Keeping pace with the technological shift today, movie theatres are disrupting their practice by shifting their strategies to correlate with rising economic trends and demands from users.
Learn from other industries
Cinemas are slowly turning to a confluence of entertainment and hospitality. While the hospitality industry has caught on to the fact that customers are always connected and uses that to their advantage, the cinema industry needs to start leveraging data for more reach.
Airports and travel also struggled with online competition much like cinemas and Netflix. Their solution was to switch to dynamic pricing based on real-time market demands. This allows access to better data and visibility over demand while also providing flexibility and choice across different price levels.
The best way forward is to recognize and understand technological gaps within operations. Integrating the front-desk and back-end through systems like SAP S/4HANA offers visibility to the management, scalability, and reduction in human error. But to make the most of these next-gen software, personnel must be trained.
Investing and installing an intelligent and intuitive system needs to be done in parallel with updating operations and processes. It is easy for personnel to overlook either the capabilities of the software or what it can be used for. Personnel need to be trained, software provider needs to demonstrate best practices, and management must understand how individual branches are doing.
Technology must be employed to learn more about customers, to enrich their experience and drive loyalty. Systems like SAP S/4 HANA offer greater insight into customer preferences.
Customers today expect personalization and are willing to sign up for loyalty programs as long as they see value in it. A paid loyalty program option will drive higher spend and satisfaction, personalized by intuitive systems like SAP S/4HANA. Willingness to pay for enhanced benefits is significantly higher among the millennial and GenZ crowd. This could help in targeted marketing campaigns with the SAP Predictive analysis using customer data.
Success depends largely on knowing to differentiate between what will turn into a gimmick and what is worth the investment. While upgrading projectors and screens is a possible investment, figuring out how much footfall this will create is more important. A better revenue stream would be creating a multi-functional lobby with VR entertainment hubs, gaming zones, bars, restaurants, and interactive pre-shows.
This is ideal in attracting new customers, helping in cross-selling and up-selling of various products while creating space for well placed advertisements. This will generate, capture, and use customer data while giving personnel more time working on customer relations on the floor rather than looking at back-end procedures. This in turn maximizes revenue while engaging consumers.
Keep pace with current trends
Staying up to date on the industry and analyzing the shift in preferences is mandatory to stay on top of the game. Offer an immersive experience that customers are after. For instance, PVR cinemas in India has launched Vkaoo, with remarkable success, a platform that lets you screen movies of your choice at your preferred date, time and screen.
With ticket sales on a rapid decline, investing in automation, digitization, and labor-saving technology seems to be the trend. Restructure your organization to take on a more customer centric approach.
Capitalize on foodiness by offering an expansive variety of cuisine, with flexible pricing and plenty of choices. Market the cinema as an experience instead of just seeing a movie.
What will a futuristic multiplex look like?
Let’s say a couple is looking for something to do for their anniversary. A notification pops up offering an exclusive discount for a movie they have been meaning to watch. Upon opening the app, they find that the app has selected movies based on their preferred genre. They pick one and move to choosing seats, when the system asks them if their usual preference for particular seats can be applied. Their final order page has their favourite concession snacks and they get a great discount inclusive of the snacks. They get various options to pay online and receive instant confirmation upon payment.
On the day of the show, they drive to the multiplex, reaching a good 30 minutes early to avoid the hassle of finding a parking space when a valet greets them by name after scanning their e-ticket. They head up to their floor and decide to have a drink, when greeted by name at the premium bar. The bartender asks if he can get their usual, with a complimentary side of pastries for their anniversary, and congratulates them. They check out the VR lounge after and buy a couple of magnets and bottle openers.
Just before the show, they head up to the concession stand to collect their snacks, when they are told it will be delivered to their seats. They enjoy a movie, free from having to worry about parking or snacks or seating, while feeling special and connecting with the brand.
They are being given the VIP experience, with the red carpet welcome. This feeling will be remembered and will drive loyalty and repeat visits. After all, the cinema isn’t just about watching a movie on a bigger screen anymore. It is about an experience that cannot be gotten at home through a phone or a TV.
Savantis understands the need to stay ahead of the curve. We specialize in helping companies understand customers better – through actionable data, increasing employee productivity, integrating business processes and orchestrating better experiences for your customers. Feel free to get in touch with us.