Introduction
Are you the proud owner of a multiplex cinema and looking for ways to improve profitability and sales? Or are you planning to start a multiplex cinema business in the near future and research the key strategies for success?
The number of people visiting movie theaters around the world is still growing, and the global multiplex cinema business sector is booming. According to Statista, the global multiplex market is expected to generate a total of 43.4 billion euros in 2021.
To stay ahead of the competition and take advantage of industry potential, you need solid strategies that can help you increase sales and profitability. This blog post will discuss the most effective multiplex cinema strategies that you can implement in your business to achieve the desired results.
Optimize the online reservation system
In order to increase the sales and profitability of your multiplex cinema, it is essential to optimize your online reservation system. A strong online booking system enables customers to purchase tickets quickly and with great convenience, leading to a potential increase in sales. Here are some tips to help you get the most out of your online reservation system:
Make the online reservation process transparent and intuitive:
The online booking process should be smooth and simple. Make sure your online reservation system is easy to use and intuitive to navigate. This ensures customers can purchase tickets quickly and with minimal disruption. Keep the booking process as short and simple as possible. Use visuals and other design elements to ensure customers see your entire booking process as easy and accessible.
Offer special offers, discounts and promotions:
Online reservations can be made even more attractive and convenient for customers if special discounts and promotions are offered. Offering deals, discounts, and exclusive offers can entice customers to make repeat purchases while maximizing your multiplex’s sales and profitability. This can include discounts for popular movies, bulk purchases, and discounts for large bookings.
Introduce a mobile app for convenience:
A mobile app for your online reservation system can help make it more convenient for customers to purchase tickets. Having an app for your multiplex cinema is especially useful for patrons who don’t have access to a computer, as they can purchase tickets directly from their phone.
Use smart technology and automation:
Using smart technology and automation in your online reservation system can streamline the process and increase sales. Automated services make it easy for customers to find show times, select seats and purchase tickets with minimal effort.
Calculation example:
For example, if your average sale amount is 0, optimizing your online reservation system can help you increase your sales by 10%. This would increase your total revenue by 00 over a period of one month.
By optimizing your online reservation system, you can easily make your multiplex cinema more profitable and increase sales. Ensuring the booking process is easy and intuitive, offering discounts and offers, introducing a mobile app and using smart technology and automation can help customers purchase tickets quickly and conveniently, which ultimately led to increased sales and profits.
Offer loyalty and rewards programs
Loyalty and rewards programs can be a great way to increase sales and maximize profitability for a multiplex theater business. By providing rewards to repeat customers, businesses can encourage loyalty and entice customers to make purchases. Additionally, rewards programs can create long-term customers and can lead to increased word-of-mouth advertising.
To get the most out of a loyalty and rewards program, multiplex theaters should consider offering discounts for repeat purchases, allowing patrons to accumulate points to redeem for rewards and offering discounts and discounts. promotions via a members-only area with exclusive access. By encouraging customers to make multiple visits, businesses can highlight their loyalty program as an attractive feature. Also, offering exclusive discounts and promotions in a members-only area can spark interest in customers and entice them to join.
Impact on sales and profitability
A loyalty and rewards program can have a huge impact on the sales and profitability of a multiplex theater business. This strategy can increase customer retention, leading to repeat visits and larger orders. Also, loyal customers typically spend more than new customers, increasing opportunities for higher return on investment. Finally, promoting a loyalty program can make your multiplex cinema stand out from the competition and present itself as a potential draw for new customers.
Calculation example:
For example, if your multiplex theater business spends per month on rewards for existing loyal customers, and those customers purchase 0 in additional tickets over four visits, that could result in an additional 0 per month in sales.
- Monthly spend on rewards:
- Monetary value of awards: 0
- Increase in monthly sales: 0
Create attractive promotions and discounts
Offering promotions and discounts to customers of a multiplex cinema business helps increase sales and profitability. Promotions can be used to drive a larger audience by enticing customers to buy more tickets or upgrade their ticket type. Discounts can also be used to encourage patrons to have a longer stay at the theater. For example, offering discounted tickets for matinee screenings or weekday screenings can attract more customers and increase sales. However, it is important to consider profitability when creating promotions and discounts.
To ensure profitability, it is important to carefully plan the types of promotions and discounts to use. For example, offering a discount on tickets and food and beverages can be a good promotional strategy. Offering discounts through online ticketing sites can also help increase sales. Additionally, offering loyalty programs and discounts for returning customers can benefit sales and profits.
