Download - Cineplex CRM (1)
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CINEPLEX ENTERTAINMENT:
THE LOYALTY PROGRAMGROUP 7
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1. P ROJECTING YOUR OWN MOVIE GOING EXPERIENCE , DISCUSS CUSTOMER PERCEPTIONS AND ASSESS LIKELY RESPONSE LEVELS TO THE REWARDS FROM DIFFERENT SEGMENTS .
InternalDevelopment
Flight MilesPartnership
ScotiabankProposal
Teenagers High Low Low
Young
Adults
High Low Moderate
YoungWorking
Moderate High High
YoungFamilies
Low Moderate High
OlderFamilies
Low Moderate High
Retirees Low Moderate High
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2. WOULD YOU RECOMMEND DEVELOPING THE REWARD PROGRAM ALONE , OR PARTNER WITH FLIGHTMILES OR S COTIA BANK? W HY?ATTRIBUTE INTERNAL
DEVELOPMENT
PARTNERSHIP WITH
FLIGHT MILES
PARTNERSHIP WITH SCOTIA
BANKCosts to company $5.5 mn & diminishing
thereafter$15 mn + $0.9/transaction +paying each time they accessdata
Approx. $6.51 mn ($3 mn + $1.7 mn + $ 1.8 mn)
Penetration Rate 16.56% (5.3 mn uniquevisitors)
21.87% (7mn customerdatabase)
21.25% (6.8 mn customers)
Data Ownership Complete NA NA
Pros Control over data &program ownership
There will not be anyBrand cannibalization
Immediate entrance to dataof 7 mn people and other flightmiles partners$250000 contribution toCineplex designed marketingcampaign Easy reach to large Canadianpopulation No additional card to becarried
Promotion in theatres andbank branches One of the big 5 banks inCanada Shared Financial Risk (50:50) Prior Experience with datamanagement Each debit/credit card holderwill be issued a CineplexLoyalty card
Cons Financial risk ofunredeemed points
New DB and team tomonitor the same
Long term project
3 years commitment No easy exit option Would lose access to all dataon exiting Extra cost incurred to access
DB & to issue points
Naming rights on 3 majortheatres Bank machines in all theatres Constrained decision makingpower
Multiple card system
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GO WITH S COTIA BANK PARTNERSHIP OPTION
Advantages:Cheapest and easiest way for Cineplex to establish a largecustomer databaseFinancial and data management risks would be sharedNo barriers for contractual exitsWin Win Situation
Suggestions:Shared decision making powersGather customer preferences via advanced technology atPoSExecute a single card/cardless strategy
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4. H OW WOULD YOU APPLY THE LEARNINGS FROM THIS CASE TO A BUSINES LIKE PVR IN INDIA?
PVR located in metrosLow inclination for flight travelHigh usage of credit/debit cards in metrocitiesSelect the bank with maximum or secondmaximum transactions during ticket
purchaseInternal Development is cost-intensive andnot their core competence
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THANK YOU !!