With the initial summary of findings that stemmed from its Country Music Consumer Segmentation Study, CMAcast new light into the interests and resources of the genre’s most potentially rewarding fan base, identified as Prime Prospects. That presentation began a process that continues as this research, mandated by CMA’s mission to serve the music industry, deepens and expands.
The latest information gathered by the Leo Burnett Company and The Right Brain Consumer Consulting builds on data previously summarized in CMA Close Up (April/May, June/July, Aug./Sept.) and made available to CMA members at My.CMAworld.com. In June, a survey was undertaken by telephone and online of 712 fans of Country Music, 18-54, grouped in four categories that represent the most promising demographics for current and potential growth: CountryPhiles (passionate fans of Country Music), MusicPhiles (dedicated fans of Country as well as other genres), Today’s Traditional (prospective CountryPhiles who haven’t yet monetized their commitment significantly) and Pop Country (prospective MusicPhiles whose Country tastes lean toward the pop side). A PowerPoint presentation of the Prime Prospect Study is also posted at My.CMAworld.com.
A key purpose of this new round of research was to gauge the impact of the current economy on the behavior of fans in each category. Results indicate that the core Country Music fan segments are less likely to monetize their support for the genre than they would have been a year ago; in effect, many have migrated from the CountryPhile and MusicPhile groups into the less responsive categories that fall under the heading of Low-Funding Fans. At the same time, the size of the Country fan base has stayed the same or grown slightly since 2008.
The challenge of keeping these fans engaged even in uncertain times guided the formulation of a series of questions posed in the June survey. These questions, followed by multiple-choice answers, yielded important insights into the lives of today’s Country fan:
How would you describe the state of the nation’s economy these days?
Slightly more than half the polled fans chose “not so good” but predicted that better times lay ahead and 33 percent chose “poor.” More detailed information emerged as these answers were broken down according by the category of the respondents. For example, fans of Pop Country assessed the nation’s economic prospects less severely than those in other categories, while CountryPhiles without home Internet access were by far more negative.
How would you describe the state of your own personal finances these days?
Nine out of 10 Prime Prospects regard today’s economic conditions as negative, while 32 percent chose "fair" and 15 percent chose "poor." As for the more engaged CountryPhile segment, those quizzed by phone were the predominant demographic in both the smaller “excellent” and “poor” categories. About six percent seem to be holding their own while 25 percent struggle with more difficult financial challenges.
Versus 12 months ago, how would you describe your household financial situation?
Only 16 percent chose the “better” option, with 44 percent opting for “same” and 40 percent for “worse.” CountryPhiles were the dominant demographic among those who described their status as “better” than in 2008.
Looking ahead 12 months, how do you see your household financial situation?
Respondents overall were hopeful about their prospects, choosing “better” or “same” in far greater numbers than “worse.” Once again, CountryPhiles polled by phone constituted the most optimistic demographic.
In the past 12 months, have you been spending about as much as you did before, spending more or cutting back?
Respondents as a whole admitted to cutting back on their spending over the previous year, but here too the CountryPhiles emerged as the most potentially responsive group; though they cut down on their expenses, they did so less extensively than other Prime Prospect segments.
In the past 12 months, have you been spending about as much as you did before on entertainment, spending more or cutting back?
The patterns identified by the previous question are mirrored in answers to this query too: Overall spending on entertainment fell, with two out of three fans admitting to spending less in a wide variety of categories, including music and ticket purchases, than they had been spending a year earlier. But there were fewer declines among CountryPhiles than other Prime Prospects, particularly among those queried online rather than by phone.
For deeper insight into these trends, researchers asked respondents to break their spending patterns down into 28 specific areas. Not surprisingly, the results document significant reductions particularly in discretionary areas such as luxury items, travel, dining out and electronics, while expenditures stayed steady on cell phones, gas, Internet access and other areas considered essential — including some entertainment channels such as cable TV and satellite radio. Though overall spending is down, the impact on the Country Music industry is mixed. Like other consumers of music in general and Country Music specifically, CountryPhiles do trend downward, though less precipitously.
Similarly, when queried about certain leisure activities, respondents indicated that they were pursuing or intended to pursue those that were free as much or more than they had in the previous year while cutting down on going to or renting movies, subscribing to magazines and other pleasures that come with a price tag. Those free activities included no-cost downloads of Country Music, a fact that leads to another area of exploration in the CMA study.
The 2008 CMA BrandProspect Segmentation Study determined that home Internet use varied widely throughout the entire Prime Prospect sample, but that it skewed low among CountryPhiles. Still, nine out of 10 Country fans go online at various times and locations, mostly via high-speed access, and within the CountryPhile segment that number is four out of five. Equally important, the Core Fans — those most likely to monetize their interest in the genre — are the most inclined within the Country Music fan base to access information online. And within that group, CountryPhiles with regular online access lead the pack in frequency of Internet use, especially in visits to Country-devoted destinations.
