Industry Insights: How NAMM Members Are Approaching Data, GenAI and Customer Experience

By Pete Johnston | June 10, 2024

Data collection and AI are hot topics for businesses that are trying to deliver the best possible customer experience. How are companies within the music products industry faring when it comes to leveraging data and AI, especially for understanding changes in customer buying preferences? Also, how do their efforts compare to other customer-facing industries?

We sought those answers in our 2024 commissioned study, conducted by Forrester Consulting on behalf of NAMM. Both music industry and outside-the-industry business leaders shared about their data collection practices, their use of generative AI (genAI) and their approaches to tracking and improving their customers’ experiences. Below are some of the study’s high-level takeaways. You may purchase the full report to access all of the insights.

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Industry Insights: A Study On Customer Experience In The Age Of AI

Music Industry Companies See the Value of Leveraging GenAI for Improving the Customer Experience 

In our age of AI, music industry companies are aware of the great potential of technology to improve their customer experience strategies. Companies surveyed, including music retailers, manufacturers and distributors, believe genAI will allow their organizations to increase the power of their customer data. The optimism around uses of genAI is further revealed by respondents’ belief that genAI can provide better data insights that can be leveraged to improve selling productivity, reduce costs and increase marketing ROI.

Confidence Is High in Organizations’ Abilities

A third of survey respondents said they feel confident in their organization’s ability to predict and adapt to changes in customer behavior and needs; and companies outside the music industry reported higher confidence. While organization confidence is high, other surveys indicate that consumers report a much lower satisfaction on personalized experiences. 

Music Industry Companies Are Behind the Data and GenAI Practices of Other Industries

Compared to surveyed companies in other industries, music industry businesses are behind when it comes to more complex data collection practices and use of AI. The companies surveyed said that they most commonly collect customer-provided data, but these are not the most effective types of data for accurately predicting how customers’ buying preferences change. Other data collection methods provide better insights, but music product organizations surveyed have far lower collection rates.

Join Our Exclusive Webinar on June 20 

Everyone who purchases this report will have access to an exclusive webinar on June 20, where NAMM President and CEO John Mlynczak will provide an in-depth analysis of the report’s findings. This webinar will also be recorded and made available for those who purchase the report.

For more NAMM Industry Insights reports, visit our Industry Insights page.

About the Author

Pete Johnston is the director of marketing for NAMM. Johnston is a music industry veteran with decades of experience in marketing, design, production and communication. He also is the executive producer of the NAMM TEC Awards which recognizes the individuals, companies and technical innovations behind the sound of recordings, live performances, films, television, video games and multimedia