Category: Latest News

The latest news from Jeremy Larochelle, MBA

It’s Still About Opportunities to See

Jeremy Larochelle

Gone are the days of malls, mom and pop stores, and various other brick and mortar outlets. They have been replaced by online merchants, specialty “long-tail sites like Etsy,” demand channels such as eBay, and social sales through Facebook, Pinterest, and Instagram among others.

 

When the distribution point of your product changes, it is imperative that your marketing strategies change with it. Why? New distribution points suggest you are dealing with consumers who have adopted new purchasing behaviors or, perhaps even more challenging. You need to re-train existing customers on these new digital protocols without losing their business. A great example lies in the fact that online buyers can’t physically touch the merchandise before they buy it. For some, who have grown up in the “online” world. This isn’t an issue. However, for department stores such as JCPenney’s and Macy’s with a funnel full of brick and mortar customers used to handling the merchandise. This is a problem that must be addressed.

 

The savvy marketers at Zappos quickly found the solution to this problem with their free returns and exchanges policies. Today, major retailers (including the aforementioned) have followed suit and now offer free returns. Some go so far as to streamline the process by providing return labels inside their packages and expedited reimbursement paths through the customer’s account section of their site. While John Q buyer still can’t touch the product before he makes his purchase, these policies reduce the perceived risk of their pre-purchase rituals and help close the gap between the brick and mortar and online worlds.

 

This is just the tip of the iceberg in regards to the changes the new “online” marketing landscape has forced on firms large and small. Customer reviews have become imperative for a company’s success as well as PCI compliant websites, PayPal payment channels, mobile-friendly landing pages, and social listening and engagement by the brand.

 

However, one core marketing element remains unchanged.

 

Opportunities to See still dominates the marketer’s playbook. Ultimately, the adperson’s primary goal still boils down to getting the brand name in front of as many relevant consumers as possible, so you can get them into the sales funnel where they will start the buying process.

 

I will argue that it is even more important now than ever.

 

In the past world of brick and mortar selling, competition was somewhat limited by physical location. E.g. you had to have a store or place for your customers to go to compete. Today,  many barriers to entry like this have been torn down like the Berlin Wall. It no longer matters where you are located or how much intellectual and financial capital you have. If you have the will and an internet connection. You can compete. Last year, popular online commerce platform Shopify announced the company supported over 375,000 merchants alone by the end of 2016.  That’s just one “out of the box” provider that caters to the “limited entrepreneur.” Add in other services such as Volusion, Magento, Bigcommerce, Wix, WordPress, and proprietary sites and it is very likely your business (no matter how niche it may be) is competing with a plethora of other brands across the web for the same customer’s attention. However, it get’s even more difficult. Since it takes the average online patron numerous views across multiple channels before they click “buy now.” Getting your message in front of those customers as many times as possible becomes a key ingredient to your success.

 

Yes, the distribution channel has changed and, yes, marketing strategies have changed with it. However, don’t let modern agencies scare you with new terms such as bounce rate, page views, click-through rate (CTR), cost per thousand (CPM). It all boils down to one basic fundamental that hasn’t changed in marketing strategy.

 

Opportunities to See.

 

 

 

Is EDM About to Tip Over?

Jeremy Larochelle

First and foremost. This is just my opinion on where the Electronic Dance Music (EDM) genre is headed. However, I will apply some scientific theory to my analysis. If anything more, than to just make me sound MUCH smarter than I am.

 

With that being said, I want to start off by presenting you with the basic Adoption Cycle.  It looks something like this. Some may notice it is a bell curve with a normal distribution and standard deviation.

