Creativity and innovation can be found in unlikely places. For instance, who would think that icon of the counter-culture, the Grateful Dead, would provide a business model?
The band had only one Top 10 album, but for 30 years drew thousands of fans — Deadheads — who followed the band from city to city. Last summer, 20 years after lead guitarist Jerry Garcia died, the band grossed more than $60 million in what it billed as its last stand — five sold-out shows.
So what does that kind of customer loyalty tell today’s managers? One of the keys, say those who’ve studied the band’s model, is that the band nurtured its culture, building a loyal community. The band, for instance, encouraged fans to tape its live concerts, which allowed the music to go viral before viral was a thing. It made its money from ticket sales, not album sales, turning the traditional rock music model on its head.
You can learn more about the band’s model in the book “Marketing Lessons from the Grateful Dead: What Every Business Can Learn from the Most Iconic Band in History” by David Meerman Scott and Brian Halligan.
As Felix Contreras wrote for NPR.com last summer, the band’s inclusive, respectful attitude paid off, winning fans over a span of 50 years. Might there be a management lesson in that?