How Retail Stores Turn Music into Money
by Brayden Napoli
From local businesses to international franchises, music has become an integral part of the shopping experience. Walk into Target, Costco, or Walmart and you will hear music—if you are actually listening. Otherwise, the soundtrack of the store has a much more subliminal presence—but that may make it even more powerful. Indeed, its influence on shopping patterns and spending habits is more far-reaching than one might think. Music can keep customers in-store longer, drive impulse purchases, and more.
When it comes to using music as a means of unconscious advertisement, simplicity is key. The music of the store should target the emotions to be elicited in the customer and should have a unique character fitted for the environment. This is because the actions of in-store shoppers are heavily reliant on the human sensory experience. For a customer to leave the store with a bag in their hand, the sensory experience often needs to approach near-perfection. Thus, it is important to fit the proper music to the moment.
For instance, retail brands associated with elegance and wealth, such as jewelers or designer shops, often incorporate classical music into the soundtrack of the store. This makes sense, as classical music has been proven to enhance a customer’s impulsive spending habits on expensive items. The high-class association of classical music leaves customers in a wealthy state of mind. In turn, customers feel more qualified and invited to make expensive purchases, therefore increasing the profit of these stores. Furthermore, the inclusion of other types of music, such as hard rock or R&B would be counterproductive. These types of music are unimaginable in a luxury setting, and research shows that the wrong music actually decreases a customer’s desire to buy.
Brands must acknowledge music as a means of advertisement, but that is only the first step. Further research on the consumption of this music by different demographics and the ultimate application of this music is where retail stores gain the extra edge. It is well-known that demographic distinctions are a prevalent topic in the marketing industry. Age is one of the strongest indicators of a consumer’s shopping habits and is a worthy predictor for a store’s success. It is easy to use specific genres, artists, and albums of music for distinct ages of customers. Even details such as the volume of the music can play a role in the demographic mood: younger people tend to prefer higher volumes, whereas older people prefer softer ones. Age is not the only demographic of interest, though, as a retail store’s revenue is also strongly determined by geography, ethnicity, education, and income, among others (see here). All of these seem like common knowledge, so how is music uniquely catered to these demographics to boost sales?
Retail stores do an incredible job of visually dividing their stores, which directs certain demographics to separate areas. Most customers are aware of this organization and appreciate the clarity in aiding their experience. Most do not recognize the purposeful shift in the soundtrack of the store, however. A team of researchers from Washington State University looked into this phenomenon specifically and were able to conclude that area-specific music choice, or zoning, yields longer shopping trips and increased spending, on average. Given that mood has an influence on a customer’s time in the store, items bought, and money spent, retail stores will do everything in their power to manipulate the variables that lead to a happy customer. Most of this manipulation will come in forms unrecognizable to the average customer, meaning retail advertisers are doing their job correctly. By switching the music based on the zoning of the store, retailers can subconsciously lift the mood of their customers. This results in boosted sales and satisfied shoppers, as evidenced by research displaying experimental confirmation of these hypotheses.
Using the mix to shape the mood is a simple concept on the surface level, but how hard is it to implement? In a recent article by CNN Business, the idea of mixing music for the mood of the store is analyzed, with insight from top retailers and playlist companies. Danny Turner, a well-known DJ of the industry, knows that “‘music can influence shopper behavior and help brands create an emotional connection with their customers’” The process for him is exciting, and he and his team work hard with individual locations to cater to the music choice. He feels the selection of the music can be a crucial process for stores because what is chosen to not be played can do more harm than expected. As the holiday season approaches too, music becomes increasingly important as the narrowed variety can leave many annoyed. The work of Turner and many others are vital to finding the right soundtrack for a store at all times as they take the pressure off managers who may inadvertently lose money with the wrong choices.
Still, some retailers choose to take the issue of auditory advertising into their own hands, including Walmart. What better example of retail success is there than Walmart, known for their international commitment to an affordable and efficient shopping experience? Walmart employs the use of their own radio as background music in their stores. The diverse array of music on “Walmart Radio” appeals to nearly all audiences, increasing revenue through a boosted emotional mood in customers. Additionally, Walmart’s expansion of their radio to include customer interaction, where anyone can “call to request a song or give a shoutout on air,” turns shopping from a necessary chore to a therapeutic experience. The conversion of shopping from a necessity to an experience is a crucial step that retailers must take to turn strangers into customers. Proper background music is the stepping stone to forming a connection with the customer, and brands like Walmart are paving the way for the retail industry to follow suit.
Music dominates the modern world, with artists like Dua Lipa, The Weeknd, and Taylor Swift revolutionizing the music industry. Young adults are much of the target audience for these performers, so hearing their songs in stores indicates intention. Stores purposefully play more music from these performers, a trend that correlates strongly with the data illustrating young adults as the most avid listeners to music, among all age groups (see figure). Since retailers are aware of the high percentage of young adults listening to music, their music choice in-store reflects the broadest demographic, yielding a higher average return in revenue. Tactics like these are what separate profitable retailers from others, proving the power of music in real life.
Undetectable, purposeful advertisement to the ears–that is all the soundtrack of stores is. Yet, it is a fascinating concept that is often unnoticed. Retail stores have nearly perfected this art of auditory advertisement, and brands like Walmart are leading the way, turning demographics’ musical preferences into money. All of this, though, is a part of the experience that has become in-person shopping. What was once a chore is now an experience as customers feel the power music has to consciously and subconsciously sway our emotions. So after all, there is a method to the madness, it just lies in the mix that fits the mood, and that is the soundtrack of life.