ads, promotional emails, and advertising packages to help you gain exposure to both DJs and music fans. For more information, email: [email protected]. In Part 4, we’ll offer some final words of advice for getting your music to market. 63 #81 A Special 4-Part Tutorial for Artists: Getting Your Music to Market In Part 3, we covered how to market via retail channels. Part 4: Putting It All Together In Part 1 of this tutorial, we laid out a pre-release strategy to get buzz before your new album comes out. Part 2 covered getting airplay, and part 3 covered how to market via retail channels. Now we’ll wrap things up by talking about how to put it all together. The most successful bluegrass artists recognize that they need to develop a complete promotional strategy when they release new music. They never take DJs and fans for granted or rest on their past successes. These artists are always marketing their music – before, during and after an album release. All of the tips we shared in the first three parts of this tutorial regarding pre-release activities, airplay, and retail channels come together as part of a complete promotional strategy. Let’s review a few of the key points: 1. A great album cover is an essential factor in creating pre-release buzz. 2. Online visibility through your website, social media, and Bluegrass Today is a key part of your promotional strategy. 3. Make DJs your friends and be sure to get your new music to them well in advance of your public release. 4. Focus on one song at first and strive to get maximum airplay from DJs for this song before you release the rest of your album. 5. Engage existing fans, using them as an informal sales force to spread the word. 6. Reach the bluegrass public via advance buzz and effective public relations. 7. Use a distribution service to get your music broadly distributed across many retail channels. You can often distribute CDs and digital music through the same service. 8. Get visibility as well as positive reviews from fans, DJs, and media such as Bluegrass Today. You can add to the above tactics to make your promotional strategy even stronger and more comprehensive. For example: 1. Promote your new album release via digital music samples, online videos, and through an email newsletter. Continue to support the release via social media. 2. Time your live tours around your new release and include new songs in your sets. Promote the album during tours, either through direct sales at the shows or via a flyer that includes ordering information and web links. Also have relevant merchandise (stickers, t-shirts, previous albums, etc.) available at your shows. 3. Create a digital media kit with artist backgrounders and interviews, photos, and indepth information about your new release and get it into the hands of DJs and bluegrass music industry professionals. 64 4. Stay active and visible in the IBMA. Participate in the World of Bluegrass (September 23 through October 3 in Raleigh, NC) to learn and make contacts through networking. We hope you found this 4-part tutorial, Getting Your Music to Market, helpful. 65 #82 This month, I’d like to examine something that is likely to have a big impact on your marketing next year. I can sum it up in one word: mobile. Let’s start with a few basics. Today, 84 percent of American adults use the Internet, according to the Pew Research Center. Older adults lag behind younger adults in Internet usage; still, 58 percent of senior citizens use the Internet. Despite the fact that people in rural areas are less likely than those in urban and suburban areas to use the Internet, 78 percent of rural residents are online. Nearly two-thirds of Americans own a smartphone (64 percent), “and for many these devices are a key entry point to the online world,” reports Pew. According to eMarketer, U.S. adults spend close to 3 hours per day on mobile devices doing non-voice activities. About 1-1/2 hours of that time is spent on mobile phones. What are consumers doing with mobile devices other than talking and sending text messages? Obviously, they are accessing the Internet, but they are also making extensive use of apps. In fact, in January 2015, comScore found that time spent with mobile applications actually exceeded time spent accessing the Internet from desktop computers. comSore reported that 43 percent of adults’ digital time in March 2015 was spent using smartphone applications. Another study by Flurry indicated 90 percent of mobile minutes in June 2015 were spent on apps. By the end of this year, eMarketer predicts mobile will account for over 50 percent of total digital ad spending, increasing to $30.45 billion from $19.5 billion in 2014. According to eMarketer, the shift to mobile ad spending is the result of consumer demand. “Brands and marketers continue to see increased value in mobile advertising to reach consumers,” said eMarketer analyst Martin Utreras. “Some of the shift is happening organically from digital ad spending dollars, but also we see additional dollars moving from traditional media and new money coming from local advertising and small businesses.” Clearly, marketers are beginning to emphasize mobile marketing as an integral part of their marketing strategy. These facts set the stage for the increasingly mobile manner in which consumers live their lives. “Going mobile” has become the mantra of young and old. Just about everything – communicating with friends and family, listening to music, watching videos, purchasing products, and more – takes place on a mobile device. It is reasonable to assume that the adoption and increased usage of mobile devices will continue to be strong in 2016. Next time, we’ll look at what you, as a bluegrass marketer, can do to take full advantage of mobile. 