Claim your FREE month on Netflix! This is how Netflix gets its lost customers back on board. Reactivating is a way of getting lost customers back on board, getting them into it to make new purchases again. Customers are the main reason your business exists. However, winning new customers is often pricey and time-consuming. Reactivation is the process of conniving past customers to buy from you again. If your business has been around for a bit longer, you are bound to have customers who have bought something in the past but have not done so for a while. You often already have the contact details of these customers so it is an easy way to reach them, and they have already shown interest in what you have to sell them before. why won't you present them with a new offer? To make them an active customer again. One company that does this well is Netflix; they use reactivation in a brilliant way. If you cancel your subscription, you will receive a postcard and/or e-mail with an offer to re-subscribe 3 to 6 months later at a reduced rate. A few months later, they send another if you don't respond or unsubscribe from their marketing list. Netflix is a “subscription” based business, every reactivated customer means an additional monthly stream of income, which greatly enhances the lifetime value of each customer. Using reactivation of existing customers has several advantages: Quicker, simpler and more effective approach. Cheaper than getting a new customer through your marketing/sales funnel. Old customers already trust your company. You already have the customer data so all you have to do is make an attractive offer. Besides, you already have permission to approach these customers which makes it a lot easier. Using a Point-of-Sale (POS), it is easy to keep track of which customer bought what and when, so you should make it a priority to approach this customer again after a certain amount of time. For some companies for example the fashion industry, this might be every season and for your organization maybe after 3 to 6 months. So it does not have to be specifically a subscription-based product or service but by doing this you will be amazed at the results you get. There are still many companies that do not yet use email marketing in the right way, are you doing so and in what way? #Marketing #Sales #Business #Growth #Reactivation #CheapAcqusition
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Lessons Learned: Sales Funnels, Free Trials, and Cost-Plus Pricing This week, I deepened my understanding of marketing strategies, particularly focusing on sales funnels and pricing models. One of the key insights came from a class presentation on Netflix, where I learned how they effectively guide users through their sales funnel—from initial awareness to subscription. Their strategy historically included offering free trials 🎟️, which allowed potential subscribers to experience the service risk-free. While this tactic is no longer in use, it played a crucial role in attracting new users and demonstrating the platform's value. Additionally, we explored cost-plus pricing 💰, a method that sets prices by adding a markup to production costs. This approach can be advantageous for ensuring profitability, but it also highlighted the need for companies like Netflix to remain competitive and responsive to market dynamics. These concepts have shown me how critical it is to create a smooth customer journey and understand pricing strategies to cater to various market segments. A special thanks to @Professor and @TA for their guidance as we navigate these complex topics! 🙏 #MarketingStrategy #SalesFunnel #CostPlusPricing #CustomerExperience #byuhawaii Bret GrowNoah Jacobs
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Netflix is making a shift. Instead of focusing on membership count, the company will focus on engagement metrics. It will now focus on revenue and engagement to assess its performance and stop reporting quarterly membership data from next year. Couple of reasons for this (according to them): ✨ They're no longer in their early days, when membership growth was one of the biggest indicators of their potential. Now they turn a neat profit and cash flow. They've seen 16% growth year-on-year in paid memberships. ✨ Engagement is the best indicator of customer satisfaction. CEO Ted Sarandos said 'Happy members watch more, (and) they stick around longer'. ✨ They're focusing on new revenue streams like Advertising. ✨ They're doubling down on the 'Extra Member' feature which stops members outside of a 'household' to use their password to watch Netflix. Instead, Netflix sends them an email to transfer their profile to a fresh subscription. What do you think of this move? 🚀🎬 What are ways to track engagement?
