Today’s business world poses significant competition in every segment of the industry. Customers serve as the key to all businesses. To meet the customers’ requirements and satisfaction, it is important to understand what customers want. This applies to both customer relations with existing customers and also to new customers. Moreover, there is a shift in industry from transaction-centric to more customer-centric industry. Also, there are changes in consumer behaviour, where customers’ consideration is not only on product quality, but also on the service quality.
The shift explains the increase in popularity of Customer Relationship Management (CRM). CRM is a business strategy which is designed to help company to understand the needs of its potential and current customers and fulfilling their expectations by delivering them best product and services than its competitors in that industry. Effective CRM brings profits in the company and helps in improvements of overall financial position of the business via continuous profits. The basic objective of CRM is acquiring new customer and retaining existing customer to develop long-term relationship with customers and improve performance through customer loyalty.
One of the example of service company that using CRM strategies effectively in delivering not only good product quality but also good service quality to the customers is CINEMA 21. CINEMA 21, is the largest cinema group in Indonesia that began its work in the entertainment industry since 1987. For more than 30 years, CINEMA 21 is committed to provide the best viewing experience to the people. CINEMA 21 keeps abreast of technological developments by completing its facilities such as 2D and 3D. To improve the service to the audience, there is also a cinema with the latest audio system “Dolby Atmos” which is now in 50 Cinema XXI screens.
Since customers have played an important role in every businesses, therefore, it is important for businesses to acquire new customer for the success of the business by paying attention to customer’s satisfaction. One of the CRM objectives is to acquire new customers, CINEMA 21 acquires new customer by providing mobile ticketing system (Mtix), for booking online tickets through the apps or the website, in which the customers are able to purchase ticket in advance and avoid long queue. Also, Mtix allows the customer to scan the booking barcode from their phone in order to print the movie ticket resulting in more practical process. CINEMA 21 also has numerous partnership or affiliation with some banks like BCA, Mandiri, Digibank DBS and etcetera, where there are promotion granted for the certain banking card holder. In addition, CINEMA 21 also affiliates with Tokopedia. When the customers top up certain amount of the Mtix through Tokopedia, they will get cashback. Furthermore, to acquire new customers, CINEMA 21 is also active in engaging in social media campaign. There are weekly updates of new upcoming movies with various promotion the cinema can offer through social media. For instance, there is buy-one-get-one free ticket promotion for an upcoming movie and this promotion is posted through the social media such as Instagram. This strategy is effective because social media has been one of the most influential platform for business communication and marketing purpose.
After acquiring new customers, it is important for the businesses to retain the existing customer by gaining their loyalty to the products. It is important for CINEMA 21 to have high customer loyalty due to the heavy competition in the industry. Customer satisfaction has become one of the crucial factors in retaining the existing customers. In order to satisfy their customers, CINEMA 21 gives excellent service quality to the customer. CINEMA 21 offers food and beverage service inside the theatre which allows the customers to avoid long queue in purchasing the popcorn and drink. Also, the movie that aired on CINEMA 21 starts on the scheduled time punctually, so the customers do not waste so much time waiting. Besides Mtix, CINEMA 21 also has affiliation with Tix ID, the online ticketing system, that gives more promotion and benefit to the customers. Tix ID offers buy-one-get-one free ticket promotion every Wednesday. This strategy will attract many existing customers because usually Wednesday is the day where new movie releases. Furthermore, Tix ID also offers voucher worths IDR 25,000 if the existing customers who already have an account in Tix ID, invite their friends to Tix ID.
The CRM strategy that is implemented in CINEMA 21 is efficient and effective. The in-theatre selling of popcorn and drink will not only retain the existing customer, but also will be able to attract new customers through the recommendation or word-of-mouth by the existing customers. This similar goes to the promotion that is made by Tix ID. The promotion of buy-one-get-one free ticket every Wednesday and the voucher benefits by inviting friends might be able attract both new customers and the existing customers.
Although the strategies currently implemented by CINEMA 21 deliver numerous advantages, it appears that there is still room for improvement in retaining the existing customers. Their strategy might be perfect if CINEMA 21 provides loyalty program to their existing customers. This can be done by having membership card where the customers can get more benefits from the membership such as birthday treat, cinema anniversary treat, and etcetera.
In conclusion, due to the industrial shift from being transaction-centered to customer-centered, putting customers at the core of every business, understanding and fulfilling their needs, is now a norm that every business must follow. CINEMA 21 is one of the many businesses that understand the importance of the implementation of CRM startegy to their business. CRM strategy has helped CINEMA 21 to move their perception away from improving products to increase revenue by improving customer relationship to increase sales and sustain revenue. Through CRM strategy, CINEMA 21 can develop long-term relationship with its customers. However, CRM seeks to establish not only long-term relationship but also seeks trusting committed relationship with customers and genuine concern for the delivery of excellent quality services. Since customers serves as the most important personnel, CINEMA 21 is always committed to give positive responses to customer ideas and always strives to achieve long-term benefits.