Shopping tunes boost retail earnings, survey finds
In a groundbreaking study led by Sonja Schönfeld, the Music Impact Study has shed light on the potential benefits of background music for businesses. The study, which surveyed over 200 companies nationwide in Germany, aimed to investigate the direct value of increased turnover due to background music.
The study, conducted from September 2023 to November 2024, involved participating companies playing music for a week, followed by a week without music, allowing for a fair comparison. The results revealed that background music can significantly influence customer behaviour and sales.
In the retail industry, the study found that background music increases turnover by an average of 8%. This could potentially translate to additional profits of between 8,000 and 40,000 euros per year for retail companies with an annual turnover between 100,000 and 500,000 euros.
The catering industry also saw a positive impact, with background music increasing turnover by an average of 5.4%. For comparable turnover sizes, this could potentially result in additional profits of up to 27,000 euros.
Interestingly, 76% of retailers agree that background noise is part of the music experience, while in the catering industry, this figure is even higher at 95%.
Scientist Klemens Knöferle suggests that these findings open up new possibilities for the targeted use of music in the business environment. However, it's important to note that the study does not provide direct empirical evidence from GEMA in Germany on the impact of background music on business turnover.
GEMA, a collective rights management organization primarily known for licensing music usage and collecting royalties, was involved in the Music Impact Study. Worldwide, GEMA represents more than two million rights holders, including composers, musicians, and lyricists.
When it comes to music selection, 68% of caterers choose the music based on their guests' taste. The most frequently played genres of music are pop music and chart songs, followed by rock and Schlager music.
Background music not only influences customer behaviour but also seems to have a noticeable positive effect on the mood of customers in retail. Moreover, it increases the motivation of employees and their loyalty to the company.
In conclusion, the Music Impact Study provides valuable insights into the potential benefits of background music for businesses. While specific empirical evidence from GEMA in Germany on this matter may not be readily available, it's clear that background music can play a significant role in enhancing the customer experience and potentially boosting sales.
The Music Impact Study, in its exploration of the business environment, also delved into the finance sector, demonstrating that background music can potentially increase annual profits by thousands of euros, especially in industries like retail and catering. Furthermore, the study suggests that the strategic use of music, guided by customer preferences, could positively impact employee motivation and loyalty.
