To survive in today’s competitive environment, most businesses understand the importance of finding the most efficient and effective ways to engage their customers. That often requires an increased level of personalization for each customer. But how can small or medium sized stores, particularly franchise businesses, do that at scale with limited marketing resources? They must start strategically thinking about providing the best in-store experiences.
One area that’s often overlooked is the auditory experience customers have while in a store or business. Music can put customers in—and quickly take them out—of the moment. That likely isn’t a big surprise. After all, 91% of business owners believe that playing music makes staff and customers happier. However, how many included in that large percentage are using that music to its best business advantage? Not nearly enough.
The in-store music experience, coupled with on-demand announcements, can be just the solution when looking for ways to increase customer basket or sales size, drive enrollment or registration for events and reward programs, and also share information about specials and community initiatives. Here are just a few ways music and messaging can impact a business’ bottom line, along with a few real life examples of how it’s already working:
How Audio Can Have a Major Impact
Some think that music and announcements that play over the speakers of a store are just “noise,” but they’re mistaken. Research conducted by Vision Critical among 1,000 UK businesses and Entertainment Media Research among 2,000 UK consumers found that 63% of small retailers agree that playing music encourages customer to spend more time in a store. 72% of people who like music in-store say a shop playing music is more inviting, while 76% of small retailers believe they can positively influence the behavior of customers through music. Imagine being able to influence customer behavior—not just through price and product quality—but by offering a more personalized customer experience through custom in-store music.
It is likely that the ideal customer for a specific store also has a targeted style of music they prefer. In fact, 67% of shoppers who recall hearing music during their most recent shopping trip identified the music as being programmed specifically for the retail location as opposed to the shop simply blaring a local radio station. Plus, imagine playing that local station and airing an advertisement for a competitor’s offer that sends a potential customer out the door. Instead, why not utilize that passive experience to benefit the current shopping experience?
The Proof is in the Sales
In the world of business, there are plenty of priorities that require time, resources, and, above all, money. Thinking that devoting any of those to customized in-store music experiences or on-demand announcements may not seem like a priority. However, many customers are finding that it not only brings in enough sales to be a positive return on investment, but it helps to create a better overall customer experience.
A recent article in RetailWire found that, out of those who noticed in-store music, 40% will stay longer in a shop if they feel the music is well-chosen for the environment. A customer survey at Jiffy Lube found that 60% of customers heard the messages and 90% enjoyed the atmosphere.
Case Study: How Dairy Queen Drove Immediate In-Store Demand
But what about the sales numbers? An Indianapolis area Dairy Queen franchise may have something to add. While Dairy Queen Corporate, a global fast food company, provides local franchisees with marketing materials, this specific store location prefers doing more personalization for their customer base in the form of an annual Valentine’s Day dinner. While the dinner has seen moderate success in past years, this year it began using in-store, on-demand announcements about the dinner, and the event sold out in record time. Customers at their tables were even making reservations immediately after hearing the announcements. By not using custom messaging over their speakers, this Dairy Queen was—almost literally—leaving money on the table. By simply finding better ways of educating customers on new products and offers as they become available, this franchise found a new and easy way to make a profit.
The Customer Experience is King
VisionCritical estimates that, by 2020, customer experience will overtake price and product as the most important key brand differentiator. For nearly any business, using custom licensed music to create a superior in-store audio experience is a great way to promote unique events, offerings, and specials in a way that is non-intrusive but impactful. It allows businesses to push products faster while increasing the revenue potential for every customer or drive customers to a website for coupons and promotions. These tactics—particularly alongside a customized playlist—provide an improved, potentially highly profitable customer experience.
Interested in learning more? Request a demo of Vibenomics today and learn how you can start dayparting your music and in-store announcements.
Once upon a time, not that long ago really, getting gas for a vehicle looked much different. Gas pumping has progressed from having an attendant pump the customer’s gas, to customers going into the store and asking for “$20 on pump two,” to today’s pay-at-the-pump technology.
While that’s been a great time saver—the average convenience store fuel customer spends 5 minutes or less filling up a gas tank—it certainly cuts down on the potential for in-store sales. A few customers may venture in and pick up an item or two, but the vast majority pump gas, replace the gas cap, and drive on. In fact, 300 people visit a convenience store’s gasoline pumps a day, but only 35% of those customers step foot inside the store, according to industry experts at Convenience Store Products.
One of the toughest nuts to crack for gas station convenience store marketers is how to pull those customers from the pump to the store. Finding effective and convincing ways to move the in-store needle can make a huge difference for a business’ bottom line. Take those 300 customers mentioned above. If 35% are going in the store, that’s 105 customers. If each of those customers spent even just $1, that’s an extra $105 per day—or over $38,000 per year.
So, how can marketers find ways to convert gas pumpers to in-store purchasers? Here are a few potential methods that may help out.
Loyalty programs are a great way to motivate those members to stay true to the brand, thereby increasing the visits they make as well as their spend. However, if the reward program is going to work, it must be of value to the customer. Something like a free cup of coffee or lower-margin food item on the fourth visit or earning points that can be used towards a gas card can make a customer feel like their participation is valuable to them. It can also be a key way to get already-loyal customers in the doors of the store. While they are redeeming that free cup of coffee, make sure the fresh donut display is close by or the grab-and-go breakfast items are shown off.
Credit card processing fees are a big pain for any small business. Some gas stations have taken to eliminating that specific pain point by offering special discounts on gas prices for those customers who come in the store and pay cash. According to a study by Cardtronics, cash transactions still make up 63% of all convenience store purchases. Also, a report by NACS says that 23% of surveyed gas consumers primarily use cash to pay for their fuel. Offering a discount for those who pay with cash can not only take care of credit card fees, but can also get more customers—who already are shown to use cash for convenience store purchases—in the door with cash in hand.
Customers are already at the pump and tend to be a captive audience. Why not take advantage of that and incorporate at-the-pump audio announcements? While digital displays and signage can certainly help, more often than not, the customer is looking around or is on their phone and may not see it. Using audio helps to ensure they know about the special two-gallon milk price or the daily deal on coffee and a pastry. Marketers can even work to daypart those announcements to hit key customer needs at certain times. For example, that coffee and a pastry deal? Great for the morning. But a pizza or a dinner item would better attract an evening commuter heading home.
No matter the business, the more pleasant the customer experience, the more likely they are to keep returning. This is just as true for convenience stores. Making the experience enjoyable by creating a great in-store vibe can keep customers coming in again and again. Create a playlist that appeals to the target customers, keep merchandise fresh and expertly displayed, and always keep things tidy. Also, make sure to keep customer wait times down, no matter what the time of day. Above all, keep the “convenience” in convenience store.
With the right in-store vibe and at-the-pump marketing tactics, customers will be much more likely to make their way into the store the next time they stop to grab gas. It just takes some planning and creativity along the way.
Interested in learning more? Request a demo of Vibenomics today and learn how you can start creating on-brand music and messaging for your in-store customers.
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