Xtravision marketing

Writing by aj@lecraic on Friday, 27 of June , 2008 at 10:33 am

ttmxtravision

I’ve been a member of my local Xtravision branch since 1993. Recently it has struck me that the company spends a lot on advertising. They have repositioned themselves from being a rental operation to being “Ireland’s leading entertainment company”. This isn’t a new development. It’s been ongoing for a few years now. They are adapting to the changing landscape. The penetration of Sky in Ireland and online movie rental operations has brought this change about.

And yet, through all of this change, they have not engaged with me, a customer of 15 years. I think they are missing out on something. Let me explain.

Up to about a year ago I would have been a regular renter of titles - maybe one or two over the course of week. Since then, my rental pattern has been very sporadic. Rental is probably not their focus right now, but I’m not going through the door as often as I did.

That’s one less set of eyeballs that isn’t seeing what other offers they have going on. All the press and TV advertising hasn’t got me back in to the Xtravision habit.

So why has their computer system not picked up on the fact that my rental pattern has changed? I wouldn’t mind if someone from the local branch gave me a call to say “Hey, we noticed you’ve not been here in a while - there’s a credit applied to your account for any rental in the next 10 days”. Anyone in business should know that your most valuable asset is your customer database. So why is a big company like Xtravision so piss poor at utilising it?

How about encouraging me to get alerts via text of when new titles are available to rent in the local store. Maybe a loyalty card - rent x number of titles in a month and get some sort of discount for a dvd purchase.

I just don’t understand why they spend so much on blanket advertising campaigns when an investment in a better computer system might pay off more in the long run.

So Xtravision, whatcha gonna do to get me back to you?

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Category: the biz

21 Comments

Comment by Darragh

Made Friday, 27 of June , 2008 at 10:45 am

good point AJ. I’m not sure if they see themselves though as a customer retention company. A lot would depend on the quality of staff in the store and also the computer system they use. Quite simply, maybe they don’t know.

If they did what you suggest though they’d do really well, despite the damage online rentals, high prices and downloading movies has done to them.

Comment by John B

Made Friday, 27 of June , 2008 at 10:46 am

I’d mind if they called me!
“Hey John we notice you haven’t been through the door in 6 months”.

“Oh Yeah - well you tried to charge me 12 quid because I discovered the extras from a dvd hadn’t been dropped back and even though you didn’t notice, I brought it back a few days later”

“I told you to bend over and I’d stick the extras up your ass. And that you wouldn’t see the 12 euro or me ever again. Can you not remember? Maybe you should stick that in your database”

Comment by John B

Made Friday, 27 of June , 2008 at 10:49 am

Actually that was Chart Busters…but…same difference.

Comment by Debbie

Made Friday, 27 of June , 2008 at 10:55 am

Similar scenario with me too - long time user (that sounds very druggie, lol) but tailing off of late. I wouldn’t like phonecalls, but why not emails with latest releases and offers etc? They did it when I was in the US (BlockBuster) and that was useful (though I still used the small indie places more often).

I was about to say that their internet site sucked, but I just checked, and it’s improved enormously since the last time I looked. So that’s a plus.

Comment by aj@lecraic

Made Friday, 27 of June , 2008 at 11:05 am

@Darragh - that is true so I’m emailing them a link to the post and maybe they will get a few ideas from it

@John - big grin on my face right now! you tell ‘em :-)

@Debbie - hadn’t visited their site in a while and it is better alright. actually noticed they have a sign up to newsletter service now but it’s not immediately obvious where to do it.

Comment by emordino

Made Friday, 27 of June , 2008 at 11:16 am

Advertising is fire and forget, that’s a big part of its appeal. Whereas committing to an ongoing effort at making customers happy would eat into valuable thumb-up-arse time.

Comment by aj@lecraic

Made Friday, 27 of June , 2008 at 11:58 am

Yeah, we’re bombarded with so much that it takes something special to stand out now. Maybe they like their thumbs up their arses ?

Comment by B'dum B'dum

Made Friday, 27 of June , 2008 at 2:37 pm

did you always have to pay for the Xtravision magazine of ads? I used to always take one.

Comment by Darren

Made Friday, 27 of June , 2008 at 4:02 pm

Damn good point - a missed opportunity by XtraVision.

Comment by Dan Sullivan

Made Friday, 27 of June , 2008 at 4:05 pm

I think Xtravision and others have gone in the Sky movies direction of hitting the median demographic and ignoring the more specialised aspect. They focus on having the shelves/schedules filled with the new releases and to hell with the idea of making any effort to retain people once they think to look beyond the most current blockbuster. Too much work. I must admit I was spoiled by a video store in Carlow back in ‘89 which was spread over two storeys and had laminated all their covers so you could flick through their stock. Comprehensive was the word. Any effort at data mining is likely to get customers thinking and looking for new things and new things cost money!

Comment by Mark B

Made Friday, 27 of June , 2008 at 4:07 pm

What’s the bet their IT people know this already, but the management are too thick to recognise and implement such a scheme?

