Survey Finds: In-store Music Increases Sales Revenue
A comprehensive study conducted by Gema, a leading organisation responsible for over two million rights holders worldwide, has revealed that background music can positively influence customer behaviour and increase sales in retail and catering environments.
The Music Impact Study, spanning from September 2023 to November 2024, surveyed companies nationwide, including shops, restaurants, bars, DIY stores, kiosks, and cafes. The survey found that 76% of retailers agree that background noise is part of the experience, while 95% of participants in the catering industry concurred.
The study focuses on the impact of background music on turnover and its potential for targeted use in businesses. In retail, it was found that background music increases turnover by an average of 8%, with retail companies having an annual turnover between 100,000 and 500,000 euros potentially generating additional profits of between 8,000 and 40,000 euros per year through music. In the catering industry, the impact could be up to 27,000 euros for comparable turnover sizes.
Sonja Schönfeld, project manager of the Music Impact Study at Gema, stated that background music generally has a positive influence on consumer behaviour. She added that in retail, background music also increases employees' motivation and bond with the company. In catering, 68% of participants choose their music based on their guests' tastes.
The study provides empirical data on the direct value of turnover increase due to background music. It was conducted over a week with and without background music, with a week with background music showing a clear positive effect on customers' mood. In catering, 95% of participants agreed that background noise is part of the experience.
Klemens Knoferle, a scientist, looks to the future and sees new possibilities for the targeted use of music in the business environment. He emphasises the need for controlled studies with sales tracking and audio environment manipulation to quantify the direct impact on turnover specifically, as these vary widely by context and are limited in generalizability.
Gema represents the copyrights of its approximately 100,000 members in Germany, including composers, musicians, or lyricists. The most common types of music in catering are pop music and chart songs, while the types of music in retail vary depending on the store's atmosphere.
In conclusion, empirical studies show that background music can positively influence customer behaviour and increase sales in retail and catering environments. However, the direct impact on turnover requires controlled studies with sales tracking and audio environment manipulation. Despite this, the potential benefits of background music for businesses are clear, with the study demonstrating significant increases in turnover in both industries.
- The Music Impact Study revealed that the use of background music in retail environments can potentially generate additional profits for businesses, with retail companies having an annual turnover between 100,000 and 500,000 euros potentially earning between 8,000 and 40,000 euros more per year.
- Klemens Knoferle, a scientist, envisions new opportunities for the strategic application of music in business, emphasising the necessity of controlled studies to accurately measure the impact of background music on turnover, as it can vary significantly by context.
- Gema's comprehensive study highlights the benefits of background music in the business sector, particularly in the retail and catering industries, as it can positively influence customer behaviour and potentially increase sales.
