Customer Engagement Report:: Audit & Strategic Plan
Customer Engagement Report:: Audit & Strategic Plan
Customer Engagement Report:: Audit & Strategic Plan
Cineworld Cinemas
CUSTOMER
ENGAGEMENT
REPORT:
Audit & Strategic
Plan
29 SEPTEMBER 2019
EXECUTIVE SUMMARY
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Customer Engagement Report:
Audit & Strategic Plan
TABLE OF CONTENTS
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Customer Engagement Report:
Audit & Strategic Plan
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Customer Engagement Report:
Audit & Strategic Plan
1 INTRODUCTION
In 2018, Cineworld Group plc continued its reign as the UK’s leading cinema operator by
market share based on revenue (Cox, 2018). Following the acquisition of US chain Regal
Cinemas early that year (Martin, 2017), Cineworld Group has become the world’s second-
largest cinema business with more than 9,500 screens in 10 countries (Cox, 2017) under its
five reputable brands, shown in Figure 1. This comes with an increased need to appropriately
manage not only the new outlets that are now part of the company, but also the relationship
with all the customers that come with it. Engagement with these customers is key to
maintaining a strong, at times emotional, bond between them and the brand (Sashi, 2012), as
well as allowing for higher brand loyalty, among other benefits (Jaakkola & Alexander, 2014;
Hollebeek et al., 2016).
As Cineworld Group’s flagship brand, Cineworld Cinemas stands as the face of the
corporation and has rightfully employed more notable customer engagement practices than
its counterparts (McCarthy, 2019). In this report, these practices are evaluated and an
appropriate strategy to maximise Cineworld Cinemas’ customer engagement is presented.
First, the effectiveness of its current practices shall be analysed by means of a customer
engagement audit looking into both its stronger and weaker points. Next, the proposed
strategy is introduced, with in-depth explanations of its benefits and how it tackles the
customer engagement weaknesses identified.
For the audit, an analysis of Cineworld Cinemas’ customer engagement (CE) practices shall
be outlined by Sashi’s (2012) Customer Engagement Cycle, wherein each practice currently
in operation is categorised under a certain phase of the cycle, as shown in Figure 2. The
effectiveness of these practices shall be analysed using relevant models, concepts, and
theories (MCTs) as well as evidence gathered surrounding the practice.
Starting with Connection, the cycle follows a customer’s journey onto true engagement with
the brand, going from one phase to the next (see Figure 2). Each of these phases are analysed
in the coming sections.
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Customer Engagement Report:
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Connection
• Cinema outlets
• Website
• Social Media
Interaction
• Animate: In-store staff
Engagement • Inanimate: Decorations,
self-service tills. etc.
• Online
Advocacy Satisfaction
Customer Engagement
• Prompted through social Cycle • Convenience: Online
media channels (e-WOM) booking system
• Service Recovery
Commitment Retention
• Loyalty program offer: • Mobile application (App)
'Unlimted Card' experience
SERVICE EXPERIENCE
When making the initial connection with the brand, customers can easily realise that they are
purchasing more than mere goods or services. Cineworld Cinemas’ buddle of offerings for
customers, which includes not only the movie being watched but also the confectionary
available, atmospherics, retail items, and facilities, can be considered as an ‘experience’ (Pine
et al., 1999) in that it uses a combination of several goods and services to comprise the overall
benefits being purchased by the customer (Gilmore & Pine, 2002).
In this case, the experience being offered falls under the ‘Entertainment’ Realm (see Figure
3), as the audience are acting as passive participants being ‘fed’, and they are absorbing in
the experience this way, as opposed to being physically within it or surrounded by it, i.e.
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immersed. According to Mehmetoglu & Engen (2011), this realm of experience entails the
customers or participants merely enjoying the sights and sounds provided – which is true for
all fellow cinema chains. This implies that there is a lack of possible competitive advantage
being harnessed; Cineworld Cinemas is not taking advantage of the opportunity to differentiate
itself and cross over into the Aesthetic realm (see Figure 3, Potential position), wherein
customers are invited to become more immersed into the experience. This can be done by
utilising the surroundings and environment that the cinema provides its visitors, which can be
emphasized as a key part of their service encounter.
