DOES WHAT YOU PLAY AFFECT WHAT YOUR CUSTOMERS WILL PAY?

In competing for the consumer dollar, retail and hospitality business owners are turning to a variety of promotional mediums in order to raise the awareness of their business and products. Radio and television advertising, printed promotional material such as catalogues and storefront signage all playa part in attracting a customer's attention. -However, many business operators are also realizing that the music they play can attract passing customers into a retail outlet or alfresco dining area. In addition, the right music can keep your customers in your business longer leading to an increased chance of a sale or the purchase of additional items.

Creating image

In many organizations, the decision to use music and what type of music has become a key component of marketing and promotional strategies. Creating an image, identity or brand helps differentiate businesses competing in the same market. Businesses create an image or identity through decor, advertising and the nature of the services or products provided. One of the most cost effective ways of reinforcing image is by using music. Music reinforces and adds a new dimension to the image and impacts a customer's perception and experience.

Hiding unwanted noise

Music also has the ability to act as a masking agent in that it can hide unwanted noise from the back of the kitchen or store room. If your business is near a main road your customer's attention will also be influenced by the amount of noise coming from outside. Traffic or pedestrian noise, if not masked by appropriate background music, can make your customers feel rushed and distract them from the products or service you are selling. In hospitality businesses especially, background music provides your customers with a degree of privacy when holding conversations at the bar or dinner table.

Creating the perfect atmosphere

Having made the decision to use music in your business you should also maintain careful control of what type of music is played by your staff. The music you play in your business can impact whether customers chose to enter your establishment, how long they stay and their overall perception and experience. The music you play may be a determining factor in whether they return in the future or recommend your business to colleagues and friends.

APRA (Australasian Performing Right Association) has reviewed studies by researchers from around the world relating to the way in which music impacts business and consumer behavior. In addition to these international findings, APRA has conducted local research focusing on how music affects consumer behavior and perception. APRA's first research study measured the importance of matching music to the venue and the influence of music, including the style of music, in relation to a number of measurable outcomes. The results, as illustrated in the charts below, demonstrate that because music can impact customer behavior and perception, it can also impact customer spend. In this case, an informal mid-priced restaurant, more upbeat styles of music were better suited to the target market, ambience and atmosphere of the venue. Conversely, having classical or no music was negatively impacted customer spend. -

Number of alcoholic beverages consumed when particular musical styles are played (%)

No. of Drinks	Jazz	No Music	Classical	Easy	Control	Popular
				listening
None	14.6	10.0	24.4	16.9	15.5	17.1
1-2	41.5	63.3	64.4	40.7	42.3	45.7
3 or more	43.9	26.7	11 .1	42.4	42.3	37.1

Effect of music on the maximum price subjects were prepared to spend for a main meal.

		Easy
	No music	listening	Classical	Jazz	Popular	Control
Price	$17.12	$19.67	$20.20	$21.82	$21.01	$20.63

These findings clearly demonstrate that the use of music and how effectively it is matched to other marketing elements of a business can impact actual sales. In today's business environment, the benefits of using music are clear. Music's impact is immediate whether used as background in your restaurant or retail business or on the telephone for customers on hold. Music is a relatively cheap, but very powerful business tool and should not be overlooked.

Published by APRA AMCOS Australia December 2003

Clients benifiting from a taylored Kirby Productions retail sound system: