While the popularity of online shopping continues to grow, bricks and mortar stores are by no means a dying breed for retailers. NAB’s latest online retail sales index announced this month showed that in the 12 months to May 2014, Australians spent $15.3 billion on online retail which is equivalent to just 6.6 per cent of traditional bricks and mortar retailers in the 12 months to April 2014.
There’s still a very prominent place for traditional retail stores, but store managers must continue to innovative and think laterally to enhance the in-store experience and keep customers coming back.
There are several factors that can influence a customer from the moment they enter a store until the point of purchase – with music in particular playing a key role.
Music can be heard both consciously and sub-consciously, with the ability to motivate and up-lift retail staff and customers. It can keep customers in-store longer and put them in the right emotional state to make the decision to purchase.
Research conducted in the UK by music licensing company PPL showed that 51 per cent of customers surveyed said they would spend more time browsing in a store playing music, while 76 per cent agreed that they feel more relaxed in retail stores that play music. Additionally, music can increase productivity in the workplace, with 95 per cent of staff stating that in-store music creates a better working environment.
Retailers should look to music that reflects the character of their brand and appeals to their target market, but it should also be aspirational and ahead of the curve. Just because a song is popular in the charts doesn’t mean that it’s right in a retail or restaurant environment.
I often tell my clients that you won’t consciously notice the music when it’s right, but you will definitely notice it when it’s wrong.
Many businesses may not realise the psychological impact, yet the level and pace of music can have a sizeable influence on customer’s perception of a product, and how much of it they consume. For instance, soft, medium-tempo music can encourage guests to not only stay in a restaurant longer, but also to consume more in one sitting.
However, while the requirement for in-store music is paramount, many business owners are surprised to learn about the legal ramifications of playing music in-store without paying the relevant royalties or holding the required licences.
I am often surprised to learn of businesses playing a CD they have bought or running Spotify in their restaurant, without any qualms or understanding of the risk they’re bringing to their business.
All streaming services, such as Spotify, Rdio and Deezer, are for non-commercial use only. It is also illegal to duplicate music without the various reproduction licences required – so it’s not as simple as making your own playlist or CD and playing it in-store.
Even if music is purchased legally, businesses are still required to pay public performance royalties to APRA who represent the writers and publishers, as well as PPCA who represent the artist and record companies.
The ramifications for not adhering to these guidelines are costly and can potentially result in court proceedings.
Commercial business owners need to draw on a robust music service that provides the required licencing as part of its service bundle, and also provides store managers with flexible, customisable music playlists that align with the business’ brand identity and the demographic they’re aiming to attract.
Businesses should work with their music provider to create a unique audio signature for their brand, differentiating them from their competitors.
In my conversations with some of Australia’s leading retailers, convenience is a key theme in regards to an in-store music solution. That’s why at storePlay we provide customised three hour playlists to some of the country’s major retailers - including Sass + Bide, Hudsons Coffee, Virgin Mobile, Kathmandu and Kookai – with all royalty payments taken care of by our service. We take the time to understand the brand and image it aspires to embody, and then create programs that are truly authentic to the brand’s vision.
Yet, if business owners prefer getting things up and running almost instantly by themselves, they can simply sign up to storePlay, select the playlist that best reflects the shop's ambiance, download the storePlay app from the iTunes App Store, sign in and play. All the business requires is an internet connection and an Apple iOS device. Businesses receive three hours of new music every month that is 100 per cent legal to play in a retail or restaurant environment.
Music can play an incredible role in enhancing customer satisfaction, so retailers, restaurants, hair salons and any other commercial premises need to embrace music that resonates with their brand personality, and partner with a music subscription service that’s flexible and protects them from any legal issues.
Dean Cherny is the founder of storePlay