66 #83 Last time, I shared numerous statistics with you about the rapid adoption and increasing usage of mobile devices. Now let’s take a look at how you, as a bluegrass marketer, can take full advantage of the mobile environment. For starters, you should make sure that your website is mobile-friendly. This is essential for two reasons: First, more and more consumers are accessing the Web via phones and tablets, which display websites differently. If your website is not built using “responsive design,” which can accommodate multiple devices, your website will be ineffective and you will alienate prospects and customers. Second, search engines such as Google favor mobilefriendly sites. Last April, for example, Google announced that websites fully optimized for mobile platforms would rank higher in search results. Next, you should begin to incorporate mobile marketing techniques into your marketing strategy for 2016. According to the Mobile Marketing Association (MMA), there are at least six specific areas in which mobile marketing can be highly effective. The MMA shares several successful campaigns from each of these areas on its website. I’ve outlined these six areas here: 1. Personalization Mobile devices are considered individual and personal, so you can speak to customers on a one-to-one basis and provide personalized content for each individual. Mobile marketing technology makes highly relevant dynamic personalization possible. 2. Location-based Advertising Effective advertising has always been concerned with “reaching the right person at the right time with the right message.” Mobile marketing enables you to take that one step further, using an individual’s identified location as part of the advertising mix. With location-based advertising, you can actually reach out to a prospect who is near your retail location and make a special offer to create instant demand. 3. Always On Mobile devices are an integral part of the consumer’s life. As such, they can be used to provide “always on” entertainment and information. You can use either existing mobile technologies or develop your own application to break through to consumers with an exclusive and engaging brand experience. 4. Campaign Engagement One interesting aspect of mobile marketing is the ability it gives you to create a cross-screen campaign. A mobile device can be the in-hand connection for a campaign that might extend across numerous media and devices, creating a single, central point of engagement. 67 5. Mobile Social Social media becomes even more powerful when coupled with mobile marketing, primarily because it is so easy to share using a mobile device. That’s why “mobile social” is growing dramatically. With it, you have the ability to take advantage of existing and new social media networks, creating compelling shorter content that will be shared by your customers. 6. The Internet of Things The mobile device will be at the heart of the emerging “Internet of Things.” On the horizon are new products and services that actually become conduits for messages and brand experiences. How will you be able to take advantage of this brave new marketing world? Now is the time to think about the ways you can use the power of mobile marketing next year. 68 #84 Are you using video to market your products or services? If not, you could be missing out on a very popular form of media. Cisco, one of the world’s leading networking companies, offers this remarkable statistic: In 2014, video over the Internet accounted for 67 percent of all global Internet traffic, but by 2019, video will represent 80 percent of all traffic and 72 percent of all mobile traffic. A 2014 study of online adults by Pew Research Center found that 63 percent of adults use YouTube, Google’s video platform. That makes YouTube the second most popular social networking site behind Facebook. Today, virtually every major news and entertainment website includes video. Many blogs and emails have embedded videos. Videos are among the highest rated communications on social networks. Advertisers large and small are integrating online video into their marketing programs; in fact, some large marketers use online video as teasers and follow-ups to major television advertising campaigns. There are even cases of marketers who choose to promote products exclusively via online video. Consumers expect video to be part of their online experience. Video quality has dramatically improved; as a result, video usage is commonplace across all devices, including smartphones and tablets. From the perspective of marketers, video is very effective. According to a recent study by market research firm Ascend2, 85 percent of companies said video marketing was very successful or somewhat successful in achieving marketing objectives. The leading objectives for a video marketing