Digital Music Marketing
Introduction
The music industry ranks amongst the most lucrative economic sectors. The sector is projected to experience significant growth in the future, which presents an opportunity for artists to grow their income. Nevertheless, the success with which artists exploit the economic benefits inherent in the music industry depends on the effectiveness with which artists employ effective strategic management practices. Hon (2013) asserts that the music industry is substantially large as evidenced by the existence of diverse genres of music. Moreover, Bostrom et al. (2013) assert that developing competitiveness in the music industry requires musicians to develop adequate strategic management skills and knowledge. Developing managerial skills is essential in ensuring that artists have the capability to cope with the changes that occur in the music industry. One of the issues that music artists should take into consideration entails exploiting the opportunities provided by the emergence of digital technology.
Development in digital technology, which has been spurred by growth in internet technology, has provided artists an opportunity to reach the target market through music streaming (Kurtzman 2016). Examples of digital technologies that have undergone remarkable growth entail social media platforms such as Facebook, Whatsapp, Twitter, Instagram, YouTube, Wikis, and Blogs. These social media platforms have experienced remarkable growth as evidenced by the increase in the number of users (Costigan & Perry 2016). By April 2017, Facebook, WhatsApp, YouTube, and Instagram had 1200, 1968, 1000, and 600 million users respectively (Statistica 2017). The growing digitalization of the music industry has created an opportunity for artists to distribute their music through digital streaming and downloads (Drury 2013). Blogs and Wikis also constitute an essential category of social media that artists should consider exploiting in developing a relationship with customers.
In spite of the opportunities provided by the growth of digital technology, the sustainability of music artists in exploiting the benefits in the global music industry will depend on the extent to which artists develop and maintain relationships with customers. This outcome can be achieved through the incorporation of the concept of customer engagement. In line with this aspect, this paper entails a discussion on the concept of customer engagement, an explanation of why customer engagement is increasingly important, and an evaluation of how each social media tool identified enhances customer engagement. The analysis focuses on the application of the concept of customer engagement within the music industry.
Discussion of customer engagement
Customer engagement refers to the interactive process through which entrepreneurs co-create experiences and value with customers. According to Costigan and Perry (2016), customer engagement involves a ‘psychological state that occurs by virtue of interactive, co-creative, customer experiences with a focal agent or object, for example, a brand’ (p.103). According to relational theory, relationships between individuals are inherently experiential, highly interactive, and co-creative. The theory further proposes that developing a mutual and authentic connection is critical in establishing relationships between individuals. Rust and Huang (2014) further assert that the concept of customer engagement has transformed the role that was initially reserved for business. For example, customer engagement has provided individual customers an opportunity to participate in the generation of ideas with regard to different aspects of the firm’s operation such as ideas on new product development (Roberts & Candi 2014).
The process of co-creating experiences occurs through different channels of correspondence. Thus, customer engagement entails diverse aspects such as interaction and reaction. Costigan and Perry (2016) argue that customer engagement may occur either through online or offline channels. Customer engagement mainly involves business-to-customer interaction. However, it also entails interaction between customers. One of the fundamental elements of customer engagement entails communication between parties. In addition to these elements, Hollebeek (2011) asserts that customer engagement is a dynamic and iterative process in service relationships and leads to the creation of value.
Alternatively, the Information Resources Management Association (2015) asserts that customer engagement is ‘a multidimensional concept subject to a context and /or stakeholder-specific expression of relevant cognitive, emotional and/or behavioral dimensions’ (p.652). Customer engagement refers to a specific geographical context but also involves the medium through which consumer engagement occurs. Rust and Huang (2014) argue that customer engagement is fundamental in entrepreneurs’ quest to survive in an environment that has increasingly become connected.
Development in the concept of consumer engagement means that entrepreneurs do not have exclusive control over their operations. On the contrary, customers also have a significant degree of control over marketing activities. The concept of consumer engagement can be defined on the basis of three main dimensions that include customer-to-customer interaction, customer feedback, and customer co-creation in developing new products. Hollebeek (2011) asserts the emergence of a progressive customer environment demands businesses and entrepreneurs to establish and maintain direct communication with their customers. This aspect is critical in developing and maintaining brand loyalty and increasing brand awareness.
In summary, this definition indicates that customer engagement is an interactive, dynamic and co-creative process of value. Additionally, the definition reveals that customer engagement is a critical element in promoting long-term relationships between businesses and customers.
Explanation of why customer engagement is increasingly important
Customer engagement has become one of the most important strategic management that businesses and entrepreneurs intending to achieve long-term sustainability should pursue. Its significance arises from a number of aspects as explained herein.
