WEEKLY CineBUZZ REPORT - 1 March 2012

Highlights of this week's CineBuzz Report:

- Gamification -- A Way to Build Moviegoers' Participation & Loyalty!
- Three Proven Tactics For a Cinema's Success
- On-line Concession Sales - Profitable & Efficient
Gamification

Gamification = Loyalty

Cinemas need to adopt gamification - internet-speak for a new  marketing tool which uses fun and games to build customer loyalty.
Now, there is nothing new about customer rewards and loyalty programs.  Termed "earn and burn", these programs have existed for years, and  many cinemas, like other companies (airlines and hotels quickly come to mind) have built loyalty programs around points, discounts, miles, etc. But many of these programs fall short of their mission - to retain and grow a loyal customer base.
What gamification does is to take game elements to connect with and engage customers. Using techniques, known as funware, and the power of social networking, gamification techniques challenge and motivate customers through competition, recognition, and rewards.  Gamification motivates people with virtual awards that have little or no monetary value, but that deepen the engagement and exposure to the cinema (and its brand) through something that has intangible value. Sounds crazy- but it works!
Some examples of gamification that could be used by cinemas:
- Online trivia games - which rewards winners with special concession coupons and deals.
- Reviewing movies - where reviewer "levels" are achieved dependent on the number of reviews published on the cinema's site. For example, a "Star Level" is given when 8 reviews are posted - and a "Star" would be displayed on the cinema's site along with the reviewer's profile.
Traditional loyalty programs are not social - gamification adds that social dimension which is very powerful to brand loyalty.  It turns loyalty programs into enjoyable, social on-line experiences that are very simple to implement and at very little or no cost.  For example, a cinema could present badges to people that purchased their admission ticket on-line for a particular film.  These "virtual" badges would include the benefit of sharing favorite insider tips on up-coming films, and having discussion with the cinema's staff on future films, concession, and cinema events.
Gamification is designed to provide a constant stream of motivation to keep moviegoers engaged.  In the future, loyalty programs will incorporate more fun and games rather than expand the "earn and burn" format of today.

New & Inexpensive Ultra-thin Cinema Displays

Three Success Tactics in the New Cinema World
The game of cinema exhibition has permanently changed - just as it has for most off-line businesses.  New survival tactics are required to prosper in this new environment - here are three:
First, lower your prices.  I know this is painful but it's the only way to get moviegoers back into the cinema and it will force you to re-focus on productivity, marketing, and the use of technology.  You may have to live with lower per cap profit but you will make it up in higher volume if you do things right.
Second, embrace the store-within-a-store strategy.  Focus on a few key product lines which are easy to inventory and train staff on. These product lines may consist of select clothing, peripheral electronics, or even new concession items.
Third, exhibitors have to create an experience that is proprietary and unique. A transformative re-scripting of normal operations where moviegoer participation is requisite.  Cinemas can build brand loyalty by letting patrons participate in creating the "movie experience."  Termed: consumer mindshare, this trend in marketing and brand development, is a perfect fit for cinemas.
Thinking beyond convention is hard but will be very rewarding for the cinemas that adopt these tactics.  You need to go beyond "having good customer service" with your old products and selling techniques - the cinemas of tomorrow need to focus on innovation and extension to deliver an experience that is more than just going to the movies.

Empire Debuts On-line Concessions

Concession Sales Go Digital

For several years I have pushed hard for cinemas to have on-line concession sales.  The idea never left its cage however, as the cinema industry didn't get "it" - until now!  Last week, Empire Cinemas, the largest independently owned cinema chain in the United Kingdom with 158 screens announced its introduction of an on-line concession sales initiative. 

Empire's moviegoers will now have the opportunity to purchase concessions at the same time as they purchase their tickets. The new system is being trialed at two locations with the intent of being rolled out circuit-wide if the service proves popular - and it will.

Empire's system allows customers - after purchasing their tickets - to visit an on-line concession stand where they will make their selections. Once selected and checked out they will receive a voucher that allows them to pick-up their concession items along with their tickets.  On-line concession sales not only saves customer and staff time but users will be given special discounted combo deals - making a trip to the on-line store cost effective.

Gordon MacDonald, Empire's Retail Manager, stated, "We're always looking for ways to make our cinema offering the best available and give our customers the ultimate cinema experience.  It's only natural that Empire use this platform to offer our confectionery and refreshments to customers who prefer to buy online."

Not only more convenient, but I predict on-line purchases will boost a typical sale by 15-25% vs. an in-cinema purchase!  Any cinema that is not offering on-line concession sales is experiencing an opportunity loss - get to it!

Epilogue

The three topics of this week's CineBUZZ Report represent several ways to engage and encourage your cinema's customers, and hit upon three of the five cinema essentials (Value, Convenience, Quality, Participation, and Experience)

Best and Happy Movie Going!
Jim Lavorato