What Can Retail Learn from the Performing Arts? - w/ Aubrey Bergauer, San Francisco Conservatory of Music
Future Commerce · with Aubrey Bergauer · February 7, 2020 · 62 min
Summary
This episode draws parallels between the performing arts and retail, highlighting the critical need for customer retention and adapting to evolving consumer behaviors. It emphasizes that while the "product" (be it classical music or retail offerings) might be excellent, outdated business models and marketing approaches are hindering loyalty. Ecommerce operators can learn from the arts by re-evaluating their subscription strategies and focusing on the customer experience to drive repeat business, particularly when facing fleeting customer loyalty in a competitive landscape.
Key takeaways
A 90% customer churn rate, even for first-time buyers, is an alarming statistic directly applicable to ecommerce for understanding the challenge of initial customer retention.
Re-evaluate loyalty programs and subscription models; despite changing consumer habits, the subscription model "is not dead" and can be repackaged for modern consumers.
Focus on the customer experience and marketing rather than solely on the 'product' itself, as even an excellent product won't retain customers without a compelling customer journey.
Traditional playbooks in any industry can become obsolete; continuous innovation and adaptation to consumer behavior are crucial for long-term survival and growth.
Analyze your "first-time buyer" experience rigorously to identify and mitigate factors contributing to high churn rates, such as poor onboarding or lack of perceived value after the initial purchase.
Phillip & Brian are joined by Aubrey Bergauer to talk about marketing in the arts. Aubrey discusses that orchestras need to better serve the general population by making orchestral music more approachable by the general population. Not a change in product, rather a change in presentation.
What does this episode say about customer retention?
A 90% customer churn rate, even for first-time buyers, is an alarming statistic directly applicable to ecommerce for understanding the challenge of initial customer retention.
What does this episode say about subscriptions & ltv?
Re-evaluate loyalty programs and subscription models; despite changing consumer habits, the subscription model "is not dead" and can be repackaged for modern consumers.
What does this episode say about brand & content?
Focus on the customer experience and marketing rather than solely on the 'product' itself, as even an excellent product won't retain customers without a compelling customer journey.
What does this episode say about dtc strategy?
Traditional playbooks in any industry can become obsolete; continuous innovation and adaptation to consumer behavior are crucial for long-term survival and growth.
What does this episode say about customer retention?
Analyze your "first-time buyer" experience rigorously to identify and mitigate factors contributing to high churn rates, such as poor onboarding or lack of perceived value after the initial purchase.
