In a recent NPR interview titled Kid Rock Takes On The Scalpers Robert James Richie (aka Kid Rock) talked about scalpers, ticket prices, and how (and why) he is trying to eliminate the secondary market. Despite the title, what he was really talking about was the customer experience.
Kid Rock most emphatically wants to make money but believes the path to higher profits comes through deeper relationships with his fans, not higher ticket prices. A couple of quotations illustrate the dynamic:
“If you give people a fair price, I think they’ll feel better about spending their money”
“They might spend just as much because they don’t feel like someone is trying to get one over on them.”
His premise, like that of other customer experience practitioners, is that when customers value an experience they are more likely to purchase more. Keeping prices low helps drive customer loyalty higher.
- Positive Word of Mouth (WOM) – Fans/customers tell others customers about the reasonable prices. So attendance goes up. He knows that fans also gripe about excessive prices… negative WOM.
- Customers Willing to Pay More – Kid Rock expects his fans to spend their money on other things, not just the tickets. His share of wallet goes up when customers are satisfied.
The pivot point is that by understanding your customers and providing value to them, you can improve loyalty and profitability in tandem. It’s not often that I think of Kid Rock and certainly not in the context of customer experience. This interview proves it’s time to change my tune.