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The Netflix KPI Tree: Understanding How They Make Money This KPI tree focuses on how Netflix makes money by dissecting two main metrics: subscribers and average revenue per account (ARPA). Subscribers •New Subscribers keep track of how many new people are signing up for Netflix. •#Visitors show how many people visit the Netflix website. •Bounce Rateindicates the percentage of visitors who leave the site after viewing only one page. A high bounce rate suggests the landing page might not be very engaging. •Click-Through Rate (CTR) measures how many visitors are enticed to start the subscription process after visiting the website. •Renewed Subscribers highlight how many existing subscribers are keeping their subscriptions going. •Subscription Plan Upgrade reflects how many subscribers are switching to a more expensive plan, perhaps one with more features like higher video quality or the ability to stream on more devices. •Subscription Plan Downgrade reflects how many subscribers are switching to a less expensive plan or canceling their subscription altogether. •Same Subscription Renewal refers to how many subscribers are simply renewing their current plan without changing. •Average Revenue per Account (ARPA) considers two factors: •Subscription Price is the average amount of money paid by subscribers. •#Months represents the average number of months that subscribers stay active. Why These Metrics Matter? By tracking these metrics, Netflix can get valuable insights into different aspects of their business and make data-driven decisions to improve: •Understanding Visitor Behavior •Visitor metrics such as bounce rate and CTR can help Netflix optimize their website and marketing strategies to convert more visitors into subscribers. A low bounce rate and a high CTR would indicate a successful landing page. Subscription Trends • Analyzing trends in subscription upgrades, downgrades, and renewals allows Netflix to understand customer satisfaction and areas for improvement in their service. An increase in downgrades or cancellations might suggest that the service is not meeting user expectations Revenue Analysis •Understanding Average Revenue Per Account allows Netflix to forecast future financial performance and set realistic business goals. A rising average revenue per account suggests that Netflix is finding ways to increase revenue from existing subscribers. In conclusion, this KPI tree breaks down the different factors that contribute to Netflix’s revenue generation. By closely monitoring these metrics, Netflix can gain valuable insights to optimize their services, improve customer satisfaction, and achieve sustainable growth. #Kpi #Netflix Anubhav Mishra Anurag Mishra CipherSchools
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💥 Netflix Increased Retention by 93% with One Simple Strategy 💥 When Netflix introduced personalized recommendations, they boosted customer retention by a staggering 93%! By leveraging user data to tailor content suggestions, Netflix kept viewers hooked and reduced churn dramatically. Here’s why personalization should be at the heart of your marketing strategy: 1. Deeper Customer Engagement: Netflix’s recommendation engine keeps viewers engaged by offering content they’re likely to love. When customers feel like your brand “gets them,” they stick around longer. 2. Reduced Churn: By delivering the right message or product at the right time, personalization helps prevent customers from drifting to competitors. Netflix’s tailored suggestions gave users a reason to stay, increasing their overall lifetime value. 3. Boosted Loyalty: Personalized experiences create a strong emotional connection with your brand. When customers see content or products curated just for them, they’re more likely to stay loyal and engage regularly. At Wight Capital Media, we specialize in creating personalized marketing strategies that drive engagement and retention. Want to reduce churn and boost loyalty like Netflix? Let’s talk about how personalization can work for your business. #Personalization #CustomerRetention #Netflix #MarketingStrategy #WightCapitalMedia #CustomerEngagement #BusinessGrowth
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Two hours a day on Netflix. That's my guilty pleasure secret. Imagine if those two hours were spent on a company's website, consuming meaningful content like you do on Netflix. Wouldn't that be a game-changer for B2B marketers? ------------------------------- Hubilo has thought of turning your On-Demand webinar into an OTT experience. They call it Media+. Your website visitors can consume your content in the same way they binge-watch shows on Netflix. Now that's an interesting way to think about it. Don't believe me, check it out yourself - https://lnkd.in/gBvQiMvD #ProductLaunch #B2bSaas
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Funnels are a science And Netflix has that science dialed in Ever wonder why they keep winning? It’s all in their funnels You’ve probably been there yourself Hooked in by that 30-day free trial Take a look at Netflix's four-stage sales funnel: 1. Landing page to capture initial interest. 2. An introduction explains the plans. 3. The process initiates the sign-up. 4. Your personal and payment information are collected. Each step is seamless Here’s the kicker: 62% of customers don’t cancel their subscription They keep it going with auto renewal Want to replicate this? Here’s how you can: A) Create an attractive offer B) Clearly explain the pricing C) Make your sign-up require credit card details D) Offer auto-renew as the default option Netflix nails it, you can too Follow the funnel
