3 reasons why I love Redbox (and you should too)
I recently was talked into by my kids to rent a movie from Redbox. If you don’t have Redbox in your area, they are the big red contraptions outside of Walgreens, CVS and various convenience stores, etc… Theyare big machines that rent videos for $1 per night (new, old, etc…). They also rent blu ray, and Games as well. Anyhow, I stopped and rented one and once I was through the fear of trying something new , I became a fan-I mean a buck a night for a new movie release, not bad.
I couldn’t figure out how they could make money doing it (it took me 5 minutes to work it out and pick a video, I figure that is, they are lucky to get 20 customers an hour- even at 10 hours a day like that- it has to take a long time to just pay for the equipment, let alone the maintenance and upkeep and paying the movie studios for their share)
After becoming hooked, I started stopping on a regular basis and picking up a video (there are around 4 of these Red Box’s within 5 minutes of me, so I can stop on the way to pick up groceries, gas or even ride my bike to pick up one and get some exercise). This was becoming fun!
I decided last weekend that I wanted to stop and pick up a video on my way to pick up my kids so they would have a video to watch on the ride back (about 2 hours). Wouldn’t you know you could reserve a copy of the video you wanted at a nearby Red Box. I have had a few other experiences that I want to share with you and the Three reasons why I LOVE Redbox.
1. Their Marketing. Redbox is a fairly new company and yet, they are already well known, hence they know how to market themselves. I remember getting a free rental coupon on the back of a receipt 2 years ago that I ended up giving away. I like many was fearful of change, but again, once I did it, it worked wonderfully for me. They continue to market and better yet- they really reach out to their current customer base. I receive special offers (last Thursday got a ½ off rental code for Thursday only, I get weekly updates to new movies that are wonderfully timed and never over done). They are getting the word out and frankly, crushing the competition. In my town, the closest Blockbuster has 2 Redbox’s both across the street from it. Blockbuster rents new releases for $3 each- you only have to figure that out once to add up the savings by going across the street. In fact, Blockbuster started doing the same exact model right after Redbox (they did the same with Netflix as well- seems like originality has been lost on the Upper management at Blockbuster)
2. Their Customer Service. I had 2 different times when there was a problem. Once a tried to play a DVD and it did not work (turns out it was not the DVD, but my player). I called them and got them on the phone right away and they apologized and gave me not one, but 2 free rental codes for my trouble without question. Another time, I was returning the DVD right at the cutoff time (9 pm) and the machine had been hit hard by a storm that had just rolled through, so it was not working. I called to let them know and again- a free credit and an apology. They really rocked the customer service
3. Their innovation. They never have late fees at Redbox. Doesn’t mean you won’t pay, but you choose- if you don’t return the DVD on time (9 pm) then you “get to rent it again”. Also, they are well ahead of times with technology, with delivery and customer service. They also are innovative and cutting edge on how they deliver their product. As I mentioned, I cannot figure out how they make any money, but at this rate, Redbox will take over the market for those who will want to rent DVD’s, blue rays and Games as they offer the same value, with convenience and ease of use for a price less than the competition. By embracing technology, they are able to offer the ability to reserve the video you want, so you don’t have to “box hop” from one to the next to find what you are looking for. You can also rent at one Redbox and drop off your video at a Redbox across the country- great for me when I travel and when I will take the kids on road trips.
Incorporating these three offerings into our businesses will surely make us market leaders as well- but remember, it won’t happen overnight, so put pen to paper on how you can plan for this to happen and make sure you are customer centered on your approach- not business owner centered.
Until Next Week, Here’s to your success!