Cineplex Entertainment: the Loyalty Program
As the Cineplex customer surveys of 2006 have indicated, the customers are responding very positively on possible movie rewards program. There's a need to create a CRM-system for Cineplex and also rewards program that both improves customer loyalty and enables more efficient new customer acquisition. Even though the CRM-program may feel expensive, it is worth the price and that's shown in this document. Getting more information about our customers is a key factor in developing our business forward to new level.
REWARD STRUCTURE OF THE PROGRAM
The program itself should be simple and easy to understand. Even though the main segment for this program is "young people" (16-24 years old), it will benefit all the other segments as well. Getting a card must be easy, free and besides the program must contain point-program, because majority of people expect that from movie rewards program (see exhibit 3).
After comparing different reward structure options, in my opinion the Option 4 (see exhibit 5) seems to be the best alternative. There's no membership fee and earning points is simple. Every card owner gets 10 percent discount from concessions, which encourages people to become members. It is important to notice that concessions discounts will probably add demand of those products. After getting the first members people will start talking about membership and word-of-mouth marketing works well in membership selling. Also the target steps between 1000 and 2000 points are clear and achievable for average customers. It can be said that every 10th movie visit is free for members, but having such targets (collecting points) also affect their consuming which increases when they actively start collecting points and achieving given point-targets.
If the sign-up points and discounts are not examined, Option 2 would be the cheapest choice. Anyway it is easier to handle a simplier program and that is why Option 4 is superior: Customers don’t get points from concession
REWARD STRUCTURE OF THE PROGRAM
The program itself should be simple and easy to understand. Even though the main segment for this program is "young people" (16-24 years old), it will benefit all the other segments as well. Getting a card must be easy, free and besides the program must contain point-program, because majority of people expect that from movie rewards program (see exhibit 3).
After comparing different reward structure options, in my opinion the Option 4 (see exhibit 5) seems to be the best alternative. There's no membership fee and earning points is simple. Every card owner gets 10 percent discount from concessions, which encourages people to become members. It is important to notice that concessions discounts will probably add demand of those products. After getting the first members people will start talking about membership and word-of-mouth marketing works well in membership selling. Also the target steps between 1000 and 2000 points are clear and achievable for average customers. It can be said that every 10th movie visit is free for members, but having such targets (collecting points) also affect their consuming which increases when they actively start collecting points and achieving given point-targets.
If the sign-up points and discounts are not examined, Option 2 would be the cheapest choice. Anyway it is easier to handle a simplier program and that is why Option 4 is superior: Customers don’t get points from concession