JacoBlog - Jacobs Media's Blog

Your Core 20

In a business' quest to excel, there’s often a tendency to focus on several segments of the target, from hard core fans to casual users.  But the “80:20 Rule” has always pointed to better results by gearing efforts toward the smaller part of the customer base that produces the greatest return.

A couple of Decembers ago, Arbitron featured Bill Black, a Starbucks marketing pro, who boiled it down well.  Starbucks essentially has two core groups – “Super Regulars” and “Coffee House Enthusiasts.”  While other segments contribute to the whole, it is these two types of customers that drive the majority of their revenue.

Most businesses operate this way, and yet, radio programming debates abound as stations often try to “convert” P2s into P1s while often not super-serving those folks who are already very core to the station in the first place.

A new infographic (and a slice of it is below) does a nice job of illustrating the “80:20 Rule.”  Note that the rule was first developed more than 100 years ago.

In radio, programmers and managers would do well to truly understand and provide a better customer experience (CX) to their “Core 20.”

But where do you find them?  Simple.  Vast numbers of them are in your database.  And while some listeners who gave you their email address did so primarily to win concert tickets and other prizes, most others are “Super P1s” to your station - the "Core 20."  Using targeted web surveys that filter out these VIP listeners is something our company is actively doing for clients.  If you ask the right questions, you can isolate these key listeners, determine their needs, and simply give them what they want.

Like in the case of Starbucks, it often has little to do with freebies, and much more to do with access, communication, special treatment, service, and the ability to participate in discussions about your station brand.

The next time you’re in one of those strategy sessions, and the conversation turns to ways to convert cumers into P1s, think instead about ways in which you can do a better job taking care of the listeners who are already behind you, listening no matter what, and always willing to help you with your marketing.

Your “Core 20” is the secret to continued success.

The Big House

This post will not make the many Spartan fans who work for Jacobs Media and jacAPPS too happy.  But too bad, because those rocket scientists at the University of Michigan have done it again.

When you figure that Michigan Stadium a.k.a. “The Big House” probably sits empty for more than 100 days a year, how do you “repurpose” it to generate additional revenue and continue to build the storied “Go Blue” brand?

Simple – you provide the ultimate fan experience: the chance to get married right on the block M on the 50-yard line.

U-of-M (as it’s known in these parts) has set up the following rate card:

•  A one-hour on-field ceremony  $6,000
•  The stadium press box            $4,000
•  An individual suite                  $2,000
•  The Jack Roth Stadium Club    $9,000
•  The fan experience                 Priceless

Yes, this is great NTR – a chance to utilize facilities that otherwise go unused – but it is also a novel way to create the ultimate fan event.  As Katy Hepner, special events coordinator for Michigan’s Athletic Department, notes, “We know that we have passionate fans who, it would be their dream to have their wedding on the 50.  So we said, ‘Why not use the space some more and at the same time, we can kind of help make the dreams of our fans come true?’”  (And it's a lot cheaper than those "destination weddings" in Cozumel.) 

So, what does this mean to the well-branded, popular radio station?

Ask yourself this: what facilities, assets, and/or people sit unused that would make for that incredible fan experience?

Which of your personnel could contribute to creating “a moment” for your most passionate fans?

Whether it’s sitting in on a show, partying with the staff at a concert, or even attending a music meeting, most radio stations have the opportunity to generate more revenue – as well as incredible memories for true fans, not to mention the buzz that goes with it.

At our Summer School event at Conclave, KISS market consultant Mike Brandvold reminded us of the creation of the very first VIP Platinum Ticket program, which are now common in the concert industry.  They launched this initiative for KISS’ 2003 60-date U.S. tour, and achieved 100% sellout of the $1,000 tickets generating $1.5 million.

Great brands can provide listeners with a backstage, behind-the-velvet ropes experience.  Sometimes it’s just a matter of imagining your station through the eyes of your fans.

That’s why they call it CX – the Customer Experience.

Your New Call Letters

Now the speculation about what Randy Michaels will do in Chicago and New York revolves around the call letters that have been selected for the old WKQX and WRXP.

In Chicago, it will apparently be WWWN, and in New York City, WEMP.  So now the guesswork begins.  What do these call letters portend about possible format options for Merlin Media?  Is there anything that we could read into these call letter combinations that would help us interpret what’s coming?  Maybe we should hire a cryptanalyst to crack the code of exactly what these call letters mean.

Or maybe we should be focusing on a different set of call letters.