Figure 3: Current and Potential Position of Cineworld’s Offerings in the Four Realms of Experience
Source: Based on Pine & Gilmore (1998)
SERVICE ENCOUNTER
Any time a customer interacts with the brand, a service encounter occurs (Bitner et al., 1990).
Since it falls under the Interaction phase in the CE cycle, it potentially may have critical
consequences in that it is the bridge that leads to satisfaction (Jones & Suh, 2000; Sashi,
2012). In that sense, service encounters can be considered opportunities to reinforce service
quality, establish and build trust, as well as build brand identity (Bitner et al., 1990; Kuroshima,
2010). The visible and invisible aspects of the service encounter is highlighted in the
Servuction model (Langeard et al., 1981), which proposes that ‘service experience’ benefits
are results of both onstage and backstage resources which simultaneously produce the
experience for the customer. In Figure 4, both onstage (visible) and backstage (invisible)
components are shown in terms of the service encounter at Cineworld Cinemas.
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Starting with the inanimate environment, Cineworld Cinemas does employ self-service
technologies (SSTs) in its outlets, in the form of digital box offices which they provide alongside
regular manned tills. While these do provide the benefits of shorter queues and less staff
required, they seem to be lacking in the Performance and Fun aspect which contribute to
customers’ attitude towards using SSTs in the Technology Acceptance Model (Davis, 1985;
see Figure 5) as evidenced by Tweets about Cineworld’s SSTs from the past two years1,
83.9% of which were negative (see Appendix 1). Bearing in mind that consumers do tend to
be more vocal about negative experiences than acceptable or good ones (Aksu, 2013;
Marketing Charts, 2013; Grainer et al., 2014), this issue can be considered of moderate
importance as a weakness in its CE, with the majority of complaints being about the on-site
SSTs being out of order, i.e. ‘Performance’ factor (74,2%).
That being said, another key aspect of the inanimate environment of any Cineworld Cinemas
service encounter would be the design and decorations of the outlet itself, which build the
atmospherics of the customers’ overall experience (Hoffman & Turley, 2002). As touched upon
in the previous section regarding shifting over to the Aesthetic realm from the purely
Entertainment realm (see Figure 3), it can be said that Cineworld falls short in this category,
especially when compared to how store environments are used by others within the cinema
chain industry sector. For example, South Korean multiplex chain CGV Cinemas, the world’s
fifth largest cinema business (Noh, 2017), has been known to make use of store decorations
1
Timeframe: 1 January 2018 to 26 September 2019; full dataset available in Appendix 1.
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as a unique selling point, regularly going above and beyond with movie-related photo-worthy
set pieces in their outlets, much to their customers’ delight (Frater, 2019). These themed
displays usually result in customers uploading photos of themselves at the venue, increasing
online word-of-mouth (Yoon & Han, 2012; Erkan, 2016; Li & Xu, 2017). From this perspective,
it is apparent that Cineworld is still behind in terms of themed on-site decorations and
immersion.
Figure 5: Technology Acceptance Model for Cineworld SSTs with percentage of customer comments on
Twitter in 2018-19. Source: Based on Davis (1985)
With SSTs as discussed above, comes a risk of lower satisfaction simply due to a low
customer-task fit, which results in unfavourable results attributed to the ‘incompetent’
participation on the customer’s part, such as not understanding how to use the machine and
declaring it does not work (Dong et al., 2015). With this, customers hold the power to widen
the service performance gap and decrease satisfaction (Zeithaml et al., 2010). Naturally,
satisfaction can also be affected when service failures occur by the fault of the company, and
can be especially linked to how the company tackles these incidents through their service
recovery procedures.
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SERVICE RECOVERY
Figure 6: Example of typical Cineworld Twitter interaction with general, non-inquiry Tweet.
