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A brown haired man, Alex Belli, standing on grass with nine young men and women jumping up behind him. Photo by Shane Lo

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[Music]

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[Music]

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[Applause]

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welcome to netflix and chill' where

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we're going to take a deep dive into the

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organization that is Netflix and see how

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they stack up in the subscription video

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on-demand service industry but first

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let's meet our two customers Dave and

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Sarah Dave is your typical bachelor is

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21 years old he's an opinion leader any

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social group and he's very image

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conscious meaning that is always keeping

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up to date with the latest TV shows and

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movies Sarah on the other hand is a cool

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month she's 26 years old has a kid aged

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5 and enjoys a family movie night on a

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Friday afternoon both Dave and Sarah

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have been Netflix users for a little

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over a year and they love the service

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but the two use it for very different

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purposes

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Dave watches the latest TV shows and

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movies to stay socially relevant

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whereas Sarah just wants to occupy our

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kid and maybe sit back and watch a nice

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TV show every now and then but there's

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new sharks in the water and they're

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looking for Dave and Sarah so over the

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course of four episodes we're going to

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be analyzing how Netflix can ward off

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these sharks and retain Dave and Sarah

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as loyal customers this is customer

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magnet Netflix was founded in 1997 by

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two software engineers Reed Hastings and

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Mark Rudolph the company originally

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rented DVDs through the internet and in

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2007 moved into the streaming business

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today netflix has over 93 million

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members in over 190 countries netflix

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only arrived on Australian shores in

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2015 and since then has gained 2.8

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million subscribers but with all the

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success there are still issues that

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Netflix has to face for one there is a

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content gap between the Australian

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market and the US market how to

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customers Dave and Sarah feel a little

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bit cheated a second and probably more

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pressing issue in dealing with market

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maturity we've already seen in the US

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market subscription growth slow and

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despite Netflix having one of the lowest

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cancellation rates in the entire

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marketplace of just nine

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customer retention is becoming vital to

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their business model moving forward and

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whilst the Australian marketplace

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continues to foster growth for Netflix

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we can expect a similar slowdown as more

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and more competitors come into the

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marketplace and as the market matures so

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the question then becomes how can we

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preemptively deal with these issues and

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ensure that Netflix maintains and

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improves their market share houston we

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have a problem

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Netflix Australia simply doesn't have as

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many quality titles of the u.s. in fact

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approximately 7,000 less Dave and Sarah

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who aboard have been using that flicks

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live VPN are impressed with the reduced

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ranges brother and likely to stick with

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the US service if they can get access to

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it this is what we do know a majority of

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issues on year-on-year growth was driven

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by increased access via smart phones

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around 82 percent increase compared to

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population Netflix users or subscribers

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an eighty nine percent more likely to be

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18 to 24 year olds like David and Sarah

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and Netflix and children has been

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replaced by family minor in terms of

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relationship marketing Netflix attempts

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retain customers by emailing them new

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shows and TV TV outcomes that are coming

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soon to Netflix their customers have

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already watched and are coming seasons

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on its way or a new title that you might

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be interested in Dave and Sarah want to

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share and browse what their friends

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colleagues family members are watching

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them what series they're up to a most

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viewed alongside a recently added

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segment of the content would let young

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people and family like Dave and Sarah

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get up to date on society's favorites it

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could offer better community advanced

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features IMDB does it brilliantly if you

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like a certain director or actor you can

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simply search for it in the timeline and

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chronological titles he or she are

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involved in searches that accommodate

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actor actress director and year would

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allow for more effective browsing

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imagine being able to toggle assert

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rated by five soloists based on some of

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these demographics to

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distribution rights make it impossible

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for Netflix to provide the same content

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to all countries but they attempt to

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make up in this when their exclusive

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series like house of cards and bloodline

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and movies as well as adding localized

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content for their overseas overseas

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subscribers cable companies and TV

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networks becoming less reliant on

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Netflix so they are focusing on creating

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their own chairs this pushes up their

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costs more of their own original

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documentaries feature films and episodes

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means more dollars into expenditure

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there is a conflict here too a huge part

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of Netflix value comes from other

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companies companies content most most of

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those companies are competing against

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Netflix reviewers which makes them wary

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of selling their content to the

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streaming service Time Warner for

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example so it's going to consider

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extending the time between this show's

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original run and when it shows up on VOD

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services like Netflix so the basis for

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our three suggestions is pre-emptive

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action because we feel that initiating

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customer attention strategies today to

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ensure market success in the future in

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order to effectively retain customers we

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are going to employ after marketing and

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relationship marketing tactics across

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three integrated solutions in terms of

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after marketing we want to improve the

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customer service experience that Netflix

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already provides especially considering

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our two other solutions involves

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rewarding the customer so through a

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virtual assistant we want to ensure that

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all rewards are delivered and any issues

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are resolved within minutes this will

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ensure that the customer is satisfied

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and not left with a sour taste in their

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mouth in order to increase customer

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satisfaction and engagement nepalese

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could add a whole new dimension to in

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a strategy that would add energy

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development Netflix identifies Dave as a

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game arm and Sarah as a social butterfly

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so in order to increase their engagement

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on the side and connection to the

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company

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Netflix could introduce a gaming and

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social element Netflix users will earn

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experience or XP for every show Ruby and

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season that they watch which will

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accumulate two hour-long special rewards

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with the help of integration with

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Facebook Netflix users can connect and

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interact with their friends consequently

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sustain an active contribution some

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features will include the ability to

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share movies with friends like or

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dislike shows create playlists of

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favorite old school movies and see what

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your friends are watching right now the

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Netflix Rewards is designed to recognize

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unloader subscribers dave and sarah to

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show our appreciation we providing them

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with exclusive offerings and discounts

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for key partners of Netflix the purpose

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of this card will be to encourage Dave

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and Sarah to continue using Netflix as

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it will add value to their description

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and increase their receive risk in

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switching providers Netflix Australia

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understands the creative exciting and

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unique services for our satisfied

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existing customer beta is the best way

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to drive customer loyalty and retention

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we assert that our chosen solution is to

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enhance the product experience of

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service users through in platform

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gamification this solution is most

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effective as it employs powerful

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relational marketing foundations and

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coexistence social elements gamification

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is a notional asset for David and Sarah

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is the most powerful solution because it

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increases the switching cost

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economically known as the opportunity

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cost significantly by employing

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relationship marketing with gamified

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elements we add a stickiness to the user

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experience that multiplies other

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attempts of retention by building a

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foundation of Gucci use and creating

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loyalty between the Netflix and the

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and reducing turn drivers for instance

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service transformation using games is

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successfully used by uber for its driver

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contractors by rewarding excellence with

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badges and service ranging for elements

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including conversation and ride quality

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how we would implement gamification is

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through a digital Netflix point system

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David and Sarah earn XP for every show

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loose and season that they watch and

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their points bar Rises on an exponential

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scale due to the viewing length

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obsession and broadness of content users

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can then unlock special rewards have

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faster load times and be hooked to

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levelling up their profile by playing

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the Netflix game Australian leaderboards

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will then rank the leading users in

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various categories and drive a social

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network effect that reduces churn

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increases psychological drivers for

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abundant motivation and make sure users

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retain their accounts and not reach the

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service as we justify our suggestions

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for the client through the lens of

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customer attention this indisputably is

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the best solution to transform Netflix

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Australia's

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[Music]

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my friend

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[Music]

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