I’m here to suggest that the four most important letters in radio today are these:

CXUX

No, this isn’t a hip-hop station in Red Deer, Alberta.  It’s the acronym for Customer Experience/User Experience – a concept that is sadly foreign to many in radio.

We’re not alone.  According to B.L. Ochman, president of whatsnextonline.com, only three of the Fortune 50 companies bother to provide a simple phone number so that consumers can speak to a human being when they have a complaint, an issue, or even a compliment. (That would be Dell, Home Depot, and Lowe’s.)

Sure, there are many many customers on Facebook and Twitter, but even providing a simple telephone contact isn’t too much to ask these global companies, is it?   (As Ochman points out, even Verizon and AT&T – phone companies – don’t have phone numbers.)

The importance of CXUX should not be underestimated.  A piece of this infographic below illustrates the value of providing a positive consumer interface.  

The power of a good customer experience – or a bad one – is growing as businesses gain a better understanding of the value of recommendation.  This is a big topic, and it’s only going to gain importance over time.

While radio has done a generally solid job over the years of serving its various audiences – advertisers, listeners, communities – the focus has rarely been on improving that all-important customer experience.

Brands that combine stellar content, local service, and the ways in which the audience can interact with them will have a leg up over the competition.  As the graphic shows, customers will leave or switch.

Think about these seven ways in which your station interfaces with your public.  Here are a few things to consider and some questions to ask yourself and your team:

1. If a listener attempts to contact the program director, are there multiple ways to do so and are they clear to your audience?  And how long will that listener have to wait for a response?
2. What are the “touch points” on the station website?  Like B.L. Ochman’s survey, is there a phone number, email addresses, and other easy conduits so that consumers can get their questions or concerns handled?
3. Is there a firm policy in place for interaction with station personalities?  Are they all up-to-speed with how to use common channels like the station Facebook page, Twitter, email, and text?  Are there guidelines so that every personality understands the strategies and the rules?  Are there response time standards, as well as requirements they engage in converssation with listeners, and not just promote ticket giveaways and upcoming bits?
4. What is the policy for answering a studio or request line?  Are these calls promptly and respectfully answered?
5. Is the receptionist aware of how to refer to each station, current contests and promotions, and positioning?  Is he courteous, helpful, and in-touch with station goals?  When someone visits the station or stops by to claim a prize, does she present the best possible image for the brand(s)?
6. What guidelines are in place at station events?  Are airstaff members, as well as interns and the “street team,” showing the best side of the station?
7. Do clients get prompt answers to their questions – copy issues, schedules, etc.?  Does the station have people and policies in place to ensure that the station’s marketing efforts are responsive?

CXUX should be more than four letters – it should be the mantra that market managers, programmers, and DOS’ disseminate to every person at the station.

How’s that for a new set of calls?

Summer In The Twin Cities - Conclave 2011

On Thursday, we'll be hosting our second "Summer School" at Conclave.  Last year was the first time we were invited to take over a four-hour chunk of the agenda, and we not only had a great time putting it together, but it was extremely well-attended and the "students" were really engaged.

"Summer School" has become one of our favorites because we can put together a lot of different content and then share it in 20-30 minute energetic bites.  This year, we'll be featuring some of the Jacobs Media staff, including our new Social & Digital Strategist, Lori Lewis, along with Bill and Paul Jacobs and Ralph Cipolla.  The syllabus includes sessions on social media, teasing, lessons from PPM, the future of apps, and other great content.

And as always, we're fortunate to have some great speakers who aren't on our payroll, including:

Paul Krasinski, Arbitron's Senior VP of Digital Media and Analytics, who will share insight into Arbitron's digital direction.

Mike Reszler, Minnesota Public Radio's Managing Online Editor, who will answer "5 Big Questions and How MPR is Answering Them"

Michael Brandvold, who heads up his own marketing company, will share the lessons he learned from marketing the legendary rock band KISS, and apply them to radio.

We hope you've got the time to join us, Tom Kay, and the rest of the Conclave team for what will surely be another great experience in the Twin Cities.  Industry gatherings like this are important, as we come together to learn and share ideas.

There's still time to enroll in Summer School, where you'll also see great Conclave sessions, classes from AllAccess, RAIN, and other highlights.

Hope to see you later this week.

