6 reasons your business needs in-store radio marketing
In-store radio: retail radio = marketing
What is in-store radio marketing?
In-store radio marketing is shop radio, or retail radio. All these terms mean a custom “radio station” just for your business. With your own “retail radio station” you can control the music played in your business. Think of shops, restaurants, hotels, gyms, casinos, offices or whatever business you have. Retail radio is an example of a small change with a big impact.
Music helps create the best possible shopping experience for your customers. Moreover, when customers are in a good mood, they spend more time and money. They return to your store and remember your store and your brand. In-store radio allows you to insert customized advertisements into your “station”. You can also inform your customers about how you can best serve them. You can also encourage them to take advantage of special offers.
Why does your business need retail radio?
1. Retail radio increases your turnover
Music as a whole has the power to increase your average sales. According to a study by HUI Research, playing a carefully curated music mix can increase sales by nine percent. When music is carefully curated and aligned with your brand, environment and overall vision, your customers respond. They react more positively and take action with their wallets.
In fact, companies that play random music even noticed a four percent drop in revenue, compared to total music silence, according to the same survey. The right music mix is therefore essential. Random music (such as turning on the radio on a popular station) is perceived by customers as noise, effectively driving them away. Carefully chosen music that fits your branding is therefore of great importance. It’s just as valuable to the experience as the products you sell. Or the staff you hire. This creates an atmosphere that customers appreciate.
So if you want more customers to buy from you – and spend more – get music that fits your brand.
2. In-store radio marketing influences customer behavior
Your atmosphere not only influences the purchasing behavior of customers. Music also influences shoppers and interaction with your brand. In one case, a wine merchant realized a 40% increase in turnover when they started playing classical music instead of a regular radio station. In addition, customers looked at more wines, asked employees questions more often and the average purchase price of wine was higher. The conclusion was that classical music evoked a ‘more luxurious feeling’ among the customers. This turned out to have a positive effect on turnover.
In-store radio makes customers spend more time in your store, ask questions and consider different products with your good choices. It’s important to take your music choices as seriously as other elements of your branding. Otherwise you will miss out on growing customer loyalty and your revenue.
3. Reduce perceived wait times
Another benefit of integrating in-store radio is the reduced perceived wait times that people experience when listening to music. Research has shown that the type of music affects how long your customers want to wait. Companies that played fast, happy music noticed that customers would wait longer. Meanwhile, companies that played slow music had more impatient customers than if they hadn’t played any music at all.
If you want your customers to wait patiently for you to help them, play upbeat, fast-paced music. The psychological effect is that they think they haven’t waited that long.
4. You prevent your customers from hearing advertising from your competitor
When the radio is on on any station, you run the risk of your customers hearing your competitor’s commercials. In fact, having been to YOUR store allows them to decide on the spot to visit your competitor’s store. You don’t want that! Therefore, retail radio is the perfect solution to this problem.
With retail radio you eliminate the risk that your competitor can influence your customers in your store.
5. Increase the average time spent in the store
Interestingly, this doesn’t mean you want to have fast music playing from the moment your customers walk in. Some companies especially want to reduce waiting times. Think of dental practices or car repair shops. Other companies just want customers to stick around, shop and enjoy their products. In this case, slower music is better for the brand.
Slower music causes people to move slowly through a store. They take the time to browse different items and departments. In one study, a supermarket found a 38 percent increase in sales when playing slow music.
When choosing your music, keep your goals in mind. What do you want from your customers? This determines how in-store radio can be used optimally.
6. Reduce stress among your staff
Music is not only good for your customers, but also for your staff. First, if your customers are calmer and happier because of the music choices, they are less likely to be rude or aggressive to your staff. This creates a more positive work environment. However, there are additional benefits to opting for retail radio. Studies show that 61 percent of employees listen to music to feel happier and more productive at work. And the best part is: it works.
Ninety percent of employees perform better when listening to music. In addition, 88 percent of employees are more accurate when performing tasks to music. Your employees will think faster, come up with better solutions and make fewer mistakes.
Although it is a complicated matter, based on these tips you can already start your own in-store music service. However, that is quite complicated and time-consuming if you want to do it perfectly. Flex Retail Radio is therefore happy to take the work off your hands. The use of in-store radio is an important added value for your marketing strategy. Do you want to know what we can do for you? Please feel free to contact us. We are happy to tell you more about the many possibilities, and if desired also help with the use of Retail Radio.
Author: Rene Visschers