Discounting sessions is likely to:
Increase the amount spent on concessions
Increase the number of concession items purchased
Possibly increase the number of theatre visits
Possibly increase overall spending during theatre visits
Motivate significant numbers of moviegoers who didn’t usually buy concessions to take advantage of a discount
Predictably, a greater proportion of the $4 discount group recorded positive changes to measures including greater spending, items purchased, and visitation compared to lower discount tiers and control groups across both exhibitors.
This result is consistent with the initial surge in redemptions among the $4 discount group, which, over the course of the trial, plateaued to levels recorded among the other discount groups.
Notably, however, a breakdown of per-admit-spend at Exhibitor A showed that the $2 discount group spent more ($9.19 per-admit) than the $4 discount group ($8.90), raising the possibility that a larger discount does not necessarily increase overall spend.
This research demonstrates the significant potential of a relatively modest tactical manoeuvre – a discount on a large popcorn – on spending. We know that exhibitors have a strong appetite for experimentation, but maximising investment in promotions must rise on sound data. Movio’s data and insights capture profiles of moviegoers, combining offline and online transactional data, demographic profiles, online activity, marketing engagement and other external data sources to help exhibitors grow audiences and revenue.
Having seen such improvements from discounts with the historically least engaged purchasers of concessions with these exhibitors, there appears to be enormous opportunity in how cinemas can use price variation to improve the engagement of their moviegoers, and, using Movio’s historical data, segmenting certain moviegoers to create highly effective and individually targeted offerings to deliver the greatest experiences possible.
But there are still further questions we want to explore. In the future, with a follow-up study or re-run with larger sales numbers, we could establish the elasticity of such a pricing model, and relate individuals’ past behaviour in order to customise offers to individual moviegoers.
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Already a Movio customer? Contact your Account Manager to see how you could run similar experiments and incorporate Movio data to inform targeted discount offerings.