Tuesday, July 26, 2011

How Netflix Alienated Its Customers And Became Less Popular Than Blockbuster In Two Weeks

If you look at the new Netflix price range it's not that unfair - take too long to explain why. However, how it was implemente­d was one of the worst fiascoes I think I've ever seen. This will be taught in colleges as what-never­-to-do. People at Netflix need to be fired.

If you're going to make such a dramatic change like this, you've got to implement it over eight months to year. And you better have a really spot-on migration plan. Really Netflix you send a letter .. a letter? I would have purchased some commercial time and put a video on the Netflix site from the CEO, saying simply -

We are at the mercy of the content providers and they have decided to drain us of our money. Over the next year, we will be forced to make tough choices but our commitment is to our customers. We will do everything we can to stabilize costs and monthly charges. However, because of the current environmen­t there will be changes.

Prepare your customers. Get the thought into their minds. And start pointing that finger of blame, so that when it hits, they're anger is at Fox and Sony and not at you. Also prepare a migration plan. There must be value added stuff you can give customer for choosing to stay. As I'm typing this, I've thought of about a dozen and half of them don't cost Netflix any more money.

Which brings me to my last point, Netflix if you ever find yourself in this situation again, for a few hundred bucks I can save you from ruining your reputation. Really, I've done this stuff before and I can help - I'm here to help and to heal.  Also, because I'm semi-retired, I'm cheap .. really cheap ... like let's talk free three year contract in exchange for saving company cheap. Just saying ..

Read the Article at HuffingtonPost

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