 

A basic adoption cycle

 

The adoption cycle concept runs through nearly every conceivable business offering and music consumption is no different. Credit of the current model can be traced back to Everett Rogers who organized consumers into various groups based on their personality traits. According to Rogers, these traits influence their adoption of a new offering in the marketplace. The fashion industry is a great example of how the adoption cycle works. In this example, Gucci will unveil a new line at Milan Fashion Week. Right out of the gate, Innovators will spar and pay top dollar to be the first to don the coveted threads as they are typically of a higher social class and thus inelastic to price. Shortly thereafter, the Early Adopters will seek out the new styles. Many of these individuals are of the opinion class, industry gatekeepers, who influence the longer running growth of the Early Majority, which follows to the apex of the Bell Curve.

 

At this point, another economic principle takes hold. With Innovators, Early Adopters, and the Early Majority showcasing their new wears, more potential consumers are influenced and demand increases. However, those left are more price sensitive, so they seek out alternatives, which are satisfied through bargain stores such as Macy’s and Target that appeal to that Late Majority. At this point, Gucci has lost their competitive advantage and the company will move onto the next great design, leaving the market to these lesser profitable sales channels. With that exit, price continues to drop allowing the Laggards to pick up knockoff items for bargain prices at lower-cost outlets. Then, the cycle starts again with the newest fashion.

 

One might think that the adoption cycle is entirely the brainchild of the master brand to get you to purchase new items every year. And in many ways. It is.  In the technology market, this is called product obsolescence. However, the cycle is also a reflection on how different consumer personalities correlate to a particular product at various price points on the supply/demand curve and when analyzed from this perspective. One can more-easily predict when a product, fad, or trend is about to change or even disappear from the mainstream market altogether.

 

This analysis can be applied to the product of music as well. How many times has a friend told you about a new group that you have never even heard of? In this situation. That friend is an Innovator. Or have you ever listened to the radio or a curated playlist, heard a great new band, and then went and streamed their album. (That channel who lead you to the band is made up of Early Adopters). A year down the road, you go to their sold-out 600 seat show to join the Early Majority who have been influenced by those Innovators and Adopters. A year after that, your new favorite band is in-town playing before 1,500 Late Majority fans who have finally caught on. As the years follow, the band continues to pick up fans, but at a less rapid pace. They play to 1,850 the next year and 2,000 Laggards the year after that while a newer act fills the venue across the street on their second route through town.

 

This is also the case with entire genres of music.  Remember Grunge?  How about the Ska movement?

 

Which brings me to my contention regarding EDM.

 

Specifically in the U.S., we currently seem to be sitting at (or even slightly over) the apex of the bell-curve regarding the EDM adoption cycle. Evidence of this lies in where the genre has permeated society. It used to be that EDM was underground, held at house parties and hidden raves where Innovators caught artists such as Armin Van Burren, Daft Punk, and Afrojack on their rise. Music consumers looking for alternatives to typical live-music caught on, helping push these artists into larger clubs and thus acquiring a steady stream of Early Adopters. Eventually, DJ AM among others brought the genre to thousands with residencies in Vegas. Quickly pushing the genre up the Early Majority side of the curve. Today, EDM has found homes in most casinos, numerous festivals that dwarf anything live-music can match, and even terrestrial radio bringing the entire genre to the apex of the bell curve. Now, it is not uncommon to catch quality DJ’s in Nordstroms, restaurants, and even Whole Foods, which suggests the genre has not only peaked but actually may be moving into the Late Majority.

 

This does not mean that EDM is over. The bell curve representing this genre’s adoption is quite large compared to other musical choices such as, say, Texas Swing or even punk, which only lasted in the mainstream from about 74-84′. EDM’s start can be traced back to Jamaican dub in the 60’s with electronic music entering the mainstream in the 1980’s. This means that if we are in fact cresting today, in 2017, the genre has taken nearly 40 years to cover half of its adoption cycle.  Even if its fall is half that time, we still have a lot of booty shaking electronic bass to go.

 

However, as always in entertainment, the question remains.

 

What is next?

 

 

 

 

 

 

 

 

 

 

Volume…what makes a good entertainer GREAT!

