Case Study 1: Redbox Redbox is about engaging new users quickly and how to use apps for a brick and mortar company. Redbox Automated Retail, LLC specializes in DVD, Blu-ray, and video game rentals via automated retail kiosks. Parent company, Outerwall, also owns Coinstar coin counting machines across the country. With more than 42,000 Redbox kiosks in 34,000 locations across the US, they have rented more than 4 billion videos and games. Their app gives users inside information about inventory availability, making it easy for them to decide what to rent while they are on the move. Browsing movies and games, finding locations nearby and reserving the titles are just a few of the activities they can perform inside the app, downloaded 30 million times so far, with an 83% opt in rate of acceptance for push notifications. Within an hour of downloading the Redbox app, new users get a coupon for a free movie rental. That promotion has been more successful than any others in the companys history. Here are the results: Redboxs first welcome message boosted the redemption rate by 300 percent. The first push notification drove more than 16 times more online traffic than its busiest day ever, says Redbox, about their mobile marketing promotion with Urban Airship. Redbox believes that users who engage on mobile are more valuable than those that engage offline, since there is already more personally identifiable information through the mobile channel. The goals of this were to educate and onboard new users, cross-promote Redbox content across channels, and lastly, to give users easy access to rental kiosks and content availability and in each of these instances, the campaign achieved their objectives. Redboxs mobile experience used geo-location and cross promoting across different channels, including social media, e-mail, and review sites. Questions

1. Describe how Redbox used digital marketing to deliver a non-digital product and how another company could do the same in a different industry.

2. What other channels did Redbox use besides messaging channels?

3. How do you determine the value of your customers? In what way does Redbox determine the value of their customers? In what ways are they similar and/or different?