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Heart & Soul

Passion for the product, segmentation savvy and a customer-centric approach make Live Nation’s direct marketing sing Bob Frady, vice president of direct marketing,Live Nation

December 2007 By Amy Syracuse
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“Your iTunes has a library file, which is a list of the artists that are in your iPod. [Our preference center] scans it and matches it to our database to find out which of your favorite artists are already in our database. You then have the option of including them or excluding them [for e-mail contact].”

—Bob Frady, vice president of direct marketing, Live Nation
Faced with increasing opt-outs and declining response rates, it can be easy for direct marketing professionals to lose heart. But not the team at Los Angeles-based Live Nation, a promoter of live concerts, music venues and festivals, owner of the House of Blues brand and operator of the Web’s largest concert search engine. Listening to the company’s Vice President of Direct Marketing Bob Frady speak about marketing activities, you get the distinct impression that “heart” drives everything Live Nation does.

“We’re not just spreadsheet jockeys; we love our product and are excited about what we sell,” says Frady. “We try to transfer our love of music and the concert experience to the customer.”

This unbridled enthusiasm—combined with sophisticated segmentation and practices that put the customer first—fuels a robust direct marketing program. Frady expects Live Nation to send out more than 8,000 campaigns for the whole of 2007, encompassing 500 million e-mail messages in 40 different U.S. markets. As a result of these efforts, the company has built a thriving customer database, increased revenue by 143 percent over 2006 and, importantly, learned some valuable lessons about cultivating relationships with today’s discriminating consumers.

Providing a Service
One of the most striking aspects of Live Nation’s direct marketing program also is one of its simplest: a genuine desire to provide the information customers want in a time frame that is useful to them.

Frady knows from personal experience that nothing is more frustrating to music lovers than missing an opportunity to see a favorite artist or band in concert because of inadequate communication. “My favorite band is the Smithereens,” he elaborates. “They were in town for a show put on by another promoter about a month ago, and I didn’t find out until I read about it in the newspaper the day after the show. That’s what we’re trying to prevent. We want to let fans know when their favorite artists are coming to town and then get them stoked.”

According to Frady, the most effective tool Live Nation has in its marketing arsenal to accomplish this task is the customer database. It houses more than 16 million names of individuals who have opted in to receive the company’s marketing communications. “The customer database allows us to reach fans of a band early in the ticket-buying process,” he says. “[It] is also used at the back end for filling in when shows might not be selling as aggressively as we want. It helps to put people in seats far more efficiently than traditional media.”
 

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