The complete syllabus is below:

8:00 – 8:40	Fans, Friends, & Followers – Fred Jacobs will share highlights from the 2011 Techsurvey 7 with social media insights and how brands can impact via social media avenues.
8:40 – 9:00	PPM Lessons For The Diary World – Bill Jacobs will share lessons we’ve learned from PPM markets, including information from Media Monitors.
9:00 – 9:30	5 BIG Questions, And How Minnesota Public Radio Is Answering Them – Mike Reszler, the managing online editor of visionary Public Radio organization MPR, shares the secrets of how they have built up a robust digital presence while maintaining broadcast excellence.
9:30 – 9:50	The “Backchannel” –  Fred Jacobs & Lori Lewis will tell the story of how a local television anchorman has harnessed the power of Twitter and how these lessons can be applied to radio.
9:50 – 10:10	The Art Of The Tease – Whether diary or PPM, it’s all about creating more listening occasions.  Ralph Cipolla reviews how any personality or host can write better, more compelling teases.
10:10 – 10:40	Arbitron’s Digital Direction – Arbitron’s Senior VP of Digital Media & Analytics, Paul Krasinski, lays out some of the newer measurement challenges and how digital competition is changing the overall listening picture.
10:40 – 11:00	The Killer B’s For Talent – Fred Jacobs shares ten important tips (that all start with “Be”) to help talent grow and to guide programmers in what to look for in new hires.
11:00 – 11:20	The 5 Things Radio Needs To Know About Social Media - Lori Lewis will lay out her strategic vision to help stations create a more lasting social brand relationship with their audience.
11:20 – 11:40	Marketing Lessons You Can Learn From KISS – The visionary behind the online mastery of KISS, Michael Brandvold will share their secrets and how they apply to radio.
11:40 – Noon	There’s An App For That – Paul Jacobs will outline the potential of the app market for radio as well as share examples from some of the best radio apps out there.

Content Isn't King

We’re living in a business world that is changing so quickly that it is sometimes hard to comprehend exactly what we should be thinking and focusing our efforts on.  Sure, we all have goals – ratings, share of market, sales numbers, EBITDA, and all that.

That’s the easy part, and if we keep our heads down and our eye on the proverbial prize, perhaps we can attain some level of success.  But in the bigger picture, the changing landscape often makes it different to know exactly what should be our top priority at any given point in time.

Most broadcast professionals are focusing their efforts on the product or the “mother ship” as our Lori Lewis refers to it.  But now, another voice from the wilderness comes along to shake up our worlds – just a bit.

Anomaly’s Carl Johnson (pictured) recently uttered these blasphemous words:

"Content isn’t king!"

Now given where we’ve been, this is equivalent to the old “man bites dog” headline.  Can you believe the audacity of this guy to make that statement in AdWeek, no less?

But when you hear Johnson talk about relevance over content, it strikes a chord that will have you nodding:

“I’d say the emphasis is on relevance and usefulness. The danger with the content story is—the most powerful thing you could do to me as a brand if I went to [a music festival] is you could chill my beer for me. If you pursue ‘content,’ you won’t come up with that idea. And if you go to the airport and get power from Nokia or Sony, that’s much more meaningful to me as a brand. I think content steers you away from that. I think content is a subset of that, if it’s relevant and useful. But the more fundamental thing is for brands to have a meaningful relationship and engagement with their audience.”

That quote crystallized some of the ideas that have emerged from Techsurvey7 about brands, relationships, and the ways in which our audience wishes to engage with our stations.  We can play the right music, have entertaining morning shows, and give away desirable prizes.

But in fact, we may provide even greater benefit at times by making listeners aware of the best restaurant and entertainment deals in town or help them get a great parking space for the McCartney concert at Comerica Park.

And don’t lose sight of the last part of Carl’s quote – the need to have “a meaningful relationship and engagement with the audience” starts with understanding who they are and what they want.

Too often in media, we ask the questions that we want to know the answers to.  What’s their favorite song?  Which station is the concert authority? Which DJs are excellent, good, fair, or poor?

But we often fail to ask how can we better serve the audience in a myriad of ways.  What type of relationship do they want with our stations?  And how do we go about fulfilling these needs?

Isn’t that why the Shazam app works?  Sure, it’s cool and fun to show others who don’t have a smartphone.  But in fact, Shazam solves a problem.  It helps to identify songs wherever we are and whenever we need to know – whether we’re at the gym, in a restaurant, or yes, listening to the radio.

CBS Radio’s Dan Mason’s idea to make artist/title information mandatory on his music stations seeks to fill a need – to be relevant and useful to consumers.  You could find this out in any research study you conduct among your audience or by doing focus groups or Listener Advisory Groups for that matter.

So maybe content is queen, but usefulness and relevance should be elevated in their importance – becoming a conversation point in every strategic meeting at your station.

Don’t you think?

Thanks to Dave Martin for tipping me off to Carl Johnson.