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RFM: The Triple Threat Designed To Increase High Value Moviegoers

Get Even The Least Interested Moviegoer Into Your Cinema

In our recent video, Dr Karthik Subra and Matthew Liebmann spoke about the effectiveness of RFM segmentation and how it can empower marketers to analyze and action their customers’ behavior. RFM is a proven marketing model for behavior-based customer segmentation. It groups customers based on their transaction history: 

  • Recency - when they last visited
  • Frequency - how often they come
  • Monetary - how much they spend

Using a combination of the three parameters is important, as this will give you the most accurate report of your moviegoer base and their lifetime value. It’s not only about how much money they spend, but how often they spend it and how frequently they come. If they visited your cinema recently, their value increases. If they visit often, their value increases. And if they spend more than others, they are considered even more valuable. By combining these features, we can then rank moviegoers by their value.

We’re introducing RFM analysis to our Audience Insights and Movie Insights tools. By utilizing RFM models with Movio’s AI-driven propensity algorithms, you can easily identify which movie a member is most likely to see, who is most valuable, and exactly what you need to do to get moviegoers into your cinema.

How it works 

In Movio’s RFM model, moviegoers are segmented by their recency, frequency, and how much they spend on average. They are then segmented according to whether they fall above or below the median value for each attribute.

Medians were chosen for this model so as to provide a stable, non-volatile metric by which we can capture the evolution of member behavior across all segments. Medians also guarantee even distribution of moviegoers across all eight segments, each of which uniquely captures moviegoer characteristics and behaviors.

  • Loyal moviegoers - these are your most valuable moviegoers who have gone to the cinema recently, visit often, and spend largely 
  • At risk - these are moviegoers who go to cinemas often and spend a lot, but haven’t visited recently 
  • Potential loyalist - these moviegoers have been to the cinema recently and have spent a lot, but don’t really go often
  • Needing attention - these moviegoers spend a lot each time they visit your theaters but don’t do it often and haven’t attended recently
  • Promising - these moviegoers have gone to the cinema recently and attend frequently, but do not spend a lot when they visit
  • Recent customers - these moviegoers have been to the theater lately, but do not go often and do not spend a lot 
  • About to sleep - these are moviegoers who visit the cinemas often, but have not attended recently and do not spend a lot
  • About to be lost - these are your least valuable moviegoers who have not been to the theaters recently, do not come often and also do not spend a lot 
Loyal MoviegoersArrow_Up.pngArrow_Up.pngArrow_Up.png
Potential LoyalistArrow_Up.pngArrow_Down.pngArrow_Up.png
Recent CustomersArrow_Up.pngArrow_Down.pngArrow_Down.png
At RiskArrow_Down.pngArrow_Up.pngArrow_Up.png
About to SleepArrow_Down.pngArrow_Up.pngArrow_Down.png
Needs AttentionArrow_Down.pngArrow_Down.pngArrow_Up.png
About to be LostArrow_Down.pngArrow_Down.pngArrow_Down.png

Not all moviegoers are created equally, even if they have an identical propensity to see the same movie. Some may attend often but spend very little, whereas families, for example, might come sparingly but spend a large amount when they do. 

By working out how valuable each moviegoer is based on which RFM segment they sit in, you are able to stage an intervention and tailor your messages and offers to entice them into your theaters to experience the magic of the movies. 

The power of Moviegoer Value Segments 

With the introduction of Moviegoer Value Segments, exhibitors can now:

  • View segments based on RFM analysis without having to perform complex calculations
  • Combine RFM analysis with our intelligent AI-driven propensity algorithms to craft highly targeted and personalized marketing campaigns
  • Scale offers and incentives based on the value of each segment
  • Create marketing strategies to move moviegoers from low value segments to high value segments to increase the overall health of your program

For moviegoers, this means that they can now receive the most relevant movie recommendations and incentives based on their moviegoing behavior, including their recency, frequency and spend history. For example:

  • ‘Promising moviegoers’ are those that have come recently, attend often, but don’t spend a lot - so you could offer them an upgrade to a premium cinema experience to incentivize them to spend more when they attend
  • Moviegoers who ‘need attention’ are those who haven’t attended recently, don’t attend frequently, but they spend a lot when they do - so you could send them a special family pricing or concession upgrade offer to incentivise them to visit again

The bottom line 

RFM segmentation is a proven marketing model to help you to find your best moviegoers, understand their behavior, and then run targeted campaigns to increase sales, satisfaction, and their lifetime value.

Moviegoer Value Segments are automatically available for exhibitors on Movio’s Innovation Agreements. Contact your Account Manager for further information.

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