Netflix has really struggled over the last couple of months. This site has remarked on Netflix initial announcement and on the company’s most recent decrease in customer projections. Most of that struggle has been the result of thoughtless communications. Perhaps in the rush to take evasive actions from a business perspective, they overlooked the customer when they announced their recent price increase. To make matters worse, during the uproar of customer backlash, Netflix’s attitude seemed to be to dig in their heels.
Well, it seems management finally got the message and posted the video below last Sunday night. In the video they apologized and announced a new company Qwikster.
Apparently, Netflix didn’t get their act together on the marketing front as their new company name Qwikster is already being used by someone on Twitter and they have yet to create a Facebook Fan page. Any seasoned marketer could do a couple of chapters on the value of brand equity and ask why Netflix has decided to re-brand the bread & butter side of the business. These rather obvious marketing stumbles aside, at least Netflix management recognized their communications snafus and finally apologized to its customers. In the process, Netflix has highlighted three important marketing lessons.
Three marketing lessons from Netflix:
- While operational decisions may seem to be the best course of action for the company, management always needs to be asking what impact those decisions will have on their customer. If they don’t know, they need to research their customers and find out.
- Every company, no matter how big or small, needs to always put its customers first. When management forgets the customer, they will pay.
- When management has crossed the line with its customers, they need to recognize it and apologize. Immediately. No exceptions.
Here’s the video. Tell me what you think about how Netflix handled the situation in the comments section below.
- Netflix Doubles Down on a Bad Bet (forbes.com)
- With all due respect to Reed Hastings, the Netflix-Qwikster split sucks for customers (blogs.reuters.com)
- Can Qwikster save Netflix stock? (money.cnn.com)