How Music Can Increase Sales for Retail and Food Businesses

Heading 2

Industrial Psychology Focuses on the Workplace Atmosphere

Industrial psychology is a field that applies principles, theory, and research on the mind to organizations like businesses. Sometimes this field is called industrial-organizational (I-O) psychology. The field focuses on increasing worker productivity by improving their mental, emotional, and even physical wellbeing.

Understanding this field can help you, as a business owner, transform your workplace – whether it is a retail store, restaurant, or office – into a great place for employees and customers alike.

This will help improve your long-term sales.

There are six elements to I-O psychology.

Training and development
Employee selection
Ergonomics
Performance management
Work life improvements
Organizational development

Many businesses consider ways to properly train and manage their employees, measure performance, and grow the business, but one method to make work life better is through environmental changes. In establishments like storefronts and restaurants, environmental adjustments can make the experience better for customers as well.

One simple environmental change is the addition of in-store music. Numerous studies have shown that music improves mood, changes walking patterns and tempo, and can even increase productivity.

The Psychology of Music

Researchers in Finland and Helsinki published a study examining how people modulate their emotions with music to determine if some of these approaches could change and even harm mental health. There were 123 participants between the ages of 18 and 55, and the researchers found that, in some instances, listening patterns could harm mental health.

Mood Regulation & Music

Using the Music in Mood Regulation Scale (MMR), researchers evaluated how the participants tended to listen to music in a few categories.

Entertainment
Revival
Strong sensation
Mental work
Solace
Diversion
Discharge

The last three categories were ways that people tended to regulate their mood in both positive and negative ways. Solace involved finding music that matched emotional state, so they could feel understood and less alone – for example, listening to sad music when feeling sad. Diversion behaviors used music that did not match the mental state to change mood – for example, happy, upbeat music when feeling sad or anxious. Discharge used music matching emotional state to express emotions – for example, an angry song when feeling angry.

Understanding how people use music to change their mood, express their feelings, and enjoy or deepen their emotional state can help business owners like you improve the experience of your retail store or restaurant for both customers and employees.

How Music Can Influence Behavior

In 2023, researchers examined the tempo of music and its impact on more than 100 people. The participants wore headphones, and they were randomly assigned to hear music that was either fast or slow while they completed decision-making tasks associated with purchasing items.

The researchers found that people listening to fast music were more likely to seek variety, while those listening to slow music were less likely to do so.

Studies like this suggest that fast-paced music could entice customers to purchase unusual things and take risks. If your shop sells plenty of novelties and colorful objects, keeping the songs upbeat could be smart.

The Importance of Flexibility

However, in 2022, researchers published a study about music tempo preferences throughout the week. They interviewed shoppers about how the music made them feel, and they organized the responses by day of the week.

They found that when customers felt sluggish (as they might during the workweek), music helped them to feel upbeat and more likely to buy. However, on the weekends, music had less of an impact.

Studies like this demonstrate that the role of music can be nuanced and changing. That’s why it’s critical for business owners to monitor their customers in real time and change approaches that aren’t working.

What Aspects of Music Impact Sales and Customer Behavior?

There are three qualities of music that psychological studies have shown impact behaviors in stores or restaurants: genre, tempo, and volume.

The impact of these three qualities is measured with the pleasure-arousal-dominance (PAD) model, which posits that an individual’s mood can be altered by their environment.

Tempo

‍A 1982 study found that music tempo impacted shopping behaviors in grocery stores. The experiment found two important points. First, that slow music significantly increased the amount of time shoppers spent in the store; this led to the second point, a 32 percent increase in sales compared to when fast music was played. When the PAD model is applied, fast music is typically associated with higher emotional arousal, which leads to moving faster through the store.

In comparison, slow music leads to a slower pace and calmer atmosphere, so shoppers spend more time looking at items and likely purchasing more.

Another study in 1999 found that slow music in restaurants caused diners to spend more on alcohol and take more time eating. Fast music led to eating faster and more rapid table turnover, so diners waited less time to be seated.

Volume

An old study from 1966 examined the volume of music and its impact on how much time shoppers spent in stores. Loud music meant less time spent in the store, while soft music led to a more leisurely pace and more time in the establishment; however, the amount of time in the store did not correlate to an increase or decrease in sales.

Some research suggests that the loudness of music can change how people perceive the amount of time that has passed, but this is influenced by gender. Women experience less time passing with loud music, while men do not.

Another study conducted in 1988 found that shoppers’ age also impacted how music volume affected their behaviors. Young shoppers spent more time in stores when music was obvious, in the foreground, while older shoppers spent more time shopping with background music.

The researchers were unsure if this was specifically age-related or a difference in cultural attitudes between generations, but they did state that there is no one-size-fits-all solution to music volume. Instead, volume can be part of your consideration of your target audience.

Genre

‍The genre of music can be individually tailored to your store as well. For example, some studies have found that playing classical music in wine stores tends to increase the amount of money shoppers will spend on wine – not by purchasing more wine, but by purchasing more expensive wines. Christmas music played during the holiday season leads to an increase in purchases of holiday-themed items.