Jeremy Larochelle

 

As someone who books bands for a living, I can’t believe I am going to say this. “Acts that don’t actively monitor their volume drive me nuts.”

 

There I said it.

 

Now, I am specifically speaking to the artists who perform in “background music scenarios.” Performance spaces in hotel lobbies, small bars, and restaurants that typically don’t focus on the entertainment (e.g. they don’t have a stage and dancing isn’t encouraged). In these situations, it is crucial that the artist pay careful attention to their volume as they are not the center of attention. Unfortunately, many newer performers have trouble grasping this concept and I believe that inexperience is to blame.

 

If you were to observe a veteran performer against a greenhorn in a similar environment, you will likely see what I mean.

 

Thanks to years of trial and error, veterans have been psychologically conditioned to accept the fact that they are not the focus of the room, which places them in the proper headspace to handle the gig. This comes through in everything from their song choice to their banter with customers and even how they read the room. As such, a true club pro will read a “background music” gig differently. If they see patrons leaning in too close to talk or notice the overall volume has increased. They will intuitively pull back the dynamics to restore order. The true masters will even alter their song selection choosing keys with darker…less bright characteristics such as D over E Major.  Notes that don’t conflict with the timbre of the average speaking voice and thus raise the overall decibel level in the venue.

 

As mentioned, seasoned pros typically fair better in these situations. However, other psychological factors come into play.  Artists still seeking the coveted “record deal” will have more trouble adjusting to these situations as their professional focus is to break through the noise and get noticed. As such, many have (rightfully so) adopted a mentality where they seek to command the stage and everyone’s attention. Chances are if an entertainer has more original tunes in their catalog than covers. They may be inside that headspace and the booker should enact more due diligence and proceed with caution.

 

A final word of warning is this. When vetting an act propositioning you for a gig. Many will say anything to earn the job and that includes telling you that they can meet any volume requirements.  It is always best to look beyond their puffery, especially if you notice that they are less-experience or more focused on the original music track of their career.

 

As for you artists out there. Don’t be discouraged by these gigs. For one, they can supplement your career and put food on the table.  They are also an excellent way for you to better your room-reading skills and ability to perform at softer volumes, thus increasing your overall dynamic control. These skills will come into play in other avenues of your career.

MBA’s – The Mad Scientists Behind the Scenes

Jeremy Larochelle

 

I don’t think many get it.

 

I know I didn’t ten years ago.

 

Maybe it is because the “MBA” has lost its luster, and in some ways it has. However, for those who have successfully completed the program. We seem to understand just what an MBA entails and the knowledge it provides.

 

MBA students study leadership, operations, corporate social responsibility, project management,  international business, and marketing among other areas. All subjects you could pick up with a general Bachelor Degree. What sets the MBA, a graduate degree, apart from its predecessor is the depths to which MBA students dive into each subject. And, surprise, it’s not just reading, but a whole lotta’ math folks.

 

Much like traditional scientific studies, MBA’s collect and categorize information, create their thesis, and try to disprove said thesis through mathematical analysis that includes algebra, calculus, and plotting lines on a graph among other things. Through this information, the MBA trained mind can tell McDonald’s that if they lower the price of fries by 12¢ soft drink sales will rise by 4%. Teach Target leadership how to calculate the optimal order quantities to reduce overhead costs associated with held inventory. Or Amazon executives where to place the best distribution center in Europe based on mileage, load weight, product lead time, taxes and physical coordinates among other data points.

 

As a society, we like to celebrate great entrepreneurs like Jobs, Page, and Bezos. All are of the genius caliber and have become brand names in their own right. They created something from nothing and rose from the ashes just like any great movie plot, which is probably why we gravitate to their stories.  However, at some point, these great leaders needed to onboard people who understood the science behind doing business to complete the left brain/right brain development of their global entities. Perhaps more importantly, by bringing on leaders to “run their business,” these great minds were able to focus on creating new products, entering new markets, or even exploring their own blue ocean opportunities. As a result, their astonishing leadership skills and the scientific training of their top-level managers birthed dominant public brands.

