ELEVATINGTHE CUSTOMEREXPERIENCEThe Impact ofSensory Marketing

Global Research Report| Published January 2019

Over the past several years, retailers have been looking with greater intensity at new ways
for customers to interact and engage with the brand and its products on a more personal,
tangible and emotional level. One area of focus that continues to garner renewed attention issensory marketing.
While traditionally viewed as a more supplemental tactic, often taking a backseat to more
immediate considerations such as positioning, price and promotion, retailers are beginningto realise that a strong sensory marketing strategy is critical in the effort to resonate withcustomers and build more personal and emotional connections.
It’s no easy effort to design an engaging sensory experience, let alone to measure andjustify the impact of the subjective creative decisions and tactics designed to meetsuch seemingly “soft” objectives. This is especially problematic when executives andshareholders are looking for hard numbers that drive bottom line performance.
With so much at stake, “we think it matters, so we’d like to do this” can be a hard sell. The
pitch is much stronger when backed by research and data that supports the argument andidea. It’s especially powerful when amplified by the voice of the consumer.

That voice tells us that sensory experiences matter. 78% ofconsumers globally cite “an enjoyable store atmosphere”
as a key factor in choosing brick-and-mortar overecommerce, and 90% say they’re more likely to revisit abusiness that leverages music, visuals and scent.
We’re excited to deliver the results and findings from our mostrecent quantitative and independent study where we asked
more than 10,000 consumers around the world what they mostenjoy about the in-store shopping experience. We sought to learn which sensory elements
have the greatest influence on customer attitudes and behaviours when shopping.
What did we take away from the study? In summary...
+ Sensory marketing matters+ Customers are influenced by and respond to their sensory environment+ Investment in a sensory marketing strategy can pay meaningful dividends
We hope this study provides you with new insights and that it serves as a source ofinspiration and fresh ideas. At the very least, we believe you’ll begin to look at things
differently, listen more intently, feel with greater purpose and be more conscious of all thatsurrounds you and your customers when you consider the evolution of the in-store Customer
Experience.

Scott Moore – Mood Media
Global SVP of Marketing and Creative Content

moodmedia.com“In a world in which products and services are ubiquitously available, we buy where we’regiven the best experience. Physical retail is becoming the place to explore, to be romanced,
to be entertained, to share moments. It’s where smart brands are making authentic
connections with their consumers, simply because those compelling experiences cannot befound on a website.”As the global leader in elevating the Customer Experience, MoodMedia is committed to listening to that voice.

|We all know the story. With the advent of the Internet and online shopping, consumers
have access to more information and more options than ever before. They’re fully in charge
and are actively making decisions across both online and offline channels. But despite
the seismic growth of online shopping, brick and mortar still plays an important role. DavidKepron summarised the role of B&M quite well in Retail (r)Evolution:

The Impact of Sensory Marketing 2019

INTRODUCTORYNOTEThe Impact of Sensory Marketing 2019

METHODOLOGYWHO|+ 10,039 respondents, ages 18++ 51% female, 49% male

moodmedia.com

HOW+ 15 minute online survey

WHERE		 WHAT+ Australia		 + Retail+ Benelux		 + Financial/Banking+ China			+ Grocery+ France		 + Pharmacy+ Germany		 + QSR+ Spain			+ Beauty+ UK+ USAOUR GOALSThe purpose of our study was to gain a better
understanding of the broader impact of the sensory
experience on shopper perceptions and behavior. Inparticular, we wanted to measure the impact of audio(music), visual (digital screens), tactile (touch/feel) andscent (smell) stimuli (NOTE: the sense of taste was notincluded in the study, as it is largely irrelevant to thebroader retail industry).

In-field research conducted by Walnut Unlimited, the global
market research agency specialising in neuroscience andbehavioural psychology and economics.