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Netflix isn't just about binge-watching your favorite shows. They're also a masterclass in customer service. Proactive Communication: Ever noticed how Netflix proactively communicates about upcoming changes, like price increases or new features? This transparency builds trust and minimizes surprises. Personalized Recommendations: Netflix's algorithm learns your viewing habits and suggests shows you might enjoy. This personalized approach shows they understand your preferences and are constantly striving to improve your experience. Seamless Account Management: From easy subscription changes to effortless device switching, Netflix ensures account management is a breeze. Robust Help Center: Their comprehensive help center provides answers to most common questions, minimizing the need for direct support. Social Listening: Netflix actively monitors social media for customer feedback, both positive and negative. This allows them to quickly address concerns and identify areas for improvement. By consistently closing the loop with customers through proactive communication, personalized experiences, and a focus on customer feedback, Netflix has built a loyal and engaged global audience. What are your thoughts on Netflix's customer service approach? Love to hear your approach on closing the loop with customers!! #Netflix #CustomerService #CustomerExperience #CX #CustomerSuccess #CustomerEngagement #LinkedIn
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IMPORTANT: Netflix and Roku decisions leave us whistling in the dark. Netflix and Roku say they will no longer report subscribers/active users and revenue generated by the average subscriber. These data are essential to understanding the health, market power, and trajectory of these businesses. A fundamental measure of service business performance The number of paying subscribers has been a fundamental measure. The post Netflix and Roku decisions leave us whistling in the dark appeared first on nScreenMedia. Knowing a service business’s reach (subscribers or users) and monetization ability (ARPU) is fundamental to understanding its health, market power, and trajectory. Roku and Netflix buck tradition Earlier this year, Netflix announced that it would stop reporting subscribers and average revenue per member (ARM) in 2025. It claims these performance indicators are poor customer satisfaction measures because revenue comes via many different avenues, including ads, games, and premium-tier subscriptions. Instead, it says engagement is a better measure: “We’re focused on revenue and operating margin as our primary financial metrics — and engagement (i.e., time spent) as our best proxy for customer satisfaction.” Last week, in its Q3 shareholder letter, Roku announced it would stop reporting active users and average revenue per unit (ARPU) - NScreen Media (Great Read) Obviously have an opinion on all of this.... Proposed Solution: A Non-Competitive, Agnostic "OmniChannel Streaming Platform" — a unified, à la carte service for TV entertainment, accessible across all devices without the need for multiple apps. Imagine a "Spotify for TV" that consolidates everything in one place, removing the complexity for consumers, just as Spotify did for music. The Benefits: - Tear Down Streaming Walled Gardens – Free content from isolated platforms, reducing redundancies and tech costs for companies. - Boost Profit Margins – By sharing infrastructure, streaming services could potentially reclaim 50% or more in profits. - Higher Revenues, Better Data – Enhanced, centralized data and ad targeting for improved ad rates and precision. 25 year Vision - Originator of Streaming TV 10 years in Development $MM's Invested **corp.freecast.com** #FreeCast #NextGenStreaming #NoMoreAppDiving #EndtheStreamingChaos https://lnkd.in/eujVZyvb
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So what's a funnel and who needs one anyway? Here's one of the most common funnels, that many of us have experienced hands on 👇 Netflix: Netflix’s funnel is designed to convert free trial users into long-term subscribers. What can we learn from this $33B+ per year funnel? Free Trial: Offers a free trial period, reducing the barrier to entry. Personalized Recommendations: Uses sophisticated algorithms to provide personalized viewing recommendations, increasing engagement. Retention Strategies: Implements retention strategies like personalized emails and in-app notifications to keep users engaged and reduce churn. Simple Sign-Up Process: Ensures a seamless sign-up and account setup process, reducing friction and increasing conversion rates. Some of these principles seem so simple, yet businesses lose millions of dollars to their competitors, that have a worse service, just because they don't master these simple steps. Bring your business to the next level with a high-converting sales funnel!
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If Netflix Sold Toothpaste, Here's What They'd Do 👇🏻 Imagine this: Netflix dives into the toothpaste market. Instead of saying, "Our toothpaste cleans teeth," they’d tell you a STORY. "Meet Sarah. She’s got a big date, but her yellowing teeth from too much coffee are killing her confidence. Enter our toothpaste: it’s not just whitening, it’s a game changer for your smile and your life." Crazy, right? But this is exactly what makes their marketing irresistible. Netflix doesn’t sell movies. They sell emotions like thrills, laughter, tears, and connections. So, what’s the lesson here? Don’t sell the product. Sell the transformation, the feeling, the story. Whether you're marketing a software, coffee, or even toothpaste, the key is to show how it fits into your customer’s life and makes it better. How are you weaving stories into your marketing? Let’s talk ideas below! 👇
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