Source: Cineworld, 2019a
MOBILE APPLICATION
A mobile application (app) can be a key tool in increasing retention among customers
(Horovitz, 2013; Jin-Oh, 2014; Alba, 2015); Cineworld however is not exploiting this, choosing
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instead to have the app as a mere gateway onto their website ticket-booking system. This
renders the app impractical to the customer – in fact, 32% of app user reviews have
complained about having to re-enter login credentials each time the app is opened (Appendix
3); some say it is an even bigger hassle than going on the actual website. This illustrates how
the app was merely created to serve a quick booking function, and not much else (e.g. an
environment wherein customers would want to spend their time). All that said, this is a weak
utilisation of the app, which could be optimised to deliver other features to maximize
engagement.
Moreover, the app is currently not pushed as an essential element of the Cineworld
experience. With the growing online complaints regarding in-person booking stemming from
out-of-order SSTs and long queues (see Appendix 1), it is likely that these customers are not
informed about online booking which can mitigate these in-person booking mishaps. Tying
back to Figure 5 previously shown, the on-site SSTs are resulting in heavily negative
comments; this is where off-site SSTs (Reinders et al., 2008) such as the mobile app could
help. The limited emphasis that Cineworld has placed on the app and its features is evidenced
by the confusion from customers – e.g. although Cineworld has introduced in-app e-tickets in
its effort to decrease paper waste, the policies regarding their use is still unclear to customers,
resulting in frequent questions on the subject (Cineworld, 2019). This feature of the mobile
app could play a central role in the customer experience, but is currently not treated as such.
LOYALTY PROGRAM
To guide customers onto the next phase, Commitment, wherein a pledge to continue the
relationship with the brand is evident (Dwyer et al. 1987), Cineworld has employed a
subscription-style loyalty program, the ‘Unlimited Card’, which involves binding customers in
a contract of a minimum of 12 months. This way, customers are committed in that they will opt
to always choose Cineworld for a movie-going experience. This is commendable as by joining
the program, customers are showing willingness to remain committed, which assumes
continued value for both parties to be produced from the relationship (Hardwick & Ford, 1986).
Table 1 below outlines the special added benefits available to the Unlimited Card holder and
reveals how the loyalty program is currently not fulfilling the Hedonic category of benefits for
committed customers. It is important for members to feel the maximum benefits of being a
committed customer, in order for them to be more ready to move onward in the CE cycle and
become customer advocates.
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Table 1: Benefits offered to Cineworld Unlimited Card holders (i.e., Committed customers).
This is followed by the next part of the tactic, which involves using these customer-generated
content (Unlimited Screening film reviews) as content for the brand’s blog in their website.
This adheres to the Service Dominant Logic (SDL) concept, which views customers as co-
creators of value, rather than just passive receivers (Payne et al., 2008). Also, within this
situation Cineworld Cinemas is acting as the facilitators of value co-creation as opposed to
simply producers of standardised value. An example of this is shown in Figure 8, where a
Tweet invites the public to click through to their blog post (titled “Rocketman: discover the
reactions from the Cineworld Unlimited screening”; see Appendix 4). This allowing of co-
creation of value is noteworthy as it enables the company to interact with customers even after
purchase (Akaka et al., 2013), which helps maintain relationships while allowing the company
to build a rapport with them (Vargo & Lusch, 2008).
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Figure 8: Corresponding follow-up featuring blog post containing customer-generated content (available
in Appendix 4). Source: Cineworld, 2019d.
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Given the CE strengths and weaknesses identified in the audit, Table 2 presents several
recommendations for CE enhancement corresponding to each phase of the cycle.
Table 2: Summary of main CE issues and corresponding recommendations of strategies. Source: Author.
As seen in Table 2 above, multiple CE weaknesses can be tackled through one new
engagement strategy, the optimisation of the mobile app. As previously mentioned, the current
usage of the mobile app is truly a missed opportunity; fortunately on the other hand, the app
can be packed with an array of features which shall maximise engagement and simultaneously
cover multiple phases of the CE cycle.