strategy were, in order of popularity, to increase brand awareness, increase online engagement, improve customer education, and increase leads generated. Here are some other statistics that support the use of video marketing, as reported by Michael Litt, CEO of video marketing platform Vidyard: • • • 65 percent of viewers typically watch more than three-fourths of a given video 70 percent of marketing professionals say video converts better than any other medium Adding video to an email campaign can increase click-through rates by up to 96 percent. According to Litt, “Compelling video content helps lure your audience and can also be a great way to bring new prospects into your story. Effective video content is much more likely to be shared by your audience than a traditional e-book or white paper, giving you the opportunity to expand your reach and build new relationships through the power of engaging content. … 69 “In addition to driving engagement, video offers a number of ways to bring people into your sales funnel and qualify them as potential buyers. Adding an email gate to the start of your video, or a lead collection form to the end allows marketers to capture new leads, capitalizing on the time when they are most engaged with your brand and messaging.” So as a bluegrass marketer, just how can you make the most effective use of video marketing? That’s what I’ll talk about next time. 70 #85 Last time, I offered some compelling evidence about the effectiveness of video marketing. Now let’s talk about how you, as a bluegrass marketer, can use it. When you think about it, video marketing and bluegrass should be a perfect marriage. What better way for a bluegrass performer to promote a new CD than with a video clip of a live or studio performance? For festival promoters, video of past festivals can convey the atmosphere and excitement of an event to prospective ticket buyers. If you sell bluegrass instruments, you can use video to offer up-close demos and even provide video instruction. The good news is you don’t have to spend a ton of money on video production. Yes, it’s true that top-notch online videos can be as elaborate as TV commercials, but low-cost videos can be just as effective if they are authentic and genuine. Sujan Patel writes for Entrepreneur: “Spending $489 gets you a basic video recording equipment bundle, plus one year of the WeVideo business plan. WeVideo offers custom branding, screen recording, advanced editing features, voiceover and more for one of the best editing values available, making it an ideal option for those without in-house video teams. “That said, as important as I think video is to modern marketing campaigns, resist the urge to overspend on videos. You don’t need $10,000 and professional actors to make a brand video that sticks. This isn’t Hollywood, and you’re not trying to win an Oscar. Start by putting yourself and your staff in front of the camera and use the simple videos you’re able to create this way to build rapport and trust with your viewers.” You can also be quite innovative with video. For example, marketers are now experimenting with 360-degree video to showcase events and develop music videos. Read this fascinating article about 360-degree video, which includes numerous examples. In terms of a video marketing strategy, Michael Litt, CEO of video marketing platform Vidyard, has some good advice. He suggests that you “figure out what stories you want to tell” and “show people not just products.” Litt writes, “Fun campaign videos can bring pain points to life and humanize your brand. Product demo videos can quickly educate audiences and build trust in your offers. Interviews with thought leaders and customers can inspire audiences and quickly build trust in not only what you do but also why you do it.” Litt also recommends keeping videos short because “viewers have short attention spans.” Videos of less than five minutes are optimum. A key aspect of video marketing is what you might call attracting “the right eyeballs.” If you invest in video marketing, you want to be sure your video is viewed by the right audience. An ideal choice, of course, is Bluegrass Today, which precisely targets your audience. You can easily embed video clips into banner ads on Bluegrass Today, and link directly to a longer video on your website. This way, you’ll be combining video, a highly popular medium, video, with 71 the bluegrass industry’s leading online publication. Then supplement your Bluegrass Today banners by linking to and promoting your video on your website, Facebook, and YouTube. Michael Litt advises, “Measuring performance is the only way to know whether your videos are successful. Don’t settle for vanity metrics such as the number of views. That won’t lead to more leads and deals. Collect data on how your videos are watched and how viewers engage with them. Check the duration of views, repeat views and drop-off rates. That data helps you know whether your videos are working. Even more powerful: Track those stats down to the individual viewer.” Video analytics tools are available to perform this kind of analysis. For more assistance with video marketing, a free white paper called “17 Video Marketing Tips for a Winning Strategy” is available from Reelseo. 