StORES Magazine - August 2007 - (Page 58)

IN-STORE MARKETING Sinatra to Shakira Broadband entertainment system lets retailers customize, expand playlists BY FIONA SOLTES I f you’re still relying on piped-in soft rock favorites to set an atmosphere in your store, it may be time to ask just what kind of atmosphere you’re creating. It’s not that there’s anything wrong with the music, per se; it’s just that customer expectations are constantly changing in this instant-access society. A new in-store programming option offers the ability to personalize playlists by region – even by store. That’s because BroadSign Suite from Channel M provides in-store programming over broadband, rather than by traditional DVD. Not only does that mean a longer loop is available to keep customers – and employees – from hearing the same content over and over; it also means the module can be used for staff training, marketing campaigns — even the sale of thirdparty advertising. “What you can do with something like this is very exciting,” says Eric Hebel, Channel M’s COO. “This is becoming one of the main communication tools in stores for these retailers, which is a great thing. A retailer may sponsor an event, for example, but you never see that content anywhere. They don’t leverage that. This gives them a way to showcase what they’re about for their customers.” Ashley Furniture HomeStore was already on board with Channel M’s DVD program. The DVD system offered between two and four hours of programming, and was the same in most of the chain’s 318 participating stores. The idea was that the added element of entertainment would build brand loyalty, keep people in the stores longer and boost sales. Regional preferences But a study of the company’s demographic base yielded some interesting re- Music preferences can change throughout the course of a day, depending upon who’s in the store 58 STORES / AUGUST 2007 sults, says vice president of operations Ben Thorud. Most immediate was that the popularity of certain genres of music varied according to region. “If a store is in Texas, for example, it will usually be skewed more country,” Thorud says, “but that doesn’t necessarily work for a south Florida store.” Music preferences also can change throughout the course of a day, depending upon who’s in the store. “Before, we had modern pop music videos that had a PG-13 rating, so they were supposed to be suitable for all audiences,” Thorud says. “But the studies in our stores have shown that, as the day goes on, the demographic gets younger. At 10 in the morning, playing a modern pop video for a retired couple probably isn’t the best strategy. But now, in the morning, we can skew the demo to the 55-plus crowd, and as the day goes on, the music can get more upbeat and lively.” The more specifically targeted the music is, the more likely it is that customers will consider a retailer “their” store. “The programming really helps engage the customer,” Thorud says. “But it also allows us to reinforce our promotional messages, to continue educating, and to advertise items like Sealy and Simmons mattresses, which are the only other brands we sell in our stores.” Arcadia, Wis.-based Ashley Furniture HomeStore hopes to have the system in a majority of its franchised stores by the end of the year. The new programming will create new challenges, as well, not the least of which is an extra level of responsibility. “It will require us to be more pro-active,” Thorud says. “Now, rather than just approving music for the DVD, we’ll have to approve it continuously and monitor videos for proper content.” The new program will cost roughly the same as the previous DVD-based content, but it does require an initial investment in a server. Channel M sets up the computers in-house, pre-loads them with a certain amount of programming and then ships them out to the stores. From there, Hebel says, the stores need only to swap the computers for the WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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