Heart & Soul
“We’re OK with churn,” he says. “[It] is part of the landscape. Just because someone gets off your e-mail list doesn’t mean they won’t go to a show.”
Still, Live Nation takes every precaution to encourage individuals not to opt out. Frady says building trust through regular e-mail communications, establishing good relationships with Internet service providers and producing communications that are highly targeted and relevant to recipients’ interests are all essential to reducing database churn.
“Our opt-out rates are, we think, impressively low,” says Frady, another improvement stemming from the tighter targeting of e-mail content to customers’ interests and the contact frequency cap. With the launch of Live Nation’s online preference center, he anticipates an even greater ability to keep the churn rate under control.
The ‘Holy Grail’ of Database Marketing
Frady recommends marketers seeking to sing from the same songbook as Live Nation consider behavioral data as a way to refine their targeting. He believes that knowing something as simple as an individual’s musical tastes is an ideal way to understand what really makes customers tick.
“Behavioral data is sort of the holy grail of database marketing—to know what motivates somebody or what interests somebody is a real key indicator to telling how well your product is going to do,” he says. “So if you know that somebody is interested in rock music, that’s different than if they’re interested in classical music … And if you add a demographic layer on top of that, you get a pretty good indication of the life stage and lifestyle of a customer.”
Data from Live Nation’s customer file is available for list rental through Irvine, Calif.-based list and data firm Carney Direct Marketing. Postal addresses for Live Nation customers can be rented, though e-mail addresses cannot.
Peter Carney, Carney Direct Marketing’s founder and CEO, describes the Live Nation file as a dynamic “transactional database” enhanced with demographic information. It includes—among other things—data about purchase frequency, purchase amounts and the categories of events and/or musical genres customers’ past purchases have encapsulated.