It is also important to consider the costs associated with offering promotions and discounts when calculating profitability. This includes the cost of discounts and promotions as well as the cost of marketing offers. To estimate the potential profitability of offering discounts and promotions, a cost-benefit analysis should be performed. This includes calculating the cost of discounts, the cost of marketing, and the estimated uplift in sales. By considering all the costs associated with offering promotions and discounts, it is possible to maximize profitability.
Example calculation: Suppose a current ticket price is and a promotion or discount is offered at a 10% discount. To calculate the potential profitability, the original cost of the ticket, the discount amount and the estimated increase in sales must be taken into account. For example, if the cost of the base tickets is , the discount reduces the ticket price to .50. If a 10% increase in sales is estimated, the total amount of incremental sales would be .50 x 10% = .35. This means that the total amount of additional revenue generated by the rebate would be .35 x 10% = .135.
By offering attractive promotions and discounts, multiplex cinema businesses can increase sales and profitability. This strategy can be used to attract more customers and encourage them to stay in the theater longer. However, it is important to carefully calculate the costs associated with offering promotions and discounts and to ensure that the increased sales outweigh the cost of the discounts.
Diversify product offerings
The primary strategy to increase multiplex sales and profitability is to diversify product offerings. More than offering movies, the multiplex should consider expanding its product selection by offering an assortment of snacks, food and beverages, as well as merchandise and other related goods. The idea is simple – the more variety and selection customers have, the more likely they are to buy from the multiplex.
To implement this strategy, the multiplex should first assess the types of products likely to be in demand with its customer base. Popular snacks like popcorn and candy should always be stocked up, along with other types of food items like pizza or hot dogs. Additionally, current movie-related licensed merchandise, as well as promotional items, can all help increase revenue. The trick, however, is to ensure that a variety of products are available to appeal to all types of customers.
Once the product selection is established, the multiplex should focus on pricing each item to maximize sales. For snacks, it’s important to offer a variety of price points to appeal to customers with different budgets. Having an assortment of snack items in the and range can help encourage customers to purchase multiple items and increase revenue. Additionally, it’s important to keep prices competitive, as customers can still purchase items from other dealerships outside of the multiplex.
At the same time, it is important to consider the cost of goods versus the selling price. For example, if the cost of a bag of popcorn is .50, it is important to set the price at a rate that will always yield a profit. A good rule of thumb is to aim for twice the cost of the item as the selling price. Therefore, the bag of popcorn mentioned above should be sold for , resulting in a profit of .50.
By offering products beyond movie ticket sales, multi-theatres can increase their sales and profitability. The key is to ensure that the product selection is varied and appealing, while the prices are competitive and provide a good return on investment. With this strategy in place, multi-cinemas should be well on their way to growing sales and profitability.
Focus on customer service excellence
Excellence in customer service can be a powerful weapon in a multiplex theater company’s arsenal. This is an often overlooked strategy when it comes to increasing sales and profitability. In today’s customer-centric economy, providing high-quality customer service is a key differentiator in determining business success.
Tips and Tricks to Improve Customer Service Excellence:
- Ensure customer expectations are exceeded with every purchase.
- Keep your staff well trained in product knowledge, sales strategies and customer service.
- Identify and resolve customer grievances quickly and efficiently.
- Provide an atmosphere of cleanliness and comfort to customers.
- Ensure a consistently pleasant customer experience.
- Provide customers with incentives to return for repeat purchases.
Focusing on excellence in customer service will lead to increased sales and profitability for a multiplex cinema business. Customers who have an above and beyond experience will be more likely to make repeat purchases and refer others, which leads to larger customers and increased sales. According to a Harvard Business Review study, “customer experience is worth up to twice as much as price in predicting customer loyalty.”
Calculation impact example:
For example, if a multiplex cinema business can increase customer loyalty by 10%, sales could potentially increase by 20%. This could equip 0,000 in additional sales, based on an estimated total of million in sales within the loyalty timeframe. This additional revenue could lead to a significantly increased profit, assuming the costs remain the same.
Ultimately, focusing on customer service excellence is a viable and impactful strategy to increase both sales and profitability for a multiplex theater business. It allows the company to differentiate themselves from their competitors, as well as build customer loyalty, which leads to a growing customer base and greater sales.
Conclusion
Increasing the sales and profitability of a multiplex cinema business is important to making it a successful business. Having clear strategies in place makes a huge difference in achieving the desired results. From optimizing the online reservation system to leveraging digital media for marketing, the strategies discussed above will help you increase your multiplex cinema business sales and profitability.
By setting the right KPIs and focusing on customer service excellence, you can ensure the success of your multiplex cinema business and turn it into a profitable business.