 

Before I attended college, I was an entrepreneur. I learned everything from accounting, marketing, customer service, and management while also developing and delivering our products and services “in the trenches.” It wasn’t until nearly ten years later that I picked up my MBA. Every day I wonder just how much larger my brand would have been had I known this science behind doing business and how it could have helped predict, prepare, and position us for astonishing growth beyond what we already achieved.

 

At that time, like many, I was uneducated in the value of an MBA. The mad scientists behind the scenes of business.

 

 

The Risk Entertainment Buyers Face

Jeremy Larochelle

 

My business card says agent, but truth-be-told, I am actually a buyer.  A buyer is slightly different than a booking agent in that we purchase entertainment for a particular venue. Booking agents generally have a list of acts they represent and spend their days pitching them to various venues and guys like me.

Buyers are hired for their entertainment expertise, connections, and ability to negotiate better deals for their clients. Those deals boil down to less money spent versus more money earned (relatively speaking of course). To get to that point, the buyer plays arbiter for all parties in the negotiation until the deal is struck. Unfortunately, sitting in the middle of said deal means that the buyer assumes the post of whipping boy should anything negatively impact the transaction before, during, and after.

In most negotiations, the risk is generally carried 50/50. If I have a contract to buy widgets from Johnny, LLC and I fail to pay. It is my phone that rings off the hook. Flip the script and Johnny forgets to ship my widgets in time. It’s his ringtone that gets overplayed. In a buyer-backed deal, they would sit in-between Johnny, LLC and the customer and get to deal with ALL of those calls.

Entertainers often overlook the risks buyers face and nowhere is it more evident than in their sales pitch. “Book our band…we have 1,900 followers on Instagram.” “Hire us for your corporate event…we really like Propecia. Come on!…what do YOU have to lose?” These statements tell us that somewhere musicians and bands are landing gigs on pitches like this. Most of the time, this happens with smaller venues whose entertainment is handled by an overworked bar or restaurant manager. Unfortunately, this has done a disservice to entertainers who want to move up the food chain and eventually deal with buyers like me.

I immediately ask potential acts to fill out our entertainer application.  It is a great litmus test to see if the artist is professional enough to follow directions.  It also forces them to write down the correct name, URLs, and contact information, which results in fewer errors. *Hint…this is one of the reasons YOU fill out your forms at medical practices.

Then, I check out their videos, social presence, other venues they have played, and even Google the band to see what comes up. If everything looks good. The next step is to go see the act live.  I have discussed this before in another post called Using A&R in Venue Management, so I won’t bore you with the details. (But check it out…it’s REALLY good… my mom says so.)

If all the stars align, I book them for one of our venues, but on a trial basis of limited shows. I can’t tell you how many times I have watched a great band in one venue completely falter in another. This is because numerous variables come into play including everything from the gear we use to the side of town we are on compared to that of the band’s home turf. I also talk about this in my post Listen Through the Show. Check it. My mom digs that one too.

Experience has taught me that these extra steps greatly mitigate the chances of a bad show in our venue.  And as a buyer, mitigating those chances is the name of the game, so if you are an artist looking for a gig. Be prepared.

  • Have live un-doctored videos on YouTube or Vimeo ready to share.
  • Have a social presence and use it to show that you connect with fans through lots of likes, follows, post interactions, and updates from your crew.
  • Have a list of your upcoming gigs readily available online. Sometimes, dudes like me have a few free nights and are looking to see a band we are interested in.
  • Be patient.
  • Put yourself in our shoes. If I didn’t know you. Would you book my act?  Now support that answer with a big fat WHY?

Keep in mind. Booking agents, buyers, managers, and the venues we work with absolutely want you to succeed. Simply put, we all make more money when you do. The best thoroughly vet their potential acts to make sure we can prepare you for that success. Work with them and your gigs will only get better.