Welcome to the third edition of "In Touch". As always, feel free to reply.
Success Story of the Week
Andreas P. Koutis was very surprised when Netflix suggested that he downgrade his ‘Premium' account to a ‘Standard' one, for which he would pay €3 less per month, thus saving him €36 per year.
Now, why did Netflix do that? I don’t have access to the company’s thinking but I suspect that it did so for two simple reasons:
- Customers who do not fully utilise a product, tend to leave after a certain time
- Customers have a much higher chance of changing providers if they are not emotionally connected with them
With competition intensifying from similar services like Amazon Prime Video, Disney Plus, Apple TV and a dozen others, Netflix knows that while it may be harder to differentiate itself through the quality of its content, it can make a difference by providing what is seen as superior service and a better customer experience.
A big part of creating a positive customer experience is making sure you sell only what customers need. Tweet this.
Words of Wisdom
On how using a scientific approach leads to growth:
"Growth is not convoluted or magical. It is very simple: Measure, Test, Experiment. Create a culture of experimentation and celebrate failure as much as you celebrate success."
Chamath Palihapitiya VC and Former VP of Growth at Facebook
Building a customer experience starts with our mindset:
"We see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every important aspect of the customer experience a little bit better."
Jeff Bezos, Founder and CEO of Amazon
A Question to Ponder, dear friend
Netflix sacrifices short-term profits to maintain their customer for life. What can you 'sacrifice' today, to gain in the long-term?
Hit reply and let me know.
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Michael R. Virardi