Comment by Southiesham

Made Friday, 27 of June , 2008 at 5:20 pm

Just a notion, but maybe they don’t call because for every one of us who has stopped using, there are twenty 12-20 year olds with money to burn more than willing to pick up the slack?

A quick goggle shows their profits to be in the area of 13 million a year or so. I don’t think they’re worried about a few of us not rushing in to rent the most recent installment of Bridget Jones Eating Cake.

Comment by paul

Made Friday, 27 of June , 2008 at 6:58 pm

My guess is that they have just not invested properly in CRM. How many smallish retail or restaurants in Ireland do? I guess movie rental in general is hitting hard times, as movie downloads are becoming more mainstream. All that aside, I like their affiliation with Barretstown, and think they allow staff to volunteer there (without losing holidays).

Comment by aj@lecraic

Made Friday, 27 of June , 2008 at 8:54 pm

Do they charge now for them B’dum B’dum, I’ve never paid for one anyway.

@Darren - although I’m with Moviestar as well, it is good to browse the shelves isn’t it? that’s the missed opportunity for them as well - the fact that some people like to browse shelves.

Good point Dan(data mining). The branch in Wicklow is fairly well stocked with older titles and foreign language. Probably not as good as the Carlow place you mentioned though.

@Mark B - the Peter Principle rules again!

@Southiesham - that’s a distinct possibility but still, if it was my business I’d be looking at every avenue and would work on customer retention more.

@Paul - I’m constantly amazed at how few actually do invest in CRM. I have a small CRM package I got for under $200 and is perfect for my needs. More small retailers should do it rather than waste money on ads in the local papers.

Comment by Darren

Made Saturday, 28 of June , 2008 at 12:28 am

I do the same. I can’t pass our XtraVision without popping in for a browse. Surely they could be doing far more to capitalise on their unique position in the Irish marketplace.

Comment by Darragh

Made Saturday, 28 of June , 2008 at 10:45 am

In one of my many past lives I managed an Xtra-vision store. The computer system at the time (2002) was quite basic - perhaps they’ve upgraded it since.

But what you also have to take into account in this debate is the staff, who are low paid and as such don’t want too many pressures added on their already busy schedule of cleaning, managing returns, stock taking, cash reconciliation and so on.

For this to effectively work, not only would the computer system have to (be able to) analyse the data (properly) but people would have to go through same, work out which customers were still valid and didn’t owe back money and then contact them.

And with the contacting comes a whole range of data protection, subscriber lists and permission issues - how often do they get contacted, how, with what message - that I think Xtra-vision either couldn’t or shouldn’t get involved with, because it would add an extra layer to their business that they may not be able to handle effectively, and doing it badly is worse than not doing it at all.

Xtra-vision are massively successful and profitable. They’ve got the highest brand recognition in the country after Coca-Cola, they’ve built a business based on solid principles and they know the market. As Southiesam said above, there’s more than enough teenagers willing to pick up the slack.

Comment by B'dum B'dum

Made Saturday, 28 of June , 2008 at 2:53 pm

I got in shite for taking one a while back, they could’ve just been angry that I spent so long browsing and bought nothing.
Ever browse the rental section of a store when you’re not a member and have no intention of becoming one?

and all that Darragh said up there looks pretty good and smart and all, so imagine I typed it up too.

Comment by aj@lecraic

Made Sunday, 29 of June , 2008 at 9:37 pm

Good points Darragh but there’s no problem that can’t be overcome if a business wants to. Having a retail business myself, I know that better than most.

I also know the staff aren’t paid particularly well, and there are lots of things to be done in the store. An incentive programme to re-activate dormant customers would bring a new dimension to the job and the possibility of a bonus and reduce staff turnover too.

Data protection, subscriber lists etc. technology can handle all of that.

Being massively successful and profitable doesn’t mean Xtravision or any company should rest on its laurels. that just doesn’t make business sense.

Comment by Darragh

Made Monday, 30 of June , 2008 at 6:30 am

@AJ - absolutely correct sir, apologies. My response was more so to do with why they couldn’t introduce this feature right away, not that they couldn’t work on their software and staff and bring it in. It is much needed, but would involve work.

It’s just time vs resource vs possible outcome.

Fair points though on yours. Be good to see.

Comment by Southiesham

Made Monday, 30 of June , 2008 at 7:16 pm

I just reckon they know exactly what they’re doing. The vast bulk of their merchandise is aimed at the 12-30 year olds (video games, walt disney flicks etc etc etc). When was the last time a video was released that the over-30’s were interested in? And the time before that? They know we are only going to drop a few euros once in a blue moon; they have a finite supply of movies, and chances are the older generation have seen them all.

So why waste money on us? Stick with the youngsters who haven’t seen all the movies, played all the games and at whom 99% of all movies are aimed at in the first place!

Comment by aj@lecraic

Made Monday, 30 of June , 2008 at 8:50 pm

I think you’ve probably hit the nail on the head there Southiesham with their current strategy. Still think they could do more for the rest of us though!

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