The Music Man: A Q&A with Live Nation CEO Michael Rapino

One venue, I think it was in Hartford, seemed to have a lot of fans complaining about the way we were directing traffic. We got that to the general manager, and he instantly changed the way we were bringing traffic in and out of the venue to speed it up. A lot of the complaints were about the lines at the beer stands. Now we walk around with beverages and hawk them so you're sitting in your seat and don't have to get up. Sounds simple, but we've got a lot of basics to fix still. We hired a team and a senior executive to really look at everything we're doing in food and beverage and how can we provide better variety and better pricing. Every city's got a famous rib place or coffeehouse or dessert place. We let them set up shop to provide better variety around their brand power instead of generic hot dogs and drinks. Believe it or not we never used to serve energy drinks. This year we cut a deal with Monster and put them all in our venues. We have the on-site upgrade now too. If you bought a lawn ticket at our amphitheater, we'll now go right on-site and say to you, "Do you want to buy an upgrade to a reserved seat if we have capacity?" If they were already invested in the day and maybe didn't know about the reserved seats or maybe it wasn't what they wanted to buy at the time, why wouldn't we make it easy for them to say, "I'm here and I'm now passionately involved and I want a better seat"?

How else do you use customer data in new ways?

We did an upgrade program called the Guest List. Because we now have a database, we were able to go in and say, "We've noticed that you haven't bought a ticket for a show in an amphitheater this summer, but you came last year. You're a valued customer and we'd like to give you one free ticket to come to a show, knowing that you're probably going to come with somebody." It was a great way of bringing back a casual buyer. We're doing more consumer segmentation. We know that the average fan went to one or two shows last year, and the avid fan went to five. We know 30% of the population attended a live show. Who are they? What's the commonality between the teens and 40-year-olds? What else do those fans want to consume? How about the fans who didn't go? Do they want to buy a copy of the live show? We just started Live Nation Studios, which turns our venues into a studio. We're wiring our 150 venues to record shows. We haven't given fans a lot of options in the past. But that's changing.

How often do you go to shows yourself?

I went to three last week when I was in New York: Shakira on Monday, the Rolling Stones on Wednesday, and Eric Clapton on Thursday. I probably go to 100 shows a year. It's truly the best place to go see my full staff. And if I'm going to talk the talk, I've got to walk it. I come in the next morning and tell my staff, "I waited too long in line" or "Why did it shut down so early?"