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Cinema Preordering : Overcome the popcorn pinch with mobile ordering

Cinema Preordering : Overcome the popcorn pinch with mobile ordering

Cinema Preordering : Overcome the popcorn pinch with mobile ordering

The cinema experience has changed significantly since its heydays of the 1950’s. Then, it was all about glitz and glamour as people dressed up for a night out, not just to see the latest release but to share a wholly immersive experience with like-minded people. Over the years, however, with the advent of, first, television, and then consumable recordings (VHS tapes, DVD’s and now online streaming) there has been a constant and unremitting challenge to the cinema’s pre-eminent position.

It’s hard to see how its role as the premier outlet for new releases will ever be undermined, but the cinema sector is constantly changing; adapting for financial security in the face of stagnating attendance figures and a more demanding customer experience. Change has come in many forms. Multiplex venues have replaced the large single town centre cinema of old, and IMAX and 3-D venues have sprung up to capitalise on the technical wizardry of today’s film-makers. In the USA there are cinemas with seats that move in synchronization with the on-screen action, while in the UK there is a trend for more comfortable, reclining seats. Other, slightly more bizarre, attempts to revolutionise the sector have included sensory experiences such as the “edible cinema” which included a range of drinks and nibbles to be enjoyed at pre-determined moments during a film’s screening.

Cinema venues are valuable real estate assets with revenue-generating opportunities beyond the screening of the latest blockbuster. As part of their commercial metamorphosis some venues are screening live performances of opera, while others that are more strategically located, offer their space for conferences, product launches and other similar business-oriented opportunities. What they all have in common is the ability to accommodate relatively large numbers of people, and the opportunity to provide refreshments to a “captive audience” at a single event.

The role of refreshments in the cinema experience is legendary. For many customers, it is a significant component of their cinema visit. But whether it’s popcorn, hot dogs, Coca-Cola or sharing bags of chocolates, the financial benefits of retail catering are almost as important as the ticket revenues. On average, sales of refreshments generate 20% of a cinema’s revenues, but account for nearly 40% of its profits. The problem is that many cinemas’ retail offering is regarded as limited, unappetising, or over-priced so customers are put off parting with their hard-earned cash. And if there is a queue at the counter, customers will definitely think twice about making a purchase.

There’s no doubt that cinemas recognise the importance of the customer experience and are turning to technology to improve this. Reserving your seat to see a film in a cinema is almost as common as booking a table in a restaurant online. Most of the mainstream cinema groups – and many independent cinemas – now offer this service, and in doing so, are capturing invaluable data about their customers’ profiles and buying behaviour.

But they’re missing a trick.

When customers buy cinema tickets online, in an ideal world they should also be able to pre-order their refreshments at the same time. And imagine the positive reaction from customers if there was a discount, or some other value added benefit, offered for buying – and paying – for these in advance. But the major advantage of pre-ordering refreshments is that customers are spared the frustration of joining a cash order queue, where the order process can be uncomfortably long; “the popcorn pinch point”. Pre-order customers can head straight to a designated pre-order collection point where they can collect their ready-prepared order.

The Preoday online ordering platform is designed for this very purpose; to enable cinema venues to integrate our pre-ordering system with their online ticketing platform so as to capture additional revenues at the point of ticket purchase. Our partnership with Ticketmaster illustrates how this is working with large scale event venues, similar to cinemas.

The benefits of online ordering are numerous.

From the customers’ perspective, they don’t have to carry cash with them to the cinema and, if the discount opportunity is applied by the venue, they are getting a great deal. With or without any discount, however, evidence shows that the value of orders placed in advance online are typically more than 40% higher than cash transactions.

For the cinema, apart from the cashflow benefit, the retail team can use the online ordering data to help plan and manage their own purchasing and production levels more effectively. Furthermore, customer profile and purchasing data can be used for personalised marketing opportunities to further enhance the cinema’s relationship with its customers. A true win-win opportunity.

Other Blog Articles

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

The cinema experience has changed significantly since its heydays of the 1950’s. Then, it was all about glitz and glamour as people dressed up for a night out, not just to see the latest release but to share a wholly immersive experience with like-minded people. Over the years, however, with the advent of, first, television, and then consumable recordings (VHS tapes, DVD’s and now online streaming) there has been a constant and unremitting challenge to the cinema’s pre-eminent position.

It’s hard to see how its role as the premier outlet for new releases will ever be undermined, but the cinema sector is constantly changing; adapting for financial security in the face of stagnating attendance figures and a more demanding customer experience. Change has come in many forms. Multiplex venues have replaced the large single town centre cinema of old, and IMAX and 3-D venues have sprung up to capitalise on the technical wizardry of today’s film-makers. In the USA there are cinemas with seats that move in synchronization with the on-screen action, while in the UK there is a trend for more comfortable, reclining seats. Other, slightly more bizarre, attempts to revolutionise the sector have included sensory experiences such as the “edible cinema” which included a range of drinks and nibbles to be enjoyed at pre-determined moments during a film’s screening.

