HOYTS launched HOYTS Rewards loyalty program in 2010. Members pay an annual $13 subscription, which includes a free movie ticket. Members earn 10 points for every dollar they spend, plus access to discount movies and Candy Bar products.
Challenge
The program struggled with several core issues, including limited marketing cut-through (across website, App, and physical locations), a significant churn rate and no lifecycle marketing activity. The design also limited the ability to upsell and cater to different segments. A limited focus and understanding of test & learn analytics for campaigns restricted meaningful program evolution.
Solution
After extensive review, a full redesign of HOYTS Rewards program and customer lifecycle strategy was implemented to address all core issues. This included the introduction of a free tier to complement the paid tier, an expansion of benefits, the negotiation of an earn and burn partnership with Qantas Frequent Flyer, and the design of a sophisticated lifecycle marketing strategy.
A parallel staff program was implemented to encourage frontline employees to focus on registering new members for the program.
Impact
Within 12 months of launch, the member base tripled. The Qantas partnership was hugely successfully, with large number of points redeemed on movie tickets and Candy Bar. The staff program was expanded to include key performance indicators to support improvements in customer service.
