Wondering how to engage your business audience and keep them coming back? New research from Pink tour promoter Live Nation Entertainment found that brands that have a presence at live music events can benefit from increased customer loyalty.
When it comes to brand loyalty, Aussies and Kiwis are amongst the most loyal consumers in the world, according to new research from Live Nation Entertainment.
The Driving Loyalty research study surveyed music goers aged 18-54 around the world to determine their thoughts on loyalty programs.
The research found that 2 in 3 live music goers are open to joining a new loyalty program at a live event. The perk Gen Z want more than anything else from a loyalty program? Discounted tickets.
“Over half of all people state that they would likely make the switch to a loyalty program that offered live music perks, saying that it makes a brand more innovative and relevant to their lifestyle,” a statement from Live Nation says.
“63% intend to spend more money with brands that offer live music perks.”
“You never forget the experience of a live music event, and based on survey responses, this includes the brands that help bring these events to life.”
Frances Deighton, Strategy Lead at Live Nation Entertainment
The millennial and Gen X demographic are looking for ‘comfort’ VIP experiences at live music events, and they are willing to join loyalty programs from brands to get it.
“Live music has the power to generate emotion and consumer passion like nothing else, and there’s an incredible halo effect for brands that include live music perks in their loyalty programs,” says Frances Deighton, Strategy Lead at Live Nation Entertainment, in an exclusive interview with Forbes Australia.
“You never forget the experience of a live music event, and based on survey responses, this includes the brands that help bring these events to life.“
Post-pandemic, there is a groundswell of interest globally to attend music events. The pent-up demand presents an opportunity for brands wanting to reach targeted demographics and to benefit from the celebratory, festive tone of live music.
“Incorporating passion-fuelled benefits such as access to live music experiences into loyalty programs can really help brands break through to existing and potentially new loyalty members,” says Deighton.
“Our research shows that leveraging the power of live music in loyalty programs resonates with most Australians and positions a brand to be more innovative and aligned to their lifestyle. This results in higher engagement, spend and in most cases, the reason for sign-up or switching to a competitive loyalty program.”
Live Nation, a public entity on the NYSE, reported global revenue was up 36% year over year, to $16.9 billion in its last quarterly report. Operating income was up 35% to $1.1 billion.
To make a comparison to pre-pandemic results, adjusted operating income for January to the end of September 2019 was $861 million. In 2023, adjusted operating income for January to the end of September was $1.7 billion – double what it was in 2019.
Live Nation Entertainment President and CEO Michael Rapino credits international expansion with the growth.
“Today we delivered our strongest quarter ever and are on pace for a record 2023, driven in good part by the acceleration of structural growth in the live entertainment industry,” Rapino said in an earnings statement in November last year.
“With the majority of opportunity still untapped from Milan to Bogotá to Tokyo and beyond, we expect the industry will continue growing in 2024 and for years to come.”
Full-year 2023 results will be announced later this month.
Local figures show record ticket sales in Australia and New Zealand in 2023, despite inflationary pressure. 2023 was a record year for touring, the number of concerts increased by 26%, and there were 79% more ticket sales.
Music fans have a visceral experience at live entertainment events that has a lasting emotional impact, according to the Driving Loyalty study.
“Globally, 67% of music fans claim that live music events are home to some of their most memorable moments, with two-thirds connecting their emotions with the brands, products, and services they interact with at the event,” the research states.
And that insight can help brands tap into the mindset, excitement and loyalty of customers, says Deighton, the Live Nation Entertainment Strategy Lead.
Other takeaways to come out of the study are that the favoured structure for a loyalty program is a points system, loyalty program members prefer to communicate via email, and retail is the preferred environment for customers to sign up to a new program.
The Live Nation research found that 91% of respondents were members of a retail loyalty program. 59% were a part of fast food loyalty programs, 57% had joined clothing apparel programs, and 55% of respondents were members of a travel loyalty program.
“Our research can help brands and loyalty marketers understand what motivates their customers and keep them not only engaged but also feel valued and special,” says Deighton.
Look back on the week that was with hand-picked articles from Australia and around the world. Sign up to the Forbes Australia newsletter here or become a member here.