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Firstly, to better utilise it as a tool for retention, the main objective of the app revamp should
be to allow it to serve beyond the function of just online bookings – it should be a space that
hooks customers in, making them spend more time on the app; a key characteristic of apps
considered as entertaining and enjoyable to consumers (Solon, 2016). This can be done by
introducing more enhanced, diverse features such as having a News Feed section containing
Cineworld’s blog posts, providing users’ watch history, and/or allowing users to give personal
ratings for movies watched at Cineworld. Adding such features which elongate time spent on
an app leads to higher affinity for the brand, as users feel more ‘connected’ or even dependant
on the app (Hartmans, 2018), also possibly resulting in actions such as booking more tickets,
or converting non-Unlimited customers to Unlimited members. By embracing the appropriate
user interface, the app is also a great opportunity for Cineworld Cinemas to fulfil the Fun factor
of Technology Acceptance (Davis, 1985), which is currently missing from customers’ attitude
towards SST as evidenced in social media posts in 2018 to 2019 (Appendix 1).
The app can additionally serve as a platform for more seamless service recovery. Minimal
‘referring’ of customers to different personnel is crucial in an effective service recovery
program, as customers expect their issues to be fixed in as few steps as possible (Dixon et
al., 2010), notably without having to re-explain their situation to different staff members or
contacting the company multiple times (McGovern & Moon, 2011). With a service recovery
program incorporated into the app, such as a customer service messaging feature or ‘submit
issue ticket’ option, Cineworld Cinemas may mitigate risks of customers getting even more
dissatisfied as a result of having to go through an extensive service recovery journey.
Moreover, personalised treatment for Committed customers, i.e. Unlimited Card holders,
would help fulfil the Hedonic benefits missing from the current loyalty program. As seen in
Table 1, the description of this type of benefit indicates that it is required for more long-term
commitment, in that it builds and strengthens the relationship with the customer over time
(Mimouni-Chaabane & Volle, 2010; Stathopoulou & Balabanis, 2016). Thus, additional
features or content for these customers on the mobile app – such as a) visual representations
of discount vouchers to remind users of the existing promotions available to them, b)
countdown to ‘Premium Unlimited’ upgrade (users are eligible for upgrade after first year of
Unlimited membership), c) birthday offers, and/or d) ‘official titles’ awarded for reaching certain
milestones of number of films watched – could be incorporated into the app to further solidify
commitment.
Lastly, the app should then be pushed as one of the essential elements of being a Cineworld
customer. This transformation of the app’s image and positioning, from optional to vital, should
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inform and educate customers and potential customers about the ease of online booking via
app and the hassle-free nature of paperless e-tickets, which will lead them to realise that the
Cineworld experience could be much more effortless, facilitated by the app. This will aid in
reducing dissatisfaction while also increasing overall engagement by having customers feel
closer to the brand, as they have a symbol of its presence in their daily life; their phones.
This mobile app optimisation strategy does not only entail the aforementioned advantages,
but is also the most suitable option given Cineworld Cinemas’ current circumstances as other
CE strategies do not address its current weaknesses or situation. For example, creating an
online customer community would hinder the company’s current advantage of having access
to the large number of social media users (e.g. movie fans who thrive on Twitter, dubbed
‘#FilmTwitter’) with which they can collaborate for customer-generated content, wider reach,
and more visible interactions. Utilising existing social media platforms also increases e-WOM
outside of the company’s own customers – an advantage that a closed online customer
community does not offer, making it unsuited for Cineworld Cinemas. Also, as the company
has already employed other CE strategies such as SSTs and a loyalty programme, the
appropriate strategy to really elevate its CE would be the one proposed. In addition, it also
includes another CE strategy – having a comprehensive service recovery program – within it,
rendering it all-encompassing.