Co-creation and addition of value
One of the most important benefits of customer engagement is that it provides customers an opportunity to be involved in the development of new products. Fernandes and Remelhe (2016) affirm that customers are no longer passive audiences in the production process. Nevertheless, customers are active co-producers. Through this approach, entrepreneurs are able to design and develop products that are aligned with the customers’ needs and demands. This arises from the fact that customer engagement occurs in an environment that is characterized by sharing and learning in an effort to understand the customers’ needs (Akhilesh 2017). Hollebeek (2011) asserts that sharing and learning are essential in influencing individuals’ effectiveness and efficiency in entrenching knowledge as the foundation of implementing change. Customer engagement is therefore essential in promoting the effectiveness and efficiency with which music artists as entrepreneurs create value for their customers. The overall effect is that there is a high probability of the new product gaining market acceptability.
Knox et al. (2007), assert that customer engagement is critical in enhancing the success with which entrepreneurs maximize the value of their customers by understanding their needs, tastes, and preferences. On the basis of the knowledge created between the customer and the brand, the brand owner can be able to gain insight on what is likely to shape their future interaction with the customer. For instance, developing knowledge on customers’ product tastes and preferences, the brand manager can make effective decisions on the most effective approach to adopt in undertaking brand improvement (Knox et al. 2007).
In addition to this aspect, customer engagement provides an opportunity for entrepreneurs to benefit from ‘shared inventiveness’ whereby the input of customers is taken into consideration in the new product development process. Fernandes and Remelhe (2016) affirm that customer engagement provides customers an opportunity to be involved in the various stages of new product development including ideation, concept development, testing, and introduction of the product in the market. Hollebeek (201) emphasizes that new product development is determined by the extent to which entrepreneurs understand the customers’ knowledge. According to Fernandes and Remelhe (2016) asserts that ‘by involving consumers more activity in the process, new ideas are more likely to be valued by them, thereby increasing the probability of success’ (p.316). Through product co-creation, businesses and entrepreneurs can succeed in developing products and services that increase the future sustainability of a business or a product. For example, co-creation can be a source of critical insight into the existing gaps within a product. By acting on the customers’ input, entrepreneurs can make the requisite adjustments. Thus, customer engagement is an essential strategic issue in entrepreneurs’ quest to undertake new and continuous product development.
Generation of sales revenue
Customer engagement comprises one of the fundamental strategic elements in businesses’ and entrepreneurs’ pursuit to generate sales revenues (Switt 2011). This arises from the fact that customer engagement is positively correlated with the development of customer loyalty. This view is emphasized by Hillary (2015) who asserts that ‘customer service is moving into an era of engagement where customer loyalty is focused more on long term relationships than loyalty cards and points’ (p. 60). Customer loyalty contributes to the development of repeat purchase behavior amongst consumers hence increasing the likelihood of a business maximizing its sales revenue. Sharma and Rather (2016) emphasize that loyalty is a critical determinant of the extent to which an organization has succeeded in its marketing process.
Nurturing a high degree of customer engagement positively influences the extent to which customers identify with a particular brand or organization. Through this aspect, there is a high likelihood that customers will recommend a particular product to their colleagues. This increases the likelihood of the entrepreneurs increasing their customer base. Hollebeek (2011) argues that customer loyalty has become a critical determinant of businesses’ long-term success and sustainability. Customer engagement enables entrepreneurs to develop an interactive brand experience that goes beyond the purchase point. According to Hollebeek (2011), customer engagement positively influences consumer perception.
Customer relationship management
The significance of customer engagement is further enhanced by the fact that it increases organizations’ effectiveness in undertaking customer relationship management. One of the fundamental benefits of customer relationship management is that it enables an entrepreneur to differentiate their brand hence increasing the probability of achieving an optimal market position. Through this approach, entrepreneurs can maximize the sales revenue generated from their brand. Benning (2012) asserts that CRM is an enterprise-wide business strategy whose objective is to increase the customers’ level of satisfaction. This arises from the fact that entrepreneurs are able to design their brands around the customer segments. By entrenching customer engagement as one of the key components of their customer relationship management, entrepreneurs can succeed in attracting, retaining, and growing their customer base hence strengthening their market position in an industry that has become very competitive.
How social media enhances customer engagement
Collaboration with customers
As entrepreneurs, music artists package themselves as a brand. In an effort to enhance customer engagement, artists are increasingly employing social mediums such as Facebook, Twitter, YouTube, Wikis, and blogs as a medium to interact with customers. Artists use different social media differently in enhancing customer enhancement. One of the fundamental ways through which entrepreneurs use social mediums includes collaboration in order to nurture a sustainable relationship with customers.
