Marketing To Grow Loyalty

Loyalty marketing (social, data base, telemarketing and target campaigns) should also be a cornerstone of any country broadcaster's long-term plan. 

There is, however, another tool that is so inexpensive and easy to do that many stations overlook it as a good barometer of problems that might require more extensive quantitative research and/or marketing:  ask your listeners! 

Set up a panel of your active listeners, and meet with them on a regular basis.  We recommend airing an ongoing campaign of an nouncements on your air to inform listeners of the existence of your "Listener Advisory Board." 

Set up a link on your website for people to "sign up." 

Send a weekly station newsletter to the entire data base.  Do online research, set up a "get a clue" voice mail line for listener complaints/suggestions, and con stantly invite opinions on station programming on it.  Air listener-voiced comments and/or read their letters in regular promos to let people know you really do pay attention to their gripes and compliments.

Choose listeners at random from the panel to meet for a light dinner (restaurant or hotel trade) monthly with station staff and/or independent research people.  AOB will be happy to perform this function for you if a qualified moderator cannot be found at a local college or university marketing research department.  Keep us informed on problems and results if you choose to conduct the panels in-house.

Keep the groups small - less than 15 persons.  Use the panels to test potential marketing campaigns, TV commer cials, contests, morning show ideas, special programming, poten tially objectionable commercials, new music trends, etc. 

Recognize that you are NOT doing research, since the participants are aware of the station that is asking the questions.  However, since the bias in groups like this is to normally be quite com plimentary, when negatives come out they must be taken very seriously.

Actually, it has been our experience that country fans feel a sense of ownership of "their" radio station, and as a result when they are convinced that honesty will be taken seriously and result in changes on the air, they can be brutally frank and protective about the airwaves of their favorite station.

And, isn't that the way to make them feel involved and loyal to keep 'em listening longer? 

Besides, what competitor can take away your listeners when they feel like they all sit on your "Board of Directors"?

(More On) Loyalty

Country was a format with much greater loyalty 20 years ago. The mainstream AC listeners who were using Country as a P-2 back then are moving away from that format and are changing the face of the country audience now, growing our cume and shares, but reducing loyalty levels that we once took for granted.  And, that's not even mentioning the fickle Millenials who have been turning on to country since they were teens.

Success has it's costs, as the country audience becomes more like the mass culture and less qualitatively unique.

Another price of this growth:  once, country's "conversion ratio" was 1.42, but as average shares have increased, the format hasn't been able to convert ratings to revenue at the same rate.

The country format's growth is clearly less dependent than ever before on retaining long listening spans from a small base of very loyal listeners as less-loyal Gen Y has come into our universe. 

Just a few years ago, country would have been on the top of the list of 'loyal formats.'  Today, shifting demo targets, increased duplication, competition and PPM have made country radio less exclusive.  Diary measurement still picks up exclusive cumes (folks who write down no other radio station in their book other than their favorite one.  The great thing about PPM is the fact that the average radio station's cume doubles.  The bad news is that the average listener is shown to actually listen to almost twice as many radio stations as are seen in diaries and exclusive cume listeners are practically non-existent.

Next time, let's think about ways to improve the loyalty of your audience.

Loyalty: Even More Important Today

As markets become more compressed due to PPM's small samples and owners of the big combines fragment, niche and offer listeners more diverse choices to try to grow their combo share, loyalty is at a premium.

Passionate listenership patterns are the key to understanding what may happen when one station acquires a competitor which is starting to happen more now with deal-making starting to heat up again as station multiples have come down as lender money dried up due to the economy of the last few years. 

Sub-genres that live within a format -- if they create or improve passionate listenership due to narrower targeting of niches within a format-- can actually increase the overall shares for a format.  

My views, shaped by experience and observation:

"Jazz/NAC," Urban, and Urban Adult Contemporary are formats that actually grow when competing amongst themselves. This is because listening to these formats is so passionate that it eliminates outside listening.  For instance, a heritage Soft Adult Contemporary radio station may suffer at-work losses if an Urban AC or Jazz comes on but only from its African-American listeners.

Driving up share is also true in Rock, in that Rock listeners are loyal to the format, and, therefore, move between Rock, Classic Rock, Adult Alternative, and Alternative. The outside formats are the ones that suffer a new Rock station's arrival.

Adult Contemporary listeners are not format loyal, and, therefore, are tougher to convert.  If you have a Adult Contemporary station and you put on a Hot Adult Contemporary station, you'll undoubtedly damage yourself as these listeners tend to share their TSL with many other formats. It's all a matter of shelf space.  This can also happen as a Hot AC or CHR pulls an AC in a more "hot" direction.  Meanwhile, loyalty also diminishes for a soft AC station that fails to recognize the current music trends and remains too "soft" and "warm" for evolving demos.

The Classic Hits Format is not loyal within its life group; nor is Adult Alternative. This can be seen by the various Top 5 sharing patterns of these formats.

Adult Standards, by and large, stays on the AM band and is not format-loyal, but band-loyal.

Adult Urban is a highly loyal listener format. The benefit is that African-American listeners tend to listen longer to the radio than the average non-ethnic listener.

This is also true with Hispanic-targeted formats, but it's becoming less so because "first language" preference also plays a role as well, especially as Hispanic formats have broken into smaller pieces at a tremendous rate in many markets due to the growth of the Hispanic audience.

Business is generally AM band loyal as are News/Talk and Sports, as - for example - Entercom revealed in its recent Buffalo format finder research.  It was this format change that inspired this article. 

Most of the things that move up and down the AM band are loyal to AM, driven by the reality that by and large the difference between FM and AM listeners is age.

Putting Oldies, Standards/Nostalgia or Classic Country on an AM you own and News/Talk on another may be positive in that it limits the crossover between the two, for example.

You may have a tactical strategy to dominate News/Talk and, therefore, you opt to have a major News/Talk station that carries all of the big Talk shows and a secondary, lower-power AM station that presents the competing syndicated programs.

The plus here is that this keeps them off a competitor, but you are attacking yourself. 

It seems to me like moving a big news/talk station to FM or simulcasting an AM and FM cannibalizes the audience and in my view most often wastes an FM, leaving you with a weaker AM.

These are all broad generalizations, of course, and every market situation is unique, creating its own individual parameters.

More on loyalty tomorrow.