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APPENDICES
APPENDIX 1
Technology Type
Acceptance (Pos, Neg, Cineworld
Date Tweet Factor Inquiry) Responded?
cineworld Please help I booked a
show online and printed tickets at the
self service kiosk at cinema, only to
realise that the tickets were for the
wrong day. I still want to watch the
show (which is today) but I’ve lost the
tickets How can I get them re-
04-Jan-18 printed? Ease of use Inquiry Yes
cineworld Cardiff self service. Sort it
out please. (photo of 3 "Out of Order"
06-Jan-18 SSTs) Performance Neg No
So cineworld couldn’t find the
booking on the self service
machines, staff said they couldn’t
print the tickets and there was
nothing they could do...when we
eventually got into the
screening...they double booked our
tickets...#Seriously #Annoyed
09-Jan-18 #WellDone Performance Neg Yes
The film eventually came in just after
11 but no one offered an explanation
or an apology. Really not a good
experience. They seemed short
staffed, the self service machines
weren’t working properly so had to go
to the food counter to get tickets,
03-Feb-18 sadly a very poor experience Performance Neg Yes
cineworld There was no one serving
at any of the tills, unhelpful. The self
service machine didn’t give this
option, it just rejected the Unlimited
14-Feb-18 card. Ease of use Neg Yes
Really bad service cineworld Enfield
yesterday. People queuing for tickets
for ages. Only 3 self-service
machines and not working properly. I
spent 15 min in one machine only to
get an error message at the very
end. Spent 40 min in total and
04-Mar-18 missed the film. App also not working Performance Neg No
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Summary table:
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APPENDIX 2
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APPENDIX 3
Summary table of Cineworld Cinemas App reviews on Google Play for the month of
September 2019 (1 September – 27 September) by theme:
Number of reviews
Theme Negative Positive Grand Total Percentage
Ease of use 1 3 4 6%
Error message 3 0 3 4%
Good overall 0 15 15 21%
Miscellaneous 1 0 1 1%
Navigation 0 3 3 4%
Not working properly 7 1 8 11%
Re-login every time 20 3 23 32%
Suggestion 2 3 5 7%
PayPal error 5 0 5 7%
Cannot open app 5 0 5 7%
Grand Total 44 28 72 100%
Raw dataset:
Star
rating Cineworld
Date /5 Review Type Theme Responded?
Doesn't work on my Samsung Tab S4. Get
error code resultCode":-1,"error":"ERROR
when I try to open Manage My Account. I
have uninstalled the app and reinstalled
but still doesn't work, preferred the older Error
01-Sep-19 1 version! Neg message Yes
Can't pay via PayPal as the pop up window
doesn't allow scrolling so the confirm
button is not accessible. P20 pro Clearing
cache did the trick. Thank you. Further edit
This does not work. Tried again and
01-Sep-19 1 clearing cache did not work this time. Neg PayPal error Yes
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Audit & Strategic Plan
08-Sep-19 5 Disbury Cineworld is the best in all over UK Pos Good overall No
Easy to use and book tickets, never lags or
doesn't work and as a Cineworld Unlimited
holder it works perfectly for my needs. Only
slight issue is that it regularly logs you out
which is a tad annoying but not life Re-login
09-Sep-19 4 changing Pos every time No
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Cannot open
14-Sep-19 1 This app has just stopped working Neg app Yes
Although the app is still logged in, their
website keeps logging you out after a
while. When you want to buy a ticket you
have to logout and login again from the
app, so the buy ticket section doesn't ask Re-login
14-Sep-19 3 you to login over and over. Neg every time No
Absolute garbage, e-tickets display in app
doesn't work most of the time. Booking Not working
15-Sep-19 1 works fine though. Neg properly Yes
Handy app for checking screening times
and booking tickets. The search function
doesn't seem to let me reset my favourite
cinema, but at least it recognises my
nearest. A minor quibble. Otherwise very Not working
15-Sep-19 4 good. Pos properly No
Rubbish app only use it because I have to.
Try to pay with PayPal and no "continue"
15-Sep-19 1 button Neg PayPal error Yes
19-Sep-19 3 Not bad, could be more user friendly Neg Suggestion Yes
29
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Customer Engagement Report:
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Customer Engagement Report:
Audit & Strategic Plan
APPENDIX 4
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