To run a successful business, you have to adapt to change.
The music industry continues to experience many changes. While some of these changes mirror general retail trends, others are unique to the music retail sector. Advances in technology have led to many of these changes, including large online retailers, new digital tools, and the importance of online business reviews.
Some changes are due to customer preferences, including a growing interest in instrument rentals and music lessons. As the owner of a music retail store, understanding these trends and how you can take advantage of them can help you better serve your customers and increase revenue.
In this blog, we discuss five ways the music retail sector is evolving and how you can strategically react to these changes, so you can see greater success at your music store.
Let’s dive in.
A large portion of retail sales takes place online now — in fact, many customers choose this option out of convenience. Although a customer can’t see a product in person before buying it, return policies allow them to send it back if it isn’t a good fit. And although buying online requires customers to wait, faster shipping speeds make it a viable option for many shoppers worldwide.
Our recommendation: Launch your own online store.
To take advantage of this trend, you can set up an online music store of your own. Setting up a website and e-commerce processes may seem stressful, but many e-commerce platforms exist that make this task easier. Modern point of sale (POS) systems include e-commerce capabilities, in addition to other features that help you run your in-person store.
Choose an e-commerce platform that syncs your in-store and online operations, including inventory counts and sales data. A provider who helps you design your website is also a plus — create a website that’s visually striking and easy to use, so customers spend time browsing your instruments and accessories.
Related Read: Building an E-Commerce Presence for Music Stores: 8-Step Guide
Launching your own online music store helps you serve more customers and increase sales. But, as more music stores move online, it’s getting more difficult to compete in the marketplace — especially with large online retailers like Amazon and Guitar Center. To stay relevant, you need to communicate to your customers the value of in-person shopping for musical instruments.
Our recommendation: Focus on what sets your store apart.
As you market your music store, emphasize your unique selling points. These may be rare instruments, superior customer service, or personalized recommendations. Remind your customers of the expertise you and your employees bring to the table to encourage them to buy in person.
The demand for musical instrument rentals continues to increase. Many customers prefer to rent an instrument to try it out before purchasing it. This market also serves students who are a part of a school orchestra or band.
Our recommendation: Offer flexible rental programs for students and other musicians.
To capitalize on the increased demand, offer affordable rental programs for a variety of popular instruments.
These are some of the most common instruments for students to rent:
Offering rental instruments like these at affordable prices allows you to cater to students and other beginner musicians. Remember: Stock additional items like carrying cases, cleaning products, and other instrument accessories, so these students have everything they need to get started.
Related Read: 8 Ways To Manage Music Shop Rentals
With modern digital platforms like POS systems, business owners can more effectively track and analyze their data. Cloud-based POS systems keep live inventory totals and track key metrics like costs, revenue, and profit.
Our recommendation: Monitor data closely, find insights, and use them to make informed business decisions.
The most successful businesses run on data. Pay attention to which instruments are selling more, and which ones are sitting on the shelves. Then, use this data to inform your purchase strategy. If guitars are selling fast, stock more of the top-selling guitars. If more niche instruments are struggling to move, reduce your orders of these instruments.
Sales data also reveals seasonal trends. If you rent instruments out to a lot of students, the back-to-school season is likely a busy time for your music store. Use data about seasonality to figure out if you need to adjust inventory purchase levels at different times of the year.
Related Read: What Is the Best Music Store Point of Sale System: 5 Top Providers
As customers grow more dependent on the internet for retail shopping, online reviews become more and more important. Many customers use sites like Google and Yelp to look up your business long before they make a purchase.
Our recommendation: Encourage satisfied customers to leave online reviews and address negative reviews when possible.
Rather than just hoping for the best or ignoring online reviews, you can take steps to actively influence the quality of your online feedback. You can ask for reviews from satisfied customers when you talk to them in your store, and send out feedback requests over text message or email. Check your online reviews regularly and when possible, respond to them. Remember: Thank customers for giving positive reviews.
Even great businesses receive negative reviews from time to time. When you receive negative feedback, try to reach out to the person who left it to see if you can resolve their issue. If you receive the same piece of constructive criticism often, consider how to improve based on the feedback.
Related Read: 7 Music Store Customer Management Ideas To Drive Sales
As a business owner, sometimes changes in your industry can catch you off guard. While some changes may seem like threats to your business, creating an intentional strategy helps you adapt to these changes, so your business can compete in the market.
As musical instrument sales move online more, you can set up an online store and emphasize the benefits of buying in person. These strategies help you appeal to both online and in-person shoppers — and draw more customers to your music store.
As rentals become more common, offer plenty of instruments as rentals to accommodate these customers. Don’t forget to use a digital platform to track your business’ data and seek online reviews from satisfied customers. Updating your business’ operations for the digital environment requires a lot of effort — but by using the right tools, you can lighten the load.
Music Shop 360 is an all-in-one, cloud-based POS system designed specifically for music stores. It’s equipped with both general retail features and music-specific features, so you have everything you need to run your store.
To see the difference Music Shop 360 can make for your business, schedule a demo today!