How Netflix’s Customer Obsession Created a Customer Obsession

Photo credit: Adaptation of photo by re:publica/Gregor Fischer (CC BY-SA 2.0).
Customer focus is great, obsession is even better.
Note the red line, moving up after June — a surprise increase in cancel rate in June of 2005.
The cancel rate in Hawaii drops quickly — why?
The percentage of DVDs delivered the next day, grew to 95% as the total number of hubs grew to 100.
An example of one of the test cells for the Previews Test
The Netflix non-member site (2006)
A reasonable guess at today’s Net Promoter Score for Netflix.
The Netflix site in 2010. Still not simple — more “stuff” communicates more value.
Today’s Netflix non-member site is very simple. It took 15 years, but the brand now communicates substantial value.
Netflix tested thumbs against Stars. Thumbs doubled the number of ratings.
Look closely at the “98% Match” for Casino — there’s no longer a star rating for each movie.
Summary of strengths (green) and weaknesses (red) of each research technique.
From Amazon’s 2016 Annual Letter

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