72 #86 A Special 4-Part Tutorial: How to Promote Your Bluegrass Music Festival Traditionally, bluegrass festival season really ramps up in the Spring. Experienced festival promoters recognize, however, that festival planning takes place well in advance – so it isn’t too early to think about upcoming festivals. Because festivals and concerts are such an essential part of the bluegrass experience, we’re devoting the next four issues of our email newsletter to a special 4-part tutorial, “How to Promote Your Bluegrass Music Festival.” Part 1: Ground Rules Promoting a bluegrass music festival, like promoting any live event, depends on lots of elements coming together in just the right way. The first consideration, of course, is the nature of the festival itself. A long-standing festival already has a reputation and following, so you’ve probably learned a lot about what works well in terms of planning and promotion; a new festival, however, typically requires much more careful consideration from start to finish. Whether the festival is old or new, logistics and details should be at the top of your “to do” list. Choosing a location and dates, booking talent, establishing an operating budget, and setting ticket prices all need to be addressed early, as much as 4 to 6 months in advance. Check out this helpful detailed “sequence of events” checklist provided by ConcertPromotions.com. In planning the event, it’s always a good idea to make note of any other bluegrass festivals or concerts occurring within your geographic area and selected timeframe to avoid competing for the same audience. Another aspect of festival planning is customer service. Nowadays, festival-goers expect a level of service that is different from the past. For example, prospective attendees typically want to find all the information they need about a festival online via a mobile-friendly website (with a logical URL) and through social media. If festival-goers have questions, they’ll want them answered promptly via website FAQs, email, online chat, or phone. Purchasing tickets has also changed; the majority of your audience will probably want to buy and print their tickets online, so you need to offer this capability yourself or through an online ticketing service. Providing fast, responsive, courteous customer service prior to the event will make a significant difference in how prospective attendees perceive the festival – and it could directly impact ticket sales. Festival promotion is obviously crucial; remember that you are not only asking festival-goers to part with their money, you are also asking them to travel to a venue and spend some significant time there. This is a much harder sale to make than selling a CD. The good news is bluegrass fans are very willing to travel for a festival – they enjoy both the live music and camaraderie that only a festival can provide. The better news is that gas prices remain low – a factor that could help make the upcoming festival season one of the best ever. Low gas prices will encourage all fans, even those with gas-guzzling RVs and trucks, to make the trip! 73 Since you know exactly when and where your festival will occur, you can develop a very precise schedule of marketing and promotional support activities. So how do you make the best use of marketing to promote your festival? That’s what we’ll examine in the next three parts. 74 #87 A Special 4-Part Tutorial: How to Promote Your Bluegrass Music Festival In Part 1, we discussed some basic “ground rules” for promoting bluegrass music festivals. Part 2: Shout It Out Getting the word out about your bluegrass music festival is essential, but how you “shout it out” depends on the audience you are trying to reach. Your most important audience is previous festival attendees – they are the core of your customer base. Ideally, you have collected their emails and have been occasionally keeping in touch with them. This is the group who should receive “advance notice” emails from you about the upcoming festival; in fact, it usually makes sense to send a series of emails to these customers, spaced out over a period of weeks, prior to the festival. Also engage these past attendees via social media (more about that in Part 3). Encourage past attendees to sign up early (you might even provide a modest discount on tickets to recognize their relationship with you). And use past attendees as a kind of sales force by asking them to tell family and friends about the festival. Another important audience is media and industry contacts. These folks need special treatment; they will want to know the details of your festival in an organized format - think "who, what, when, where, why." Most media and industry contacts will welcome a basic press release about the festival, but they will also appreciate gaining access to an online media kit. A typical media kit includes the press release, along with details about the line-up of talent, including biographies and photos, facts about the venue, festival logos, and photos/videos of past festivals. Also be sure that your festival is listed in the Festival Section on Bluegrass Today and on local community calendars of events. Personal relationship-building with media and industry contacts will pay you back as well: Local radio personalities, for example, can help provide some