Case Study

Exceptional boost for customer retention and loyalty.

Leading US-based movie theater chain with global presence.

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Case Study - US based movie theater
Industry
Media & Communications
Services
Digital Transformation

The Challenge

The client reached an enrollment saturation and was struggling to acquire new members into their legacy loyalty program. Retention rates for this single-tier paid membership were on the decline and membership drives and acquisition campaigns were becoming a waste of marketing dollars. The client needed a partner to help them revamp their loyalty program to attract and retain more customers.

The Sutherland Transformation

With Sutherland’s help, the client redesigned and relaunched their loyalty program. Sutherland proposed two strategies and identified metrics and markets to test the strategies for a limited time. We also determined key metrics and a reporting strategy to continuously measure the performance of the pilot. Automated dashboards were created and made accessible to executive management to continuously track performance.

This revised strategy provided valuable insight to the client on:

  • value of membership and financial viability of the program
  • how free member enrollment and free screening influences short-term and long-term behavior
  • change in guest behavior when they redeem a reward and when they’re paying for concessions or tickets out of their pocket

Sutherland’s data science and analytics consultants worked closely with the client’s management team and built robust models that predicted the incremental revenue from each dollar redeemed, and the benefits consumed by each member. They could now measure the present spend by membership tier, migration between tiers, and estimated probability of churn.

Sutherland proposed two strategies and identified metrics and markets to test the strategies for a limited time.

The Results

A two-tier refresh program was launched in July 2016. Since the launch of this program, the client has achieved exponential growth in member registrations. The client has benefited from:

3x
Increase in engagement
11x
Increase in enrollment rate
80%
Growth in active memberships