Music Consumer Segmentation From Lagging Indicators To Leading Indicators
The 20,000 Foot View
Consumer music behaviour, tastes and attitudes vary dramatically. The ability to delineate discrete segments is crucial for targeting music services and for artist marketing. Over the last half decade the music industry has come to understand importance of consumer segmentation in understanding music fans and buyers. But the streaming-driven shift from ownership to access is forcing a rethink in segmentation. Paying for music has become a lifestyle choice but is not always defined by consumers’ personal values and opinions.
- Based on their music behaviour (spending and listening) consumers can be grouped into four key segments: Aficionados, Collectors, Forgotten Fans and the Passive Majority
- Music Aficionados are the heartbeat of recorded music revenues, spending every three months and listening hours a weekAficionados represent of all music subscribers
- Forgotten Fans are the untapped opportunity, representing of all consumers and with above average listening time but below average spending
- Behavioural segmentation is a lagging indicator, showing how people act currently. Attitudinal segmentation is a leading indicator, exposing what is likely to happen
- When Aficionados are defined by their attitudes rather than behaviour they become the single largest segment, representing of all consumers