Increased sales linked to in-store music, according to a survey
In a groundbreaking study conducted by the Munich-based music rights organisation, GEMA, it has been revealed that background music significantly boosts sales and revenue for businesses across various sectors in Germany.
The Music Impact Study, which surveyed over 200 companies, including retail outlets, restaurants, bars, hardware stores, kiosks, and cafes, found that the use of background music increases sales by an average of 8% in retail and 5.4% in gastronomy. This translates to potential additional profits of between €8,000 and €40,000 per year for retail businesses with annual turnover between 100,000 and 500,000 euros, and up to €27,000 for similar-sized gastronomy businesses.
Sonja Schönfeld, project leader of the Music Impact Study at GEMA, stated that there were previously no empirical data on the direct value of increased sales due to background music. However, the study's findings suggest that businesses generate an additional €17.5 billion annually in revenue through the use of background music.
The study, which was conducted from September 2023 to November 2024, compared one week with music and one week without in the same establishment. The results showed that background music not only enhances customer experience but also boosts employee motivation and loyalty.
Interestingly, pop and chart hits, followed by rock and Schlager music, were the most popular genres in the surveyed establishments. Furthermore, 68% of restaurateurs choose music based on their guests' preferences, which encourages customers to stay longer.
Klemens Knoferle, a scientist involved in the study, sees new opportunities for targeted use of music in business environments. He believes that this research opens up a wealth of possibilities for businesses to optimise their music selection for maximum impact on sales and customer experience.
GEMA, which represents the rights of around 100,000 members in Germany, including composers, musicians, and lyricists, has established itself as a leading authority on the economic benefits of background music. The organisation, which is responsible for over two million rights holders worldwide, is recognised for quantifying these benefits in the billions of euros annually.
In conclusion, the Music Impact Study by GEMA provides valuable insights into the significant commercial value that background music adds to various business environments. By enhancing customer experience and potentially increasing sales, background music is a powerful tool for businesses seeking to optimise their operations and drive growth.
The Music Impact Study by GEMA offers a fresh perspective on the potential of background music as a lifestyle factor, contributing to increased sales in various business domains such as retail shopping and gastronomy. With potential annual profits ranging from €8,000 to €40,000 for retail businesses and up to €27,000 for comparable gastronomy enterprises, the strategic use of music can significantly impact a business's bottom line.
Moreover, the study highlights the role of music in entertainment, as it not only amplifies customer experience but also boosts employee motivation and loyalty. Businesses might consider tailoring their musical selections for maximum sales and customer satisfaction, following the trends observed in the study, where pop and chart hits, along with rock and Schlager music, dominated in surveyed establishments.