The Impact of Sensory Marketing 2019|moodmedia.com

RESEARCH
FINDINGSCOMBATTINGTHE ECOMMERCE
EFFECT
This is particularly true for shoppers in Spain, China,
Australia, the US and the UK.
78% of shoppers say an enjoyable
in-store atmosphere plays a key factor
in opting to make purchases in-store
vs. online

78%

100

89%

88%

SPAIN

CHINA

78%

86%

84%

AUSTRALIA

USA

79%

0UK

A TOOL TO
ENCOURAGEREPEAT VISITS
90% of shoppers say they’re more likely to revisit
a brick and mortar business if the music, visuals
and scent create an enjoyable atmosphere.

90%

95% ofSpanishshoppers agree

10093% ofChineseshoppers agree

92% ofAmerican
shoppers agree

81% ofBenelux
shoppers agree

90% 95% 93% 92% 91% 90% 90% 89%

81%0ESPCHNUSAFRAGERAUSUKBLX

Chinese
shoppers|86%
Spanishshoppersof shoppers say they are more likely
to stay longer in a place of business
if they’re enjoying the music,
visuals and scent
77% of US
shoppers

76% of French
shoppers

74% of Australian
shoppers

moodmedia.com

75%92%

Business owners in China
and Spain can expect
the biggest boost in dwelltimes, as 92% of Chinese
shoppers and 86% ofSpanish shoppers saythey’ll stay longer withthese sensorial elements
in place

The Impact of Sensory Marketing 2019

STAY LONGER,
SPEND MORE?

moodmedia.com

THE POWER
OF INTERACTION
THE POWER OFPERSONALISATION|and try different
products or services
is cited as the biggest
driver in making
consumers more
likely to want to buy
something in-store.

consumers aroundthe globe say “feelinglike the experience ispersonalised to me”
makes them more
likely to purchasesomething

The Impact of Sensory Marketing 20194IN1056%
The ability to touch10084%

90% 88% 86%
85% 83% 82% 82%74%0ESP

CHN

USA

FRA

GERAUS

UKBLX

moodmedia.com

Just over 8 in 10 consumers globallywould recommend a store if they foundthe sight, sound and scent sensorial
elements to be enjoyable.

Spanish and Chinese shoppers consistently have thehighest positive reactions to sensorial marketing acrossthe board, including the highest likelihood to recommend
a positive sensorial atmosphere|

8IN10THE POWER
OF SHARINGThe Impact of Sensory Marketing 2019

POSITIVE EXPERIENCESYIELD POSITIVE REVIEWS

Chinese shoppers (56%) are more thantwice as likely to share their in-store
experiences via social media than shoppers
elsewhere (27% globally)

42%56% > 27%
Chinese shoppers
likely to shareexperience on social

Globalshoppers

all beautyshoppers

55%of those
25-34

CHINESE & AMERICAN
BEAUTY SHOPPERS ARE
MOST LIKELY TO POST

moodmedia.com

CHINESE SHOPPERS ARE
MOST LIKELY TO SHARE
THEIR IN-STORE EXPERIENCESVIA SOCIAL MEDIA|AND AS A CATEGORY, BEAUTYSHOPPERS GLOBALLY ARE THE MOST
LIKELY TO SHARE THEIR IN-STORE
EXPERIENCES ON SOCIAL MEDIAThe Impact of Sensory Marketing 2019

POSITIVE IN-STOREEXPERIENCES
LEAD TO POSITIVESOCIAL POSTS

54%

Gen Z grocery shoppers aroundthe globe say they’ve been
made aware of a product or
special promotion by digital
screens in store

25%

Pharmacy customers around theglobe say they’ve stayed longer
because of engaging content on
digital screens in store|58%

QSR customers recall specificmessaging they’ve seen on
digital screens

The Impact of Sensory Marketing 2019

SUCCESSIS WITHIN
SIGHT

58%
of consumers say that engaging
video content has a positive
impact on their shopping

moodmedia.com

VIDEO CONTENTIS KING

SIGHT DRIVESINFLUENCE,INSPIRATION& RECALL

OF CONSUMERS AROUND THE GLOBE HAVEBEEN INFLUENCED BY DIGITAL CONTENT
THEY VIEWED WHILE IN-STORE.

