Category Archives: in-store music

How catering franchises change the world

As I have travelled around the world, I’ve become an observer of retail food franchises and the way they perform when they are a long way from home.  Catering franchises are among the most potent brands we have.  Customer loyalty can be the strongest you’ll find in the retail sector and the emerging capacity of some brands to develop their brand communities is only going to enhance that.

These brands change the communities in which they reside just as the individuals that join any brand community changes that a little by bringing with them new character traits and values.  Restaurants like McDonald’s and KFC have changed countries and lesser retail food brands do the same to a lesser extent.  Today I made my second visit to what is fast becoming one of my favourite restaurant chains Tony Roma’s and as I sat there listening to The Eagles’ Hotel California I considered the impact they are having on the local community.  Quite significant I believe, because this is Saudi Arabia, where music is banned in any public place.

Here Tony Roma’s is a franchise run by a local Sheik already heavily into retail.  Clearly he is rather more progressive than others of his countrymen and though I don’t know him I am sure he must be a controversial figure.  Although Tony’s famous pork ribs were conspicuously absent from the menu the music isn’t the only taboo he is breaking.  Restaurants in Saudi Arabia are segregated.  Single men sit in one part and families and women on their own sit behind impenetrable screens in a separate part of the building.  They usually even have different entrances.  I’m not sure how this is supposed to work.  I guess it’s something to do with women not being able to eat through a veil and men not being allowed to look at a woman who isn’t wearing one, but, like many things in this country it is a mass of contradictions, doesn’t work and ends up being a bit of a farce (although the “Emperor’s New Clothes” applies here as everywhere).  Certainly in Tony Roma’s it doesn’t work because although they had areas designated as “single men” and “family”, everyone was allowed to sit where they liked, almost like real life!

The success of Tony Roma’s in Saudi Arabia is a testament to the changing tide.  The manager in this restaurant told me that he has clear instructions from head office that the music will be turned off at prayer time and should anybody complain at any other time.  So far though, in three years, complaints have been minimal and mostly from religious police who make inspection visits from time to time.  The real measure of popular feeling however has to be bums on seats and by all accounts the liberals have a landslide.  Whether any other businesses have the bottle to join this movement for freedom of choice remains to be seen.  I suspect they will, but while they are getting their act together maybe you could ponder on two issues this raises.  Firstly, as I have said the power of brands like these to influence change and secondly the fact that maybe the Saudis are not as completely inflexible as we Westerners think.

In the retail – e-tail war detail could be the decider.

So, HMV is in a state of meltdown yet again and with today’s profit warning following a Christmas trading period that turned out to be more of a turkey than a gift, it all looks pretty glum for this once retail icon.

In fact HMV is one of two high street retailers that I feel deserve a kick up the arse right now.  Both are frustratingly short of a few tricks that would counteract the biggest threat to their future.  The other is no-brand WH Smith, whose stores are dismal, amateur, badly lit, over stocked, over-priced and poorly staffed.  There’s an irony somewhere in the fact that HMV’s sister business Waterstone’s is the one showing WH Smith how its done.  Smiths may be in growth mode right now, but it looks like the short-term market-trader kind of success that begs questions like “So what do we do for our next trick?”.

Compare the two – On the brightest day a visit to WH Smith can make you feel like ending it all.  A bit like a church hall jumble sale, the mess of books, school equipment, magazines and sweets(?) and lord knows what else, trying hard to be all things to all people and succeed in being nothing much to anybody.    Waterstones, on the other hand, with their founder back at the helm, have single-mindedly established their authority in a sector where authority is everything.  These days Waterstones are ticking all the boxes, with knowledgable and intelligent staff and meaningfully stocked shelves (no pick n’ mix sweets in grubby pots here).  They have even mastered the trick of using their High Street presence to establish the authority they need to succeed on-line and with a million plus e-book downloads under their belt I have no doubt that both clicks and mortar numbers will follow.

Like Waterstones, WH Smith and HMV have both encountered the Internet challenge, but while WH Smith firstly buried its head in the sand, hoped it would go away, then muffed the response, HMV, like Waterstones, are focussing on doing things in-store that only in-store can do and using on-line as a sort-of take-away format – well almost.  And that’s the rub.  They aren’t getting down to the detail quite as I would have hoped.

For one thing, despite the live music elements they have added, they haven’t really mastered the brand community thing and they are missing some of the small practical things could make doing business with them easier and more fun.  Take for instance the art of the demo.  A focus of all record stores in the past and certainly a useful community building tool today.  Remember the Saturdays (That’s the day of the week not the band!) spent in the listening booth at your local record store listening to Friday’s releases and deciding what to spend this week’s pocket-money on?

