Big data, well-assembled, can provide a comprehensive picture of a business’ current landscape. It’s the smart business, however, that can manipulate that data and put it to work for them in the future.
The music industry had to smarten up before many other industries. They learned to repurpose an unprecedented amount of customer data to evolve to a changing marketplace, reimagining their marketing strategies. Today, for many businesses, there is much to be learned from the trail those music companies have blazed over the last ten years.
The music industry was one of the first hugely impacted by the Internet, with large-scale file sharing that affected music sales. After several years of fighting this change, the music industry embraced digital music sales—and to use the data produced to offer their customers what they want.
According to Alisa Olander, VP of Strategic Insights and Research at Universal Music Group, the world’s leading record company, data insights have made all the difference in improving marketing efforts:
“Today with big data, marrying both the [quantitative] and qualitative research methods is really key. We collect so much data within a given day and it allows us to have a more intimate look at who our consumers really are, how they are consuming, their affinities and their path of purchase.”
For Olander, the greatest driving force behind change in the music industry is technology because it has affected how people engage, consume, and purchase music.
Rob Cromar, VP, Enterprise Reporting Systems at UMG, explained “the music business is shifting from a physical sales model to a digital model with a multitude of new and rapidly changing music and video services.” All this digital data is stored on hardware in data warehouses and requires specialized software skills to perform data analysis, integration, and reporting. For Cromar at UMG, Microsoft SQL Server Fast Track Data Warehouse is a low cost, efficient, and reliable data solution.
According to Rajesh Babu, Senior Director of Global Business Intelligence at UMG, the SQL Server Fast Track Data Warehouse renders a report based on one week of data at a rate 20 times faster than their old IBM DB2 solution. Every day, the solution processes more than 40 million transactions and generates about 800 reports for 1,000 users. In addition to expediency, Babu reported 100% uptime so UMG data is always available and accessible. This way reports are delivered on time and consumer data can be tracked accurately and analyzed accordingly.
This deep understanding of customer data is what enables the music industry to predict not just consumer interest, but purchasing patterns, download behavior, and most importantly listening habits and tastes to the point they can have a direct effect on a song climbing to the Billboard Top 100.
The music industry has had to transform digital media consumption from an obstacle to an asset before many other industries. Using information gathered from big data and analytics, they’ve built innovative marketing strategies that are attracting consumers in unexpected ways and in unprecedented numbers. Many businesses just now wading out into the depths of big data can take this story as some sound guidance—with the multitude of information now available, marketing is a whole new ballgame.
Thank u again. I like sharing with my music friends