What would a company be without their customers? After all, maintaining a steady and healthy relationship with customers is the lifeblood of any successful company. Customer retention is the driving force behind any successful business. In other words, it is the deciding factor of where or how a company can grow. Also, it will likely shape the future of any business. Furthermore, Netflix is a great example of how effective customer retention strategies can mean the difference between a massive success and a fleeting daydream.
Fun fact: Netflix is nearly over twenty-four years old. It has maintained some of the same customers that it has had from the very beginning. Needless to say, this is a pretty impressive feat in this field. Consider how large the online streaming market has become. For example, look at contenders like Hulu, Amazon Prime, and the more recent additions to the gauntlet, Disney+ and HBOMax. It goes without saying that they’re clearly doing something right when it comes to customer retention. This raises a question though. What customer retention strategies are they employing to maintain such a strong presence—despite the competition?
1. A Tailored Viewing Experience
Somehow, Netflix always has a knack for showing viewers the perfect thing to watch. In other words, they show a selection of the most appealing things to scroll through. Netflix’s customer retention can be attested in large part to their algorithmic recommendations. The massive streaming service employs mathematical predictions in their software to recommend things that a viewer will like after they’ve been watching over time. This method has also been one of the most integral customer retention strategies of the modern day. Predictive content has been a game changer for customer retention. Netflix’s use is one of the best early implementations, outside of YouTube and Google.
2. Never Forget…
Netflix has a great way of keeping their customers in the know at all times by never letting them forget what’s going on. A fantastic customer retention strategy has always been to do some of the thinking for your audience. Being a company as massive as they are, the use of marketing automation is effectively employed to stay on top of recommendations and reminders. Much of the customer retention happens through the constant stream of pop-ups. This is done through email or on a mobile device that consistently alerts customers about things they may want to watch. Something new that came out that would suit their interests could be right around the corner.
3. Variety Is the Spice of Life
Netflix’s massive selection is a great aspect of their customer retention strategy. So, there is quite literally always something for everyone to get invested in. Moreover, they offer a selection that spans the globe. This selection changes depending on what part of the world someone is watching in. Additionally, there’s another aspect of Netflix’s customer retention strategy that is more subtle. This is their ability to adapt to an ever-changing media market. By studying KPIs, or key performance indicators, Netflix can update the show roster depending on where successes are showing. Furthermore, these indicators allow them to see what is being watched and what is being forgotten. As a result, KPIs let Netflix make changes or even green-light new shows that fit these analytics.
4. Diversifying Their Presence
Social media has become a key aspect of all of our lives. Therefore, maintaining a solid social media presence is necessary for customer retention—even for giants like Netflix. Businesses should engage with customers via Facebook, Instagram, Twitter, YouTube, Snapchat, Tumblr, Pinterest, and even Linkedin. So, maintaining a presence in each of these areas will guarantee customer retention across a massive expanse of the populace.
Hoping It Sticks
Web Content Development is here to make sure that businesses have all of the skills necessary for impeccable customer retention. From offering customer retention strategies to directly employing marketing techniques for companies, they can help create long-lasting and devoted customers to match their long-lasting and devoted track record.