Facebook and YouTube
As some of the core social media, artists are increasingly using Facebook and Twitter to interact and collaborate with their customers. Through these social media platforms, artists are able to nurture a high degree of interdependence with the customers. For example, Facebook and Twitter are very effective in promoting two-way communication with customers. Customers use Facebook and Twitter to share their opinions and ideas regarding a particular brand through these social media platforms. Thus, artists can optimally respond to the issues raised by their customers through social media. Through this approach, social media increases the level of satisfaction among customers. Shanmugasundaram (2005) asserts that interacting with customers is essential in nurturing a high degree of intimacy with the customer.
YouTube, WhatsApp, and Instagram
WhatsApp, YouTube, and Instagram constitute important social media platforms that are increasingly being used by music artists in marketing their brands. Their applicability arises from the fact that these social media apps provide artists an opportunity to stream videos. Artists use these social media to share their music videos with the target customers. Subsequently, artists are able to provide the target customers with a sample of their musical work. Through this approach, music artists are able to interact with customers in addition to keeping them abreast with their products. Music artists use social media to invite their targets to their events such as launching their music albums (Medudula, Sagar & Gandhi 2016).
Blogs and Wikis
One of the ways through which music artists can achieve competitiveness by exploiting digital technology entails positioning themselves as a brand. To achieve this outcome, artists are increasingly entrenching blogs, which entails web-sharing technology. Artists can use blogs as one of the social media platforms to entrench the competitiveness of their brand by sharing information regarding their music. For example, artists can share the lyrics of their music through the blogs. Additionally, blogs provide customers an opportunity to share their opinions on the information shared through the blog. For example, music artists can engage their target customers by sharing their experiences and projects in chronological order. Through this approach artists can optimally share information regarding the progress of a music project, for example, the progress of a new music. By designing an effective blog, it is possible for artists to attract a dedicated readership. Additionally, music artists can engage customers in the co-creation of knowledge regarding a particular issue that is related to music. This approach presents an effective approach in artists’ quest to develop knowledge.
Nelson, Joos and Wolf (2013) defines wikis as ‘applications or websites that permit people to quickly comment on, edit for the purpose of improving, and collaborate in sharing their expertise for the benefits of the web pages contained on the wiki website’ (p.44). Research studies show that wikis are increasingly becoming very important as a source of critical information that entrepreneurs can leverage in their product development process (Nelson, Joos & Wolf 2013).
Conclusion
Customer engagement is a fundamental strategic management aspect that entrepreneurs’ and businesses should consider in the quest to gain sustainable competitive advantage. Therefore, as entrepreneurs, music artists should entrench customer engagement in positioning themselves as a competitive brand in the music industry. Customer engagement is based on the relational theory, which emphasizes on the importance of establishing a strong relationship with the target audience. The concept of customer engagement emphasizes the importance of integrating customers as a critical component in their marketing function. For example, customer engagement provides customers an opportunity to participate in the generation of ideas with regard to different aspects of the firm’s operation such as ideas on new product development. Thus, customer engagement underscores the significance of ensuring that customers are active participants in their operation. The rationale of customer engagement is to promote long-term and sustainable customer relationships.
Growth in the significance of customer engagement has been spurred by three main aspects which include the need to co-create and add value to the final product. Customer engagement makes the attainment of this aspect possible because it provides individual customers an opportunity to share ideas and opinions regarding a particular brand. On the basis of this aspect, artists are able to add value to their brand or music. Growth in significance of customer engagement arises from the fact that increases the probability of music artists generating sales revenue. This arises from the fact that customer engagement provides artists an opportunity to develop customer loyalty. Additionally, the significance of customer engagement arises from the fact that it fosters the development of customer relationship management, which increases the artists’ future sustainability in the music industry.
In pursuit of competitiveness in the music industry, artists are increasingly entrenching the concept of digitalization in enhancing customer engagement, which is evidenced by the adoption of social media platforms such as Facebook, Twitter, YouTube, Instagram, Wikis, Blogs, and WhatsApp. Through these social media platforms, artists are able to enhance customer engagement by promoting the effectiveness with which artists share their music products through digital streaming and digital downloads. The social media platforms provide artists an opportunity for two-way communication. Social media platforms provide artists an opportunity to share ideas and opinions, which are valuable in the development of new products and undertaking continuous product improvement. In summary, the digitalization of the music industry has played a fundamental role in improving the effectiveness with which artists undertake the marketing function.
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