1to1 Magazine Demo

Marketing Optimization | BY ELIZABETH GLAGOWSKI EMI Music GOLD EMI Music Embraces the Digital Customer Revolution e MI Music is in the midst of a transition. The record company must build a brand new business model in this digital era of iTunes and MP3s. To compete, it created a multichannel, customer-based marketing strategy to reach consumers with relevant and personalized messages via their preferred channel, and to allow them to be part of the creative process with such EMI artists as Coldplay, Kate Perry, Moby, and Robbie Williams. “We want to improve our knowledge of consumers and get a 360degree view,” says Guillaume Pech-Gourg, director of content and consumer relationships for EMI Music. Daft Punk in Your House EMI artists Daft Punk are an electronica duo known for remaining anonymous. They don masks, black hoods, robot costumes, and even re-create themselves as animations during live performances, adding to the band’s mystery and allure. However, the band has taken advantage of EMI Music’s digital strategy to connect directly with fans. According to EMI’s Guillaume Pech-Gourg, the band conducts regular live chat events with fans online, answering questions and detailing their activity. “It’s a way for them to talk to fans specifically without showing their faces. It keeps the mystery but enables direct access.” In the past consumers interacted with mass market retailers when purchasing music. By working with enterprise marketing software vendor Neolane, EMI Music created a centralized, opt-in customer database of 3 million consumers it can now interact with directly. The company uses email, print ads, websites, and mobile channels to hold contests, surveys, and offer promotions, at the same time requesting that consumers register to hear more from EMI artists. It even sends messages via artists’ MySpace and Facebook pages to encourage customers to register. And the company’s Opendisc program pops up a registration screen when the consumer loads a CD into a computer. “We get several thousand consumers every month [to opt into the database],” Pech-Gourg says. Once in the database, EMI marketers can access the data in real time to create individual profiles based on customers’ media habits and preferences, musical tastes, online behavior, shopping habits, and sociodemographics. EMI sends relevant artist information, surveys, promotions, and more via each customer’s preferred channel—print, email, or mobile—totaling nearly 100 targeted campaigns each month. The company offers presales on new music, coupons, members-only downloads, ringtones, and more to boost revenue. Pech-Gourg says another goal of the program is to learn from consumers. “Consumer tastes evolve all the time, and we keep listening to them,” he says. “CRM is a great research tool. Consumers really love to give their opinions and be part of the music industry.” For example, EMI created a cross-channel campaign for 80,000 Robbie Williams fans, promoting a digital video player giveaway in return for completing an online survey. The campaign had an open rate of 41 percent, a response rate of 24 percent, and 52,800 click-throughs to EMI’s site, exceeding the company’s expectations. And this year EMI expanded its mobile channel. “More than 25 percent of our database wants to be contacted via mobile,” Pech-Gourg says. “It’s very important to segment and personalize the messages via mobile because it’s a more intrusive channel.” EMI sends SMS messages to alert fans about upcoming events, provides links to artists’ websites, and offers ringtone and wallpaper downloads. In the 18 months since deploying the consumer database, EMI Music’s digital revenues nearly offset the decline in physical sales. The company is on track to meet its projected goal of ensuring 25 percent of sales revenue comes from legitimate music downloads by 2010. The database is growing, and opt-out rates remain low. “CRM is a new revenue stream,” Pech-Gourg says. “It has bottom-line impact. It’s great to get insight, but we also need to speak to the business objectives.” —EG 34 1to1 magazine ★To learn more about the Gartner & 1to1 Customer Award winners, visit: www.1to1media.com/links/G1awards.html http://www.1to1media.com/View.aspx?ItemID=30794 http://www.1to1media.com/links/G1awards.html

Table of Contents Feed for the Digital Edition of 1to1 Magazine Demo

1to1 Magazine Demo Contents 1to1media.com Editor's Note Feedback Putting Care in Patients' Hands Loyalty at Work Redefining the Contact Center Agent Introducing Enterprise 2.0 Cigna Dental Drills for Loyal Customers On the Beat 19 Ways to Succeed Miami Heat Schools Its Staff on Sales and Service Marketing Lends a Helping Hand More Than Meets the Eye Customer Service by Committiee Textron's Business Soars by Tracking Customer Loyalty Resources Contact Center Agent as Trusted Advisor Mastering Global CRM Face to Face with Don Peppers and Martha Rogers, Ph.D.

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