The Entertainment Group is the original publisher of the popular Entertainment Book and Entertainment Digital Membership Program. The company has agreements with over 14,000 merchants in Australia and New Zealand, providing customer value and discounts across a variety of industries and services including dining, shopping, travel and attractions.
Challenge
The business faced several challenges which posed significant risks to the ongoing profitability of the business, including major operating expenses due to a fully physical model, overcomplicated set of products and pricing schedule, and a lack of member information and communication capabilities to up-sell higher-priced subscriptions.
Solution
Loyalty & Reward Co were engaged by Entertainment to facilitate and execute a full business transformation strategy.
This complete transformation included a comprehensive product redesign strategy (including the launch of three new digital membership tier), a new product launch strategy, a digital marketing and PR strategy, technology review and future roadmap strategy, development of an innovation team, a corporate sales strategy, and a fundraiser channel strategy.
Impact
The digital transformation project delivered multiple tangible benefits to the company. This included enhanced digital capability which the company used to introduce membership options tailored to specific segments, and allowed members to purchase at any time, neutralising revenue seasonality.
Average revenue per membership purchased increase by 29% as a result. The shift to fully digital removed $14 million in annualised operating expenditure (approx. 22% of gross revenue at the time).