Cinema venues are valuable real estate assets with revenue-generating opportunities beyond the screening of the latest blockbuster. As part of their commercial metamorphosis some venues are screening live performances of opera, while others that are more strategically located, offer their space for conferences, product launches and other similar business-oriented opportunities. What they all have in common is the ability to accommodate relatively large numbers of people, and the opportunity to provide refreshments to a “captive audience” at a single event.

The role of refreshments in the cinema experience is legendary. For many customers, it is a significant component of their cinema visit. But whether it’s popcorn, hot dogs, Coca-Cola or sharing bags of chocolates, the financial benefits of retail catering are almost as important as the ticket revenues. On average, sales of refreshments generate 20% of a cinema’s revenues, but account for nearly 40% of its profits. The problem is that many cinemas’ retail offering is regarded as limited, unappetising, or over-priced so customers are put off parting with their hard-earned cash. And if there is a queue at the counter, customers will definitely think twice about making a purchase.

There’s no doubt that cinemas recognise the importance of the customer experience and are turning to technology to improve this. Reserving your seat to see a film in a cinema is almost as common as booking a table in a restaurant online. Most of the mainstream cinema groups – and many independent cinemas – now offer this service, and in doing so, are capturing invaluable data about their customers’ profiles and buying behaviour.

But they’re missing a trick.

When customers buy cinema tickets online, in an ideal world they should also be able to pre-order their refreshments at the same time. And imagine the positive reaction from customers if there was a discount, or some other value added benefit, offered for buying – and paying – for these in advance. But the major advantage of pre-ordering refreshments is that customers are spared the frustration of joining a cash order queue, where the order process can be uncomfortably long; “the popcorn pinch point”. Pre-order customers can head straight to a designated pre-order collection point where they can collect their ready-prepared order.

The Preoday online ordering platform is designed for this very purpose; to enable cinema venues to integrate our pre-ordering system with their online ticketing platform so as to capture additional revenues at the point of ticket purchase. Our partnership with Ticketmaster illustrates how this is working with large scale event venues, similar to cinemas.

The benefits of online ordering are numerous.

From the customers’ perspective, they don’t have to carry cash with them to the cinema and, if the discount opportunity is applied by the venue, they are getting a great deal. With or without any discount, however, evidence shows that the value of orders placed in advance online are typically more than 40% higher than cash transactions.

For the cinema, apart from the cashflow benefit, the retail team can use the online ordering data to help plan and manage their own purchasing and production levels more effectively. Furthermore, customer profile and purchasing data can be used for personalised marketing opportunities to further enhance the cinema’s relationship with its customers. A true win-win opportunity.

Other Blog Articles

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

The cinema experience has changed significantly since its heydays of the 1950’s. Then, it was all about glitz and glamour as people dressed up for a night out, not just to see the latest release but to share a wholly immersive experience with like-minded people. Over the years, however, with the advent of, first, television, and then consumable recordings (VHS tapes, DVD’s and now online streaming) there has been a constant and unremitting challenge to the cinema’s pre-eminent position.

It’s hard to see how its role as the premier outlet for new releases will ever be undermined, but the cinema sector is constantly changing; adapting for financial security in the face of stagnating attendance figures and a more demanding customer experience. Change has come in many forms. Multiplex venues have replaced the large single town centre cinema of old, and IMAX and 3-D venues have sprung up to capitalise on the technical wizardry of today’s film-makers. In the USA there are cinemas with seats that move in synchronization with the on-screen action, while in the UK there is a trend for more comfortable, reclining seats. Other, slightly more bizarre, attempts to revolutionise the sector have included sensory experiences such as the “edible cinema” which included a range of drinks and nibbles to be enjoyed at pre-determined moments during a film’s screening.

Cinema venues are valuable real estate assets with revenue-generating opportunities beyond the screening of the latest blockbuster. As part of their commercial metamorphosis some venues are screening live performances of opera, while others that are more strategically located, offer their space for conferences, product launches and other similar business-oriented opportunities. What they all have in common is the ability to accommodate relatively large numbers of people, and the opportunity to provide refreshments to a “captive audience” at a single event.

The role of refreshments in the cinema experience is legendary. For many customers, it is a significant component of their cinema visit. But whether it’s popcorn, hot dogs, Coca-Cola or sharing bags of chocolates, the financial benefits of retail catering are almost as important as the ticket revenues. On average, sales of refreshments generate 20% of a cinema’s revenues, but account for nearly 40% of its profits. The problem is that many cinemas’ retail offering is regarded as limited, unappetising, or over-priced so customers are put off parting with their hard-earned cash. And if there is a queue at the counter, customers will definitely think twice about making a purchase.

There’s no doubt that cinemas recognise the importance of the customer experience and are turning to technology to improve this. Reserving your seat to see a film in a cinema is almost as common as booking a table in a restaurant online. Most of the mainstream cinema groups – and many independent cinemas – now offer this service, and in doing so, are capturing invaluable data about their customers’ profiles and buying behaviour.

But they’re missing a trick.

