Tag Archives: music industry

Should Social Media Have a Place?

This is a question that seems to pop up a lot: Is there a place for social media in a “boring” business like insurance, plumbing or trucking?

While I do believe nearly any business can benefit from some social media presence, we do need to take a rational look as to whether it should really be a priority in the marketing mix for a “boring” business.

Are you a conversational business?

Let’s re-frame this word “boring” and put it this way: “Do people normally talk about you over the dinner table or at a party?” If the answer is “yes,” then social media should probably be a top priority for you. If it’s no … well, look at your budget options carefully to see where social media might fit in.

There have been a number of studies out there about the “conversationability” of a business and the connection to social media success. Not surprisingly, there is a hierarchy of conversationability – more remarkable products like sports teams and Hollywood movies are talked about twice as much as less remarkable brands like banks and over-the-counter medicine.

In a study of organic Facebook reach conducted by AgoraPulse, the company found that, across 8,000 companies, there was definitely a pecking order of conversationability. Organic reach is the content that is naturally connecting to customers without any promotion. Here is a list of the industry categories with the highest organic reach:

Amateur sports teams

Farming/agriculture

Fashion designer

Professional athletes

Music industry

Building products

Professional sports teams

Photographers

Zoos and animal-related businesses

Television programs

And here are the industries with the lowest Facebook organic reach:

Appliances

Books

Telecommunications

Household supplies

Tools and equipment

Phone/tablet

Chef

Musical instruments

Industrials

Transportation and freight

There is an implicit hierarchy of conversation popularity across industries. If you are in sports, entertainment or any of the other industries in the first list, there is an implied, fervent fascination with your content. There is something that people find naturally remarkable about you that gets rewarded with content transmission. If you’re in the second list or somewhere in between, you have less of an organic opportunity for social sharing … not necessarily because of the job you’re doing with your content, but because your products just aren’t naturally conversational.

Are you conversational … or could you be?

There is another option. If you’re in an industry with relatively low organic reach, can you become remarkable? It doesn’t come easily or cheaply, but it is possible, as evidenced by the series of “Will It Blend?” videos produced by BlendTec blenders. A blender isn’t the most remarkable product, but the brand made it so through its wacky challenge … ripping apart the most unusual things (golf balls, an Apple watch) in its powerful blender.

One of my favorite examples of a company overcoming a low place on the remarkability continuum is the Chipotle restaurant chain, which sells burritos and tacos—nearly commodity products in the food business.

Chipotle began producing two-minute animated mini-movies telling a story of the restaurant as an oasis of natural goodness in an otherwise bleak and dystopian world of processed food. The first episode, a clay animation video with a soundtrack of Willie Nelson singing a Coldplay song, was extraordinarily popular with Chipotle’s youthful audience and garnered nearly 9 million views in a year. The next year, the company went a step further by creating a free smartphone game to go with a new video. It had 4 million views in the first week.

Reality check: All this was created to sell burritos. It wasn’t easy to become a conversational brand. It wasn’t cheap, either. But it worked, and Chipotle’s stock and market share soared. That’s the nice thing about remarkability: You can apply it to almost anything.

The key to finding your remarkability is to think about what makes you surprising, interesting, or novel. In my book Social Media Explained, I suggest that marketing strategy needs to begin by finishing this sentence: “Only we …” That’s a tough task, but it’s the essential path to discovering your remarkability.

In the case of Chipotle, the “only we” was creating a story of health and sustainability, a story far bigger than mere burritos and tacos. They broke a pattern of what people expected from fast food.

But wait…there’s more

At this point, you might be thinking, “My business is boring and unremarkable and I’m not about to be a Blend-Tec or Chipotle. Why would I participate in social media?”

There are a lot of reasons, and here are a few:

Public relations – It’s likely that some aspect of social media has to be incorporated into any plan for media relations, crisis planning, event planning and community relations.

Word-of-mouth advocacy – Social media opens up an entirely new way of identifying and nurturing powerful online advocates for your brand.

Cost savings – Social media represents an extremely cost-effective communication channel. Most research shows that, in terms of many traditional measures, the results are as good, or better, than paid advertising. There are many opportunities to leverage existing content and marketing materials across vast new audiences.

Customer service – You may not have a choice about this really. Social media has become a very popular way to complain about poor products and services. It’s the new 800 number. Are you going to answer the call?

HR and recruiting – Social media, and particularly LinkedIn, has transformed the human resources function. One professional told me that a candidate’s “social media footprint” was more important today than a resume! Whether you are trying to find talent or be found, social media is a critical piece of the puzzle.

Internal process improvement – Tapping into the free tools and information on the web can help unleash employee productivity, collaboration and problem-solving.

Lead generation – Even setting up a simple Twitter search can help you find customers looking for your products and services…even if you’re boring.

Reputation management – The largest brands have social media “war rooms” set up so they can monitor conversations and sentiment about their products and brands in real time, at any spot in the world. Today, you need to be tuned in to the conversations and respond quickly or risk problems going viral.

Research and development – An active customer community can be a gold mine of new ideas and suggestions for products and innovations.

