THE CLARUS Blog

What’s Going on with MoviePass?

A customer’s trust in a brand is one of the most important aspects in building loyalty.

According to a recent report, MoviePass membership dropped 90 percent in the past year: From a high of three million members to around 225,000.

What’s causing these members to leave?

 

Focus on Customer-centricity

In June 2018, MoviePass officials claimed they had more than three million members of its MoviePass subscription loyalty program. Members paid $9.95 per month, which allowed them to see one movie every single day.

But that model proved difficult to maintain and in August 2018 they changed it to a three-movies-per-month plan.

In August 2018, MoviePass converted some subscribers on annual subscription plans to the three-movies-per-month subscription plan.

In doing this, MoviePass offered annual subscribers the option of either canceling or refunding their annual subscription or continuing with the new three-movies-per-month subscription plan.

These changes and options didn’t fly with MoviePass members. Program members usually react negatively to sudden changes.

The MoviePass original business model for the program was tied to leveraging customer data in a positive way. But instead of always keeping the focus on the customer, financial considerations became a priority.

Sure, there can be financial considerations when growing a loyalty program. But brands needs to find that delicate balance between customer-centricity and profitability.

 

Customer Loyalty Begins with Trust

While MoviePass addressed changing customer needs at the outset of its subscription loyalty program, it became necessary to address its own profitability needs and the two were mutually exclusive.

So, while people initially trusted they would get an incredible deal, the program had to be changed.

Last month, MoviePass introduced a retooled plan called Uncapped for $14.95 per month. This plan allows customers to see one movie daily as the original model did, but now there are restrictions.

According to MoviePass, a member’s movie choices may be restricted due to excessive individual usage which negatively impacts system-wide capacity.

Besides being totally ambiguous, this membership stipulation certainly doesn’t sound too welcoming, customer-centric, or trustworthy.

For customers who want to be loyal to a brand, trust looms as the most important asset.

Brands that stay customer-centric and trustworthy will always be rewarded in the long run.

 

Subscription Programs Should be Built to Use

The goal for any brand that has a subscription element should be to encourage members to use it.

Here’s what happens when a loyalty program can becomes part of peoples’ daily lives.

Modifying rules and restrictions of a program that don’t have the best interests of your customers in mind won’t be successful in the long run.

​One of the best things a brand can do to encourage members to use their program frequently is simplicity. The ease of use factor in any subscription program sparks elevated engagement levels.

 

Keep it About the Fans

Whether it’s a movie ticket membership or a retail loyalty program, here are just a few things to remember during this day and age where retaining customer loyalty is more challenging than ever:

Start with a customer-centric perspective and never let go of this all-important loyalty ingredient.

Develop strong customer relationships through program interactions that will build sustainable trust.

Keep it simple and manage change carefully. Your program will be more inviting if it’s simple to use and it will keep members coming back for more.

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