ALL EYES ON CHINAIn China, 76% of consumers
report being inspired, informed orentertained by digital content –more than 1.5X greater thanother countries.

76%

7IN10

Chinese shoppers recall specific products or special
promotions on digital screens in fashion stores, beauty
stores and grocery stores.

The Impact of Sensory Marketing 2019|WHAT DO
SHOPPERS
LIKE TO SEE ON
DIGITAL SCREENS?
BUT BEYOND INFORMATIONBEAUTYFASHION
GROCERY
PHARMACY+ In-store specials and promotions+ Product and/or service information+ Product and/or service availability
and recommendations

QSR+ In-store specials and promotions+ Menu options/product information+ News/Entertainment

4 in 10 say they’ve also enjoyedwatching TV programming

BANKS+ Product and/or service information+ Special rates and promotions+ News1 in 3 banking customers saythey’ve been entertained by usefulor interesting videos on screens39%

of fashion shoppers say they’vebeen attracted into a clothing storeafter noticing “engaging content on
store screens” inside.

moodmedia.com

IN THIS ORDERUSconsumers
agree

COMPOSING
THE MOOD

85%
Music is the number one factor inlifting a shopper’s mood in-store, andit has an overall positive impact on
85% of global shoppers.

MUSIC
MAKES ME
STAY LONGER

46%
Globalconsumersagreemoodmedia.com

Globalconsumers
agree

62%

|

MUSIC
59%
LIFTS MYMOOD

The Impact of Sensory Marketing 2019

SOUND
THE TALE OF
THE TUNES

THE RIGHTMUSIC MATTERS(A LOT)

|moodmedia.com

More than half (57%) of shoppers
warn they’ll disengage if brands
make poor music choices such as
unenjoyable or “unfitting” music ormusic that’s played too loudly

The Impact of Sensory Marketing 2019

NOT JUSTMUSIC,BUT THE
RIGHTMUSICThe Impact of Sensory Marketing 2019|MUSIC MATTERSREGARDLESSOF BUSINESSCATEGORY

moodmedia.com

MUSIC & FASHION

74% of all fashion shoppers – and 80%of French fashion shoppers – remember
enjoying music while perusing thesales floor.

MUSIC & QSR

58% of QSR customers recall hearing
and enjoying music while dining

MUSIC & BEAUTY

1 in 2 shoppers recall hearing andenjoying music while shopping in a
beauty store

MUSIC & GROCERY

1 in 2 shoppers recall listening andenjoying music while grocery shopping.
1 in 4 remember overhead promotional
messaging, and 1 in 5 recall altering their
shopping list due to overhead promotional
messaging.

MUSIC & BANKING

1 in 4 banking customers specifically recall
a bank playing “appropriate” music.

among those
aged 55+of shoppers between 18
and 24 years of age recall
enjoying listening tomusic in-store recently

Gen Z consumers around theglobe are most likely to noticeand be responsive to in-store
sensorial marketing elements(1.4x more than the total adultssurveyed), with significantly
higher numbers of them agreeing
they enjoy hearing music in store,
notice and enjoy pleasant scentsin store, and feel influenced byin-store video/digital content.

And more than half(59%) say they’ve
stayed in a physicalplace of businesslonger because they
were enjoying themusic.

1IN2

Gen Z’ers say they’ve been
influenced by in-store
video/digital content.

moodmedia.com

VS.

48%

|74%

The Impact of Sensory Marketing 2019

YOUNG, ALERT& RESPONSIVE
GEN-ZNOSE AROUND AWHILE
1 in 3 consumers say a nicely scented businessmakes them “stay longer”

AND BE INSPIRED
1 in 5 consumers say a nicely scented business“makes me more likely to want to buy something”

moodmedia.com

of consumers globally say they’vebeen “positively impacted” by in-store
scent elements

1 in 2 consumers say a nicely scented business“lifts my mood”

|81%

1IN2
1IN3
1IN5

AHH, BREATHE

The Impact of Sensory Marketing 2019

SCENT THE NOSEREALLY KNOWS(& REMEMBERS)

moodmedia.comSpaniards may be particularly aware of Scent, with
85% of all Spanish shoppers noticing if a store has
a pleasant scent, versus 63% globally. 47% of allSpanish respondents say a pleasant scent will bringthem back to a store.

|ESPAÑA,ESPECIALLY

The Impact of Sensory Marketing 2019

WHO RESPONDSTO SCENTELEMENTS?
SPANIARDS DO!

