“It is not the strongest or the most intelligent who will survive but those who can best manage change.” – Charles Darwin
Do you remember when Netflix planned to release a subsidiary website known as Qwikster back in late 2011? I try to forget. Essentially, Qwikster was going to be a whole new website dedicated to DVDs-by-mail. In turn, Netflix was solely going to consist of streaming movies and TV shows. In order to use both services, the customer was going to need to use two separate accounts, two different credit card statements, and two different websites. The entire strategy was unsound because it created unnecessary competition and would ultimately cost the consumer more time and money.
Netflix adapted. Within a month of announcing Qwikster, the CEO cancelled any further plans to separate DVDs-by-mail and online streaming due to public outrage. Qwikster was no more. In my opinion, this was the event that flipped Netflix’s marketing campaign on it’s heels.
Netflix now knows that they need to market a service that is accessible to and desired by as many potential customers as possible. Thanks to Big Data, this is possible. Netflix has utilized Big Data and marketing techniques to efficiently tweak their service and marketing campaign as needed.
– More and more people are starting to stream movies online? Let’s purchase the rights to stream more movies!
– More customers will join if we offer original content that can be streamed? Let’s make our own TV shows and stream them (House of Cards, Orange is the New Black, etc.)!
– A bunch of people use Youtube to watch videos? Let’s put the trailers for our TV shows on Youtube!
The list goes on and on…
This technique has paid off. Netflix has beaten quarterly earnings forecasts seven quarters in a row, and more people continue to subscribe to Netflix.
Netflix knows how to adapt, and they know how to do it quickly and efficiently. They know that they have to cater to their consumers if they wish to remain a successful business. They know how to utilize tools such as Big Data in order to improve their business. They know how to market.