SearchGoogle is now showing tweets more prominently in search results. And you are just as likely to be discovered via your LinkedIn profile, blog post or video as on a website. An entire generation is finding businesses and services through Facebook search.

Social proof – In a world of overwhelming information density, we may look to clues from others to make a decision. How many positive reviews do you have? How many “likes” or followers do you have? It might sound weird, but people make decisions to connect to a company based on these badges of social proof (there is an entire chapter on the connection between social proof and content success in my book The Content Code).

The Trade Show Dilemma – Have you ever had to sit at a booth during a large industry trade show? Why did you do it? Because if we weren’t there, people would think something was wrong. We would be ostentatiously absent. In this day and age, not being on Facebook or Twitter sends the same message. It shows you “don’t get it.”

The Net Generation – Your next pool of employees, customers and competitors prefer to use the social web over any other form of communication. You might enjoy reading a paper copy of the Wall Street Journal each morning, or even looking at an online version of your favorite news site. But nearly half of Americans under the age of 21 cite Facebook as their primary source of news. The social web is where a generation is going to connect, learn and discover. Ignore this at your peril!

So the short answer is “yes.” There is a place for social media, even in a boring business, but your “conversationability” may influence how much effort you put into it. Comments?

This article was first posted on business2community.com

‘Age of the Customer’ Demands Change

The music industry is in chaos. It’s a dinosaur stuck in the tar of old vinyl. Musicians are no longer knocking on record labels’ doors, asking to get their album out there. Consumers are no longer buying their music from record stores. And, with Taylor Swift withdrawing her entire catalog from Spotify, things get even crazier.

The Age of the Customer continues. And if you don’t acknowledge this — whether in music or in just about every other industry, including insurance — you could end up loved as much as a set of tangled headphones.

You Really Got a Hold on Me
In a time not so long ago, musicians had no choice but to go through record labels to even think about reaching their audience. The industry had a three-step process:

  1. Song creation
  2. Marketing
  3. Distribution

This meant artists created their album with the record label’s supervision; the record label then marketed it via in-house or through a third party; the radio stations then played it; and then, finally, customers could buy it at their local record stores. Thus was created a multi-layered model that greatly benefited the record labels.

So what happened to this model?

They Say You Want a Revolution
The Internet happened. By the late ‘90s, when the Internet started to catch fire, people began realizing its potential power, such as the ability to digitalize entire music catalogs. This ultimately led to the birth of music piracy, which drastically cut into record labels’ pockets, creating a rippling effect felt throughout music – within the industry and among music lovers.

But when the iPod was introduced in 2001 it shattered the traditional model of the music industry. Musicians could now bypass all the old steps and start putting out their own music through digital sites like iTunes, opposing music piracy and giving royalties back to artists. Then, fans starting getting into the act.

As record labels worked to stay relevant, they had to offer artists new partnerships, such as 360° deals. A 360° deal assured artists a share from their music, concerts, merchandising, publishing and licensing income – ultimately creating a five-step model:

  1. Recorded music
  2. Merchandising
  3. Fan sites and ticketing
  4. Broadcast and digital rights management
  5. Sponsorship and management

Any Way You Want It
Enter the Age of the Customer. To combat piracy, stream-based cloud services began to emerge (see news on Spotify and Beats Music). Consumers now have the option to listen to any of their favorite songs, on multiple platforms, any time they want – for free even, if you’re willing to put up with commercials.

So now consumers can choose to pay to download a song, buy CDs or records, stream their favorite radio stations or stream their favorite music without breaking the law. This, once again, is shattering the music industry’s business model.

And, boy, the times they are a-changin’. Consumers now connect globally to their favorite bands through the Internet and bypass exclusive record label channels. The majority of consumers don’t buy albums, they download songs.

There’s been a greater attendance at concerts (Live Nation’s ticket sales are up 17%) . Fans seem to be more loyal. Consumers have it made right now, and things seem to be getting even better.

Spotify, the online streaming service, started contacting record labels for a possible negotiation. The labels offered a share in their company for a band’s catalog. The big boys started jumping on board, giving listeners gold record bands, such as Led Zeppelin and Pink Floyd – for free.

And the record labels are happy, because it’s the first time someone has offered them equity for their band’s music. Which means that, if Spotify goes public, well, it’s more money for them. Everybody wins.

However, not everyone is happy with the online streaming service, especially Taylor Swift. After “trying” her music out on Spotify, she decided it wasn’t the best medium for her music, so she pulled her catalog from the streaming service. She also believed her music wasn’t valued as much, because Spotify has no regulations on who gets what – and lack of earned royalties.

It’s an interesting situation right now. With artists pulling music from Spotify (even Jason Aldean recently joined the Swift bandwagon), the music industry must ask itself – is online music streaming the future of music mediums?

Ch-Ch-Ch-Changes
In today’s market, technology has placed the ball back in the consumer’s court. The music industry is reeling and desperately trying to get back in the game, but the game keeps changing. Technology is transforming everything, we all know, but how is your company preparing for the inevitable? Are you creating a customer-centric culture that embraces the new? Or are you waiting to see how your competitors fare?