The nature of these online excursions was examined as well. About two out of five Prime Prospects that are able to get online will search for Country Music-related content each month; one in five do so weekly. More than nine in 10 of all Prime Prospects do access the Internet somewhere and sometimes. Videos and online radio or music samples are the most popular weekly destinations, and Country news, song lyrics and product purchases lead the list for monthly visits by Prime Prospects as a whole. Within that group, CountryPhiles index highly on using the Internet to feel more connected to their favorite artists and music as well as using online resources to enhance their expertise as Country Music aficionados, whether through checking out lyrics, catching up on concert details or purchasing downloads and merchandise. Beyond satisfying the needs of the fans who seek them out, YouTube, iTunes and radio station sites in particular also influenced their subsequent tastes and behavior.
Informed by the data gathered to support these findings, the CMA Consumer Research Committee came up with 10 concepts whose developments bear the best potential for generating revenue and/ or building a support community in the Country Music realm.
These include:
1. A Frequent Buyer Rewards Program
2. Online Country Music Information Hub
3. Direct CD Purchasing
4. Occasion-Specific Album Compilations
5. Simplified Music Downloading
6. “Go Deep into the Album” Radio Sampling Programs
7. “Crossroads” and “All-in-One” Concert Touring Packages
8. Country Concert All-in-One Combination Packages 9. Concert Bus Packages
10. Country Music Fan Online Social Network Sites
Investigation of these concepts, and in particular their mutual and interrelating influences, yielded the data that fuel the conclusions made available to CMA members in detail at My.CMAworld.com. Broadly speaking, though, two especially promising business-building opportunities involve offering financial or value-added credit for consumer loyalty and support as well as providing “inside information” about and exposure to Country Music and artists. Going deep into the album for radio playlists and implementing a "frequent buyer" plan appear to promise the greatest overall positive impact across revenue and engagement dimensions among all Prime Prospects.
The broad conclusions, however, are as important as the details in this latest round of research, as are the responses recommended by the researchers:
1. Economic downturns have had a stronger impact on Country Music Core Fans than the population at large, with the result that some have joined the “Low-Funding Fan” group whose members are less likely to spend on Country Music products. Implication: Offer consumers effective value-added products and services to keep them engaged through hard times.
2. Different segments of the Prime Prospect Country Fans behave and respond in distinctive ways. Implication: Music industry interests must be clear about which segment will be most responsive to their marketing and tailor their campaigns accordingly.
3. Most Country fans go online occasionally, though not always at home. Implication: YouTube, iTunes and radio station sites can serve as mass-marketing networks especially for CountryPhiles and MusicPhiles.
4. “Going Deep” into album tracks is a promising strategy for Country radio. Implication: When stations are reluctant to make the plunge, consider other ways of implementing this approach, including online.
5. “Crossroads” tours, mixing Country and rock headliners, and “All-in-One” package tours offer value-added appeal and other pluses. Implication: This approach will become more important for all involved parties.
6. A “Country Music Hub” can serve as a “Mall of America” for the entire Country Music fan base. Implication: To maintain and strengthen relations with consumers, different forms of this incentive can be tailored to different Prime Prospect segments.
7. “Frequent Buyer” programs can turn traditional commerce, based on product purchase, into a two-way system of rewards. Implication: How about launching a “Country Credit Card” with a points program?
8. There’s no shortage of ideas for generating revenue in changing and challenging times. Implication: Album compilations can be created for CountryPhiles, Pop Country fans and other groups; young fans can be invited to assemble in bus packages to concerts; simple downloads can stimulate novice fans to purchase more easily and frequently online … the possibilities are as open as the imaginations of the CMA membership.
An in-depth portrait of CountryPhiles and MusicPhiles as well as information on CMA Country Music Consumer Segmentation Study, CMA BrandProspect Segmentation Algorithm and CMA Prime Prospect Study are available on the CMA members-only Web site, My.CMAworld.com.
For more information on
• CMA’s consumer research study or future agendas, contact CMA (615) 263-3696 or Research@CMAworld.com
• use or integration of the Excel-based segmentation algorithm into a new or existing customer survey for information collection, contact Elizabeth Knapp (312) 220-4225 or
Elizabeth.Knapp@LeoBurnett.com
• database overlay approach to typing an existing customer database, contact Carol Foley (312) 220-4205 or Carol.Foley@LeoBurnett.com
• focus group or CMA’s consumer research study, contact Jana O'Brien (708) 383-5794 or JanaOBrien1@gmail.com
© 2009 CMA Close Up® News Service / Country Music Association®, Inc.
