MoviePass is a service that originally allowed users to see one movie a day in theaters, every day, for a flat monthly fee (originally $9.95). The service saw millions of people sign up in the past year. Unfortunately, the business model is unsustainable for the company, and recently, there have been numerous issues. The CEO has come under fire, prices continue to rise, and movie availability has diminished. It seems that the days are numbered for this service.
The rise and fall of MoviePass is an excellent case study for any business organization to examine. So what can credit unions learn from this interesting company and seemingly negative situation?
At first glance, the MoviePass service looks great. The idea itself is greatly inventive. MoviePass studied the market, addressed the consumers’ concerns, and found a way to be forward-thinking. Credit unions should look into the concerns of their local customer base and think of unique ways to address those concerns and solve those problems. The traditional tactics won’t always work forever, so credit unions have to get creative when it comes to providing solutions to their members’ worries.
Take Advantage of Technology:
MoviePass relied heavily on smartphone integration and mobile technology. This was extremely appealing to Millennials and Gen-Y. We live in a world where there are millions of streaming media options: Netflix, Hulu, Amazon Prime and more. MoviePass leveraged the same internet technology to do what many in the entertainment industry thought was impossible: MoviePass got people into movie theater seats once again, after almost a decade of waning attendance. Credit unions too, can utilize various forms of technology and move into the 21stcentury. An easy to use smartphone application where a member can check their balance, deposit and transfer money, and manage other aspects of their account would be a welcome and convenient addition to any credit union’s offering. Another example of technology credit unions can implement is GrooveCar Direct, an all-in-one auto shopping and financing service that credit unions can customize to their own brand and offer to their members for a hassle free car shopping experience.
Overpromising and Under-delivering:
It doesn’t take a psychic to see the imminent downfall of MoviePass, and it comes right down to the product offering itself. The concept is great and very appealing to customers, however, the business model is obviously doomed to fail. It’s already happening, as evidenced by customers experiencing widespread outages of the service, subscription increases, and surge pricing. As a result, the company has experienced terrible publicity and freefalling stock prices. The lesson for credit unions here is to make sure the institution can deliver on the promises it makes. Creating and attempting to cater to unrealistic expectations will create epic losses. It’s better to do what is actually possible, stay conservative and if you can, over-deliver.
As of right now, MoviePass is a failing company. However, that doesn’t mean that one cannot learn from the things they did, both right and wrong. Taking an innovative approach to solving problems, taking advantage of technology and staying realistic are three things that credit unions can absorb and implement into their marketing plan to increase success.