How Will Fender and Bluecore Shape the Musical Instruments Industry?

Bluecore has announced a new partnership with Fender Musical Instruments Corporation to enhance customer growth and retention. As a leading guitar manufacturer, Fender selected Bluecore for its expertise in retail shopper identification and customer movement technology. This partnership aims to create lasting value for Fender’s diverse customer base and extensive retailer network.

According to its official website, “Fender was founded in Southern California and has established a worldwide influence that extends from the studio to the stage — and beyond. Everyone from beginners to the world’s most acclaimed artists have used Fender instruments, amps and gear, making the company not only a revered industry leader but a cultural symbol that resonates globally.”

Bluecore’s platform empowers enterprise brands to enhance revenue by transforming unidentified shoppers into recognized customers and seamlessly moving them through the buying journey. Utilizing real-time product insights and predictive analytics, retail marketers can automate instantly timed, tailored communications across multiple channels, eliminating manual tasks. Currently, Bluecore works with more than 400 brands to improve customer loyalty and foster growth.

“Our approach to identification and customer movement means that Fender will have the ability to recognize each individual shopper and customer, understand their individual affinities, and automate the right experiences. Our strategy will deliver long-term value as well as the flexibility to meet the needs of their customers and partners in a way that aligns with specific near-term objectives.” 

Jason Grunberg, CMO at Bluecore, via Bluecore press release

Key highlights of this partnership include:

• Purpose: To drive sustainable growth and enhance customer engagement across multiple channels.
• Bluecore’s Role: Utilize its “Customer Movement” approach to recognize individual shoppers, understand their affinities, and automate personalized experiences.
• Fender’s Objective: Balance growth through customer retention and reactivation, building on the sales surge since 2021.
• Implementation: Bluecore will increase digital identification, retention, reactivation, and purchase frequency. The initial launch was completed in four weeks, with additional program augmentations planned.
• Strategic Impact: Bluecore’s integration will leverage customer insights combined with Fender’s product data for more effective marketing, aiming for immediate revenue impact.

Jonni Murphy, director of CRM at Fender, praised Bluecore’s strategic analysis and optimistically described the benefits of the partnership. “We are pleased to partner with the Bluecore team, aligning closely around our growth objectives,” she said. “In our evaluation process, Bluecore’s strategic analysis and its suggestions for increasing customer engagement demonstrated their deep understanding of our business and their focus on identifying opportunities for sustainable growth.”

Fender has also been on a high note recently after a slew of new product releases. It has launched the Player II Series, revitalizing its mid-priced electric guitars and basses with new features. This series marks the return of rosewood fingerboards, a welcome addition that hasn’t been seen on Fender instruments at this price point for some time.

Moreover, the brand has introduced the Telepath, a micro-sized wireless system designed to address common wireless guitar issues. With eight hours of battery life, multi-instrument pairing, and cable tone simulation for a natural feel, the Telepath aims to be essential for gigging guitarists, allowing them to move freely on stage without the hassle of cables.

A recent study by Technavio reports that the global guitar market is projected to grow by $1.84 billion from 2024 to 2028, with a CAGR of over 7.02%, driven by the rising popularity of music-related activities and the increased ease of getting products through online retailing.

Factors fueling growth include expanding music education programs, a thriving online retail environment, and demographic trends favoring rock and live music. Social media has contributed as well with influencers, online tutorials, and reignited interest in various music genres.

Challenges to manufacturers like Fender include competition from various platforms and changing consumer behavior. Since guitars are usually judged by their materials, quality, and craftsmanship, there might be concerns about the sustainability of wooden guitars. Furthermore, the long replacement cycle of guitars poses a looming hurdle for manufacturers. Wooden guitars usually last a decade, while electric guitars are expected to last twice, if not three times, as long.

However, as music brands such as Fender successfully sell directly to consumers, musical instrument retailers like Guitar Center may continue to see challenges in regard to selling products and remaining in business.