When customers buy cinema tickets online, in an ideal world they should also be able to pre-order their refreshments at the same time. And imagine the positive reaction from customers if there was a discount, or some other value added benefit, offered for buying – and paying – for these in advance. But the major advantage of pre-ordering refreshments is that customers are spared the frustration of joining a cash order queue, where the order process can be uncomfortably long; “the popcorn pinch point”. Pre-order customers can head straight to a designated pre-order collection point where they can collect their ready-prepared order.

The Preoday online ordering platform is designed for this very purpose; to enable cinema venues to integrate our pre-ordering system with their online ticketing platform so as to capture additional revenues at the point of ticket purchase. Our partnership with Ticketmaster illustrates how this is working with large scale event venues, similar to cinemas.

The benefits of online ordering are numerous.

From the customers’ perspective, they don’t have to carry cash with them to the cinema and, if the discount opportunity is applied by the venue, they are getting a great deal. With or without any discount, however, evidence shows that the value of orders placed in advance online are typically more than 40% higher than cash transactions.

For the cinema, apart from the cashflow benefit, the retail team can use the online ordering data to help plan and manage their own purchasing and production levels more effectively. Furthermore, customer profile and purchasing data can be used for personalised marketing opportunities to further enhance the cinema’s relationship with its customers. A true win-win opportunity.

Other Blog Articles

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

Overcoming the popcorn pinch point; Cinemas using pre-order platforms to triple profit margins

The cinema experience has changed significantly since its heydays of the 1950’s. Then, it was all about glitz and glamour as people dressed up for a night out, not just to see the latest release but to share a wholly immersive experience with like-minded people. Over the years, however, with the advent of, first, television, and then consumable recordings (VHS tapes, DVD’s and now online streaming) there has been a constant and unremitting challenge to the cinema’s pre-eminent position.

It’s hard to see how its role as the premier outlet for new releases will ever be undermined, but the cinema sector is constantly changing; adapting for financial security in the face of stagnating attendance figures and a more demanding customer experience. Change has come in many forms. Multiplex venues have replaced the large single town centre cinema of old, and IMAX and 3-D venues have sprung up to capitalise on the technical wizardry of today’s film-makers. In the USA there are cinemas with seats that move in synchronization with the on-screen action, while in the UK there is a trend for more comfortable, reclining seats. Other, slightly more bizarre, attempts to revolutionise the sector have included sensory experiences such as the “edible cinema” which included a range of drinks and nibbles to be enjoyed at pre-determined moments during a film’s screening.

Cinema venues are valuable real estate assets with revenue-generating opportunities beyond the screening of the latest blockbuster. As part of their commercial metamorphosis some venues are screening live performances of opera, while others that are more strategically located, offer their space for conferences, product launches and other similar business-oriented opportunities. What they all have in common is the ability to accommodate relatively large numbers of people, and the opportunity to provide refreshments to a “captive audience” at a single event.

The role of refreshments in the cinema experience is legendary. For many customers, it is a significant component of their cinema visit. But whether it’s popcorn, hot dogs, Coca-Cola or sharing bags of chocolates, the financial benefits of retail catering are almost as important as the ticket revenues. On average, sales of refreshments generate 20% of a cinema’s revenues, but account for nearly 40% of its profits. The problem is that many cinemas’ retail offering is regarded as limited, unappetising, or over-priced so customers are put off parting with their hard-earned cash. And if there is a queue at the counter, customers will definitely think twice about making a purchase.

There’s no doubt that cinemas recognise the importance of the customer experience and are turning to technology to improve this. Reserving your seat to see a film in a cinema is almost as common as booking a table in a restaurant online. Most of the mainstream cinema groups – and many independent cinemas – now offer this service, and in doing so, are capturing invaluable data about their customers’ profiles and buying behaviour.

But they’re missing a trick.

When customers buy cinema tickets online, in an ideal world they should also be able to pre-order their refreshments at the same time. And imagine the positive reaction from customers if there was a discount, or some other value added benefit, offered for buying – and paying – for these in advance. But the major advantage of pre-ordering refreshments is that customers are spared the frustration of joining a cash order queue, where the order process can be uncomfortably long; “the popcorn pinch point”. Pre-order customers can head straight to a designated pre-order collection point where they can collect their ready-prepared order.

The Preoday online ordering platform is designed for this very purpose; to enable cinema venues to integrate our pre-ordering system with their online ticketing platform so as to capture additional revenues at the point of ticket purchase. Our partnership with Ticketmaster illustrates how this is working with large scale event venues, similar to cinemas.

The benefits of online ordering are numerous.

From the customers’ perspective, they don’t have to carry cash with them to the cinema and, if the discount opportunity is applied by the venue, they are getting a great deal. With or without any discount, however, evidence shows that the value of orders placed in advance online are typically more than 40% higher than cash transactions.

For the cinema, apart from the cashflow benefit, the retail team can use the online ordering data to help plan and manage their own purchasing and production levels more effectively. Furthermore, customer profile and purchasing data can be used for personalised marketing opportunities to further enhance the cinema’s relationship with its customers. A true win-win opportunity.

Other Blog Articles

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