70% of Business Comes From WOM
WOM is “Word of Mouth.” This statistic isn’t specific to the music industry. What I’m about to write is an idea and I’m curious to hear your feedback and thoughts on it.
If 70% of business comes from WOM, then only 30% comes from other areas of marketing. Look at your marketing budget. Actually, I know that you don’t have a marketing budget because this is the music business. Look at how much you spent on marketing last year or try to quantify how much energy you put into marketing. What percentage of that time, energy and money went into servicing your existing fan base and empowering them? These are the people who generate your WOM marketing… and therefore 70% of your new customers.
Now look at how much went into trying to find new fans in other ways. I don’t know your specific artist, but I’m going to guess if you’re like me, you put a lot of energy into “getting new fans” through internet marketing, posters, radio and publicity.
I think we may have it all wrong though. I think we need to take a lesson from Zappos, Crocs and Google and put all of the marketing energy into the current customer base. Blow them away with service and experience. Your current fan base is where the momentum is already. Give them a reason for to talk to their friends about your band. Focus on the fact that 70% of your new fans are going to come from the existing fan base. How does that change things? What does this look like and mean for an artist business?