on-air publicity for your festival, often times for even a small investment. Speak with the DJ of your favorite local bluegrass program, and/or the advertising department at your local radio station for ideas and rates. Remember, everyone wants free publicity, but paid advertisers almost always receive first consideration and often times are bonused additional spots and on-air mentions. Of course, you will also want to make bluegrass fans who haven’t attended in the past aware of the festival. This is where three specific strategies come to mind: 1. Utilize Bluegrass Today. At the risk of sounding self-serving, Bluegrass Today is the ideal advertising vehicle for a bluegrass festival. Not only does it perfectly target bluegrass fans, you can be very precise with your advertising. Using geo-targeted ads by radius, you can actually set a radius for your online advertising and dramatically increase your reach and efficiency. 75 2. Take advantage of festival talent. Each of the performing artists appearing at your festival has a fan base. These fans will surely want to know where they can see their favorite artist, so be sure to get your talent to fully support your marketing efforts. Provide them with creative materials they can use to promote the festival via their own means. Encourage them to be “festival ambassadors” and work together with you to make the festival a success. 3. Work your local market. Although some very well known festivals can draw a national crowd, most bluegrass festivals center around a specific geographic area, usually within a 200 to 400-mile radius of the festival location. Concentrate your primary marketing activities here, saturating local newspapers, radio, and television stations, contacting relevant bloggers and websites, and distributing posters and flyers to appropriate retail and public locations. Next time, we’ll talk about specific ways to engage your audience. 76 #88 A Special 4-Part Tutorial: How to Promote Your Bluegrass Music Festival In Part 2, we discussed some ways you could reach specific audiences. Part 3: Engaging Your Audience Last time, we discussed several good methods of reaching your target audience. Now let’s talk about engaging them. Engaging an audience means captivating them – getting them excited and involved so they just can’t wait until your festival takes place. Engagement occurs when you convey a truly compelling message using the most appropriate media. Let’s start with your message. There are two parts to any convincing promotional message, the rational and the emotional, but it’s the emotional part that usually creates the most engagement. So think about this: How can you reinforce the emotional appeal of your bluegrass festival in the mind of the prospective attendee? You want that person to see, hear, feel, and experience the joy and fun of attending the festival. Chances are this will best be conveyed using visual images – photos – and, ideally, sound and motion -- videos. Videos of performing artists who will be appearing at the festival are good, but videos of past festivals are even better. Videos that show the venue, the performers, and attendees having lots of fun socializing, dancing, singing, playing instruments, eating, and clapping help capture the experience and allow prospective attendees to visualize it. The point is to reinforce, on an emotional level, why someone would want to attend your festival. Videos can be posted on YouTube and then embedded or linked via various media. Show videos on your website, on your Facebook page, and on other social media. Use visually oriented social media, such as Instagram and Pinterest, to share photos and videos and encourage your fans and followers to pass them along. Remember, social media is ideally suited for engaging an audience, and nothing does it better than visual imagery. A very innovative way to employ social media is to stage a “takeover” of your festival account by one or more performing artists. Dave Graham, CEO of BottleRock Napa Valley, a large music festival, tells Inc. that social media takeovers “bridge the gap between event attendees and their favorite artists.” Graham also arranges for artists performing at the festival to give tickets away to their loyal fans. For other ideas regarding how to make the best use of social media, check out “The Social Media Checklist for Concert Promotion,” provided by Postano. When it comes to advertising, you can embed video clips in online advertising placed on Bluegrass Today and link the ad to videos that appear on your festival website. Bluegrass Today is a great place to engage your audience because you know every single site visitor has an interest in bluegrass music. 