Mode

Additionally, a 2012 study examined musical mode and its impact on shoppers. Mode refers to the harmony of the song, and in Western culture, the major mode is typically associated with happiness while minor modes are associated with sadness or melancholy. The study found that tempo did not have an influence on whether the major mode conveyed happiness, but a minor mode with a slow tempo was perceived as more compatible and did more to increase sales than minor modes with a fast tempo.

Recall

A 2015 study also found that genre of music could impact the recall of menu items and which items were ordered. The study examined the memories of 120 Scottish students who were divided up into four rooms – one playing the American band The Beach Boys, one playing Chinese musicians The Peking Brothers, one playing Indian artist Sunidhi Chauhan, and the fourth had no music. The groups were given menus with cuisines from the United States, China, and India, and asked to recall as many items as possible from the list. They were also asked to choose one item as though ordering it. The music played in each room impacted the words that the participants remembered from the menu, and subconsciously encouraged them to order a menu item from the country whose music they were listening to.

Perceived Value

Another study with 180 Scottish college students evaluated how music could impact the perceived cash value of items. Using classical music, country music, and no music, the students were asked to identify 10 “social identity” products and 10 utilitarian products, and guess how much each cost.

The researchers found that classical music led groups to overvalue luxury items while country music caused them to overvalue utilitarian items.

The Bottom Line

Picking the right genre, volume, and tempo for your business can greatly influence how long customers stay in your store, how much they are willing to pay for certain items, and how positive they feel about the environment you have created.

Music Choices and Quality Impact How Everyone Sees Your Business

When you set out to start a business, you likely do a lot of market research to understand how your business can add value to the community. This research is an important tool to determine location and interior design for your store. You can also use it to help you choose what kind of music you should play in your store or restaurant.

It is also important, as a business owner, to make sure your store uses high-quality equipment like speakers and amplifiers to make the music as pleasing as possible. In addition, you must use music services specific to businesses. Fortunately, there are music streaming services that take care of licensing for you, so you can create the perfect playlist without worry about legal issues.

How to Get Music for Your Business

You know you need music for your business, but you're not sure what to do next. Two main options exist.

With both, you'll need equipment.

Receivers: A connected device picks up the musical signal and delivers it to your establishment.
Speakers: Well-placed speakers distribute the music evenly throughout the room.

With your equipment in place, it's time to make your musical choice.

Try the Radio

If your business is smaller than 2,000 square feet (or 3,750 square feet if you run an eating/drinking establishment), you can run a standard radio through fewer than six speakers.

You must use a local radio station (not internet radio), which means you'll subject your customers to commercials, including some from potential competitors. But this is the easiest, least expensive option.

Find a Partner

Many companies compete for your business. Most offer the opportunity to create playlists or pull from existing sets. These are popular options:

Legal Considerations for Music in Retail

Now that you understand how background music can increase sales for your retail store, it’s time to dig into the law.

Musical works are protected by U.S. copyright law, and performing rights organizations (PROs) typically manage them. Artists sign up with a PRO, and that organization creates contracts and accepts fees that allow retail establishments to play music without violating copyright law.

To play music legally in a retail organization, one option is to build a relationship with a PRO. Here’s how to do it:

Identify your PRO. Several of these organizations exist, including BMI, ASCAP, and SESAC. If you have a specific song or artist in mind, run searches on sites like YouTube or Google to find out which PRO you should work with.
Contact the PRO. Most PROs have robust websites. Find the appropriate site and look for sales or contact information.
Explain your environment. Most PROs set pricing by industry type and audience size. Explain your organization in detail, and ask how much a contract will cost.
Make it official. The PRO will send you a contract and your first bill. Sign the document and pay your fees.

A contract with one PRO doesn’t allow you to play any songs you like. Ensure that you’re only playing songs protected by your specific PRO. Most companies have players and portals that ensure you’re not playing unlicensed music.

How to Select the Right Music

We’ve explained how background music can alter the way customers feel and how they might react within your retail environment. Now it’s time for you to pick the right songs to share.

These tips may help:

Consider demographics. Does your business serve young people? Modern music might please them. However, does your business serve older people? They might like songs that were popular when they were young.
Identify your ideal atmosphere. Does your retail environment exude charm and class? You might appreciate classical or jazz songs. If your retail outlet is playful, you might appreciate pop or dance tunes instead.
Identify dayparting opportunities. If you’re open several hours per day, your customers might appreciate a shifting selection of songs. For example, fast-paced songs might help them feel awake in the morning, while slower songs might help them relax in the evening and linger in your store.

Create a playlist, and launch it in your retail environment. Ask your customers how they feel about the songs, and poll your staff, too. Be ready to change things if they’re not working.

Music for Retail & Food Businesses FAQs

Why is music important to retail?

You want customers to come in, linger, shop, and purchase. The right playlist makes your organization an inviting space where people want to spend both time and money.

An up-tempo beat keeps them moving along and smiling, while down-low sounds encourage contemplation and lingering. Mix up the two, and you'll pull people in and entice them to stay with you for a long, enjoyable visit.

Can music help sales?

Of course! We've all entered a shop playing such wonderful tunes that we want to linger. And we want to reward the shopkeeper for creating such a great experience, so we make a purchase. Track your sales and ask your customers to ensure that you've met their musical needs with the right mix of tunes.