Jul
Impact of Music
“A valuable business uses its assets in a way that attracts customers and gives them a reason to be loyal to the business.”
Impact of Music
‘Assets and liabilities’… By just opening with this phrase you can tell that I mean business. Why? Because that is typical business, or shall we say Accountants’ speak. The whole concept of the Balance Sheet is based on making sure that the liabilities in the business do balance with the assets.
Well, I have no intention of writing an article on Accounting 101, nor am I qualified to do so. I however have an intention of
writing about music as one of the important assets in most, if not all, businesses. An asset can be described as anything that is used in order to create or add value in a business. The total value of the business is determined by the total value of the assets. Of course you have to take out the liabilities, simply because that portion of the value belongs to someone else in whose books you an asset.
A valuable business uses its assets in a way that attracts customers and gives them a reason to be loyal to the business. Music plays an important role in this.
The level of importance does, of course, vary from one type of business to the other. Can you imagine a night club without music? What would festive shopping be like without the music? Walking through the shopping complex without “Joy to the World” or “Silent Night” beaming in the background? Does the music played at your favourite restaurant affect you in any way?
A number of studies have been undertaken throughout the world, mainly by Societies involved in the collective administration and management of copyright in music, in order to establish facts in this regard. All of these studies have conclusively proven that music has a definite impact on consumer behaviour. Well, we knew this, didn’t we? But then how do we maximise the benefits derived from the use of this asset in a business?
A restaurateur does not only serve a meal that he or she likes or that he or she feels like on that day. They develop a menu based on the full understanding of their customers’ preferences. Should this not be the case with music? Playing the music that only appeals to the business owner and does not take into consideration the customers can be counterproductive. Similarly, playing the music that is planned at Head Office without taking local tastes into consideration may not produce the desired results. So if you are to invest in this important asset, which by the way you should, you will be well advised to ensure that it shows the returns.
By carefully planning the music that is played in business carefully, the owner or manager can influence buyer behaviour in such way as to achieve business objectives for a particular day, month or year. He or she can draw customers to specific sections of the shop, change the pace of in-store browsing, create demand for a certain type of merchandise and the list goes on. The selection of the music played is therefore as much of a business decision as deciding what merchandise should be sold and what packaging and merchandising techniques should be used.
I bet all this sounds like common sense, but what music are you playing right now as you read this article? Who influenced the choice?