When vinyl went out of the door, so it seems did the listening booth – replaced, admittedly by HMVs listening posts, which were fine, but then … silence!  Sure, they’ll play a CD in the store if you can get close enough to the check-out for your request to be heard, but it’s not the same as sharing a set of headphones with your mates in a sweaty booth.

Maybe they think they have that one covered with their in-store radio (Is it live? – I’m not sure), but they kinda’ come out of that looking like the guy who invented 6-Up - just a natz short of success – not enough interaction, which they could have built-in even with an AsLive solution.  They also miss the same trick on-line because, except for a few albums like Jessie J’s latest which features her brilliant Price Tag video, you can’t listen to even samples of selected tracks before you buy.  In the store they make great play (excuse the pun) of introducing new acts with short, on-shelf biogs, but if you can’t listen to the music, you have to risk £10 to buy the album blind (or is it deaf?) which, when we are all being austere, is a non-starter really.

To WH Smith I say, before turn yourself into a Moroccan bazaar, I suggest you don’t copy Woolies, because we all know where that gets you, pop across to Wilkinson instead and see how multi-category retailing is done cheerfully and tastefully (and with staff that you’d consider striking up a conversation with).  Oh and switch the lights on.  Reading in bad light is bad for anybody’s eyes.   HMV on the other hand need to write a thousand times “retail is detail”.  Put yourself in your customer’s shoes, get the little things right, tackle these and I’m sure you’ll find your days will be brighter.

When profit is literally music to the ears of customers … and employees

We all know that music influences our actions.  There is endless research on the way music is used in sports psychology and there can’t be any fitness centres of gyms where music isn’t a constant feature.  There are also reams of papers by retailers revealing the impact that in-store radio has had on their business.

Retailers are old hands at this and apart from the in-store radio and TV of the larger multiples, retailers of all types and sizes have used music, in it’s simplest form, for many years to create atmosphere that entices customers to a store and creates an atmosphere where shoppers will linger longer, and we all know the longer people stay in a store the more they spend.

However, anybody who has worked in the in-store music arena will also be familiar with the complaints of shop workers who have to listen to it for the entire day, not just a few minutes that a customer spends in a store.  This is where the error of buying into cheap in-store music. with its loops, repeats and sound-alike bands, is highlighted, but it’s also an indicator of how music can be applied in other situations to`improve employee performance.

Because I have spent so many years advising retailers around the world I’m at home with the role of in-store music, ratio and TV, but I’ve also worked with businesses in corporate TV and spent time in offices like that of Sky TV in London, where music is a constant factor of office life so I have first-hand experience of the motivating power of workplace music. Like anything else, there’s good and bad in this field and while the muzac that so many stores and hotels opt for can ruin a business by frightening customers away and making an employees day a real drag, great music can make retail tills ring and boost energy levels.  However, this music thing isn’t as simple  as a lot of people think.  Anybody who really knows the subject will appreciate the psychology that goes into matching music types to audiences, moods and brand character.

In retailing there are both customer and employee profiles to consider, regional differences, business types and the variety of day-part patterns to be accommodated in any music strategy.  Fail to do this and your workplace music could literally be doing more harm than good.  There are three ways in which workplace broadcasting of one type or another can increase the profitability of a business.

In its simplest form music will create or enhance an atmosphere that strengthens a brand, provides an inviting atmosphere or increases productivity by motivating staff.  Get it right and even om this most basic level any business can achieve all three.

On the next level up, music, even by itself, can be used to prompt retail sales.  A UK supermarket played Spanish music in its wine department and significantly increased sales of Spanish wine.  However, with announcements or commercials that effect can be massively increased.  Another specialist UK retailer I know of achieved a 600% uplift in sales of one line in tests.

On the third level, in-store radio is already being used by many businesses not only to motivate employees, but to train them with product information, procedural updates and training modules transmitted out of retail opening or during office hours.

No business can afford to ignore or take this music thing lightly. It’s a legitimate business tool and increasingly scientific in its approach.  You are unlikely to get it right without help.  On the most basic level there are business out there playing radios, CDs and MP3s, oblivious to the fact that to do so in the UK requires licenses that costs upwards of £350 every year.  Avoidance could cost a whole lot more – I saw a post on a forum last week by a Chinese restaurant owner who was facing a bill for thousands of pounds!  My advice, don’t risk it and don’t try to avoid the fees by using non-licensed music – everyone hates it so it won’t bring any benefits. Bring in experts instead and profit from a well, thought out and executed workplace music strategy.