The Impact of Sensory Marketing 2019
|ACROSS
CATEGORIES,SCENT MAKESAN IMPACT

moodmedia.com

IT’S A
BEAUTIFUL THINGHEALTHY SCENT,HEALTHY SIGN?

KNOW YOUR FASHION,KNOW YOUR SCENT

56%

45%

40%of beauty category shoppers
around the globe have stayed
in a store longer because of apleasant scentof all pharmacy shoppers “remember
noticing a pleasant scent.”
Spanish (62%) and German (59%)
pharmacy customers were thelargest group to notice.

4 in 10 fashion shoppers can
specifically name clothing
stores which “have a certain
scent when you walk in.”

49%
Germanshoppers

moodmedia.com

Global shoppers have lefta business due to unpleasantor overpowering scent

USshoppers|Be warned: While a pleasantscent lifts moods, dwell times andwallets, an unpleasant scent canbe damaging.

33%

44%

The Impact of Sensory Marketing 2019ADIOS
AU REVOIRVAARWEL
AUF WIEDERSEHENGOODBYEmoodmedia.com

Valentina Candeloro – Mood Media
Marketing Director Mood International|

Brick and mortar, when done well, will continue to evolve, grow andflourish. The demands and preferences of consumers will drive thein-store experience to improve, delight, amaze and showcase thecomplete personality and essence of a brand. Sensorial marketing
efforts drive elevated Customer Experiences. And elevatedCustomer Experiences drive success.

The Impact of Sensory Marketing 2019

WHY IT ALL
MATTERS

Despite all online headwinds, the power of brickand-mortar is undeniable. This study is yet anotherimportant and inspirational call to all in-store
marketers, regardless of industry. What you do isimportant. Every detail matters more than ever andcontributes to the overall experience and impact
on your customers. Above all other channels, thein-store experience is where a brand can truly comealive and engage in a way that stimulates all senses andsets the stage for creating the most powerful, emotionaland memorable impressions for your brand.

Mood Media is the world’s leading in-store media solutions company dedicated to elevating
the Customer Experience. Mood creates greater emotional connections between brands
and consumers through the right combination of sight, sound, scent, social and systems
solutions. Mood reaches more than 150 million consumers each day through more than
500,000 subscriber locations in 100+ countries around the globe. Mood’s clients include
businesses of all sizes and market sectors, from the world’s most recognised retailers andhotels to quick-service restaurants, local banks and thousands of small businesses. Formore details: www.moodmedia.com.

Complimentary Sensory Marketing Consultation
moodmedia.co.uk/contact-us/
North American Media Inquiries
Caroline Traylor at caroline.traylor@moodmedia.com
European/Asian Media Inquiries
Valentina Candeloro at v.candeloro@moodmedia.com
Australian Media Inquiries
Hannah Maskrey at h.maskrey@moodmedia.com

ABOUT WALNUTUNLIMITED
Walnut Unlimited is a more than a market research agency, they are the humanunderstanding agency. They uncover human insights that help bring global brands closer tounderstanding people for better business decisions. Through innovative thinking, they use
no-nonsense science drawing on specialisms in neuroscience and behavioural psychology
and economics. They work across retail and customer experience, technology, financial,FMCG, brand and communications. Information about Walnut Unlimited can be found here:
www.walnutunlimited.com.

moodmedia.com

moodmedia.co.uk/2019study|

ABOUT MOOD MEDIACORPORATIONThe Impact of Sensory Marketing 2019

FOR MORE
INFORMATIONmoodmedia.com