77 Another method to engage your audience is through your festival sponsors. Last time we discussed taking advantage of the fan base of the performing artists who will appear at your festival, but sponsors offer you an additional opportunity for audience engagement. Very often, sponsors have strong relationships with consumers that already pre-dispose them to engagement. Not only that, sponsors are often very willing to boost your marketing with their own investment in promotion and social media engagement. A final way to encourage audience engagement: Be sure to solicit support from the greater community surrounding your festival venue. Remember that festival-goers are also consumers who could spend money at local hotels, restaurants, and retailers. All of these businesses should want to help you promote your festival because it could lead to revenue for them as well. 78 #89 A Special 4-Part Tutorial: How to Promote Your Bluegrass Music Festival Part 4: Putting It All Together In Part 1, we covered some of the basics in promoting a festival, including logistics, details, and customer service. Part 2 discussed how to reach three specific audiences – past festival attendees, media/industry contacts, and prospective attendees. In Part 3, we discussed some key ways to engage your audience. Something that should be clear about festival promotion after reading through this tutorial is that, while the festival itself takes place at a particular point in time, festival promotion should be viewed as a continuum. Most festival promoters realize their next festival is only as good as the previous one, and success builds upon success. As a result, it makes sense to adopt a “before, during, and after” strategy when marketing a festival. You need to promote the festival before it occurs, capture marketing assets during the festival itself, and find ways to keep attendees engaged afterwards. It makes good sense to build a comprehensive promotional plan to support your festival. Typically, active festival promotion should begin at least 6 to 8 weeks in advance of the date. Set up your ticket ordering process and be sure you are ready to take orders via all channels: online, by phone, by mail, and via agents or other physical locations. Be sure to list your festival in the Bluegrass Today Events Directory. Ideally, past experience will tell you what the geographic radius is for your festival. Depending on the drawing power of the talent that’s appearing and the location itself, your target audience could be within a 200, 300, or even 400-mile radius. Once you decide on a radius, your plan should include the following: 1. Announcement/press release about the festival, highlighting the talent and the venue, sent to all newspapers, television stations, and radio stations in your geographic radius. Also contact influential bloggers in the area. Make a special effort to get radio stations to publicize the festival to their listeners. Provide an online media kit. Offer free admission to all media contacts. 2. Direct mail/email to past festival attendees. If possible, offer a discount to past attendees. Also ask them to pass along information about the festival to friends and family via email and through social media. 3. Geo-targeted ads on Bluegrass Today, the leading online medium for bluegrass fans. With geo-targeting by radius, you can set a radius for your online advertising and dramatically increase your reach and efficiency. 4. Physical presence within 200 miles of the festival via posters and flyers. 5. Online promotion via your website, Facebook page, Twitter, YouTube, Instagram, and any other social media for which you have built a following. 6. Partner promotion: Be sure to get your festival sponsors and your talent involved in promoting the festival. Encourage them to use their own mailing lists, websites, and 79 social media to get the word out. Sponsors and talent have a vested interest in making the festival a success, so ask them for help. In fact, music festivals have a positive impact on sponsors, reports iMedia Connection: “According to eMarketer, one in three concertgoers said they remembered the show partner of the last live event they attended, and 44 percent say music partnerships are the factor that most likely increases their positive feelings toward a sponsor brand -- higher than the percentage who said the same for sporting events, TV shows, or award shows.” As the festival date gets closer, you should intensify your promotional schedule until it reaches its height about 2 weeks before the festival. Within 2 weeks of the festival date, if budget permits, buy radio time on stations within your radius that play bluegrass music. This would also be a good time to attempt to secure media coverage of the talent coming to town, especially if you can arrange for interviews with well-known personalities. We hope you found this tutorial about promoting bluegrass music festivals helpful. 80 About Bluegrass Today Bluegrass Today® is the first online destination within the bluegrass music world to combine extensive news coverage with the most useful aspects of the social media revolution. About “Sound Marketing for Bluegrass” Bluegrass Today publishes “Sound Marketing for Bluegrass,” a twice monthly email newsletter especially for bluegrass marketers. This informative newsletter offers marketing wisdom about branding, creative, testing, analysis, social media, online advertising, and more. This eBook is a compilation of the newsletters from 2014 and 2015. “Sound Marketing for Bluegrass” is written exclusively for Bluegrass Today by Barry Silverstein, a nationally known branding and Internet marketing expert. Barry teaches an online branding course and is the author of numerous branding and marketing books and eGuides. You can learn more about him here: https://www.linkedin.com/in/barrysilversteinasheville 81