Digital Marketing: Analysis of Netflix and Use of Data

This report analyzes the use of digital marketing by Netflix and how data is utilized to enhance customer experience and influence consumer behavior. It discusses the difference between traditional and digital marketing, the customer touchpoints and omni-channel nature of the customer journey of Netflix subscribers, ways in which Netflix uses data generated through digital marketing activities, and the use of data to map the journey and enhance consumer experience. The report emphasizes the importance of digital media marketing and customer mapping in order to enhance customer satisfaction and retention.

Digital Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Difference between traditional and digital marketing.................................................................3
Customer touchpoints and omni-channel nature of the customer journey of Netflix subscribers
.....................................................................................................................................................3
Ways in which Netflix uses data generated through digital marketing activities.......................4
Use of data to map journey and enhance consumer experience..................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Digital marketing involves the form of marketing services and products in which
electronic devices are involves the following report consists of an analysis of Netflix and ways in
which it have used digital marketing to grow (Confos and Davis, 2016). The report also includes
an analysis of usage of data collected through digital marketing by Netflix.
MAIN BODY
Difference between traditional and digital marketing
Traditional marketing refers to marketing through traditional media that includes
television, magazines, newspapers and so on. Whereas digital marketing consists of social media,
digital media or websites that are used for marketing of a product or service. The basic difference
between these is the medium through which the audience is encountering marketing messages.
When taking Netflix into consideration the transformation of company from traditional
ways of marketing to digital ways is tremendous (Hanlon, 2019). Netflix also used the traditional
ways of advertising at beginning when it was in DVD business. However, as the competitors in
this business raised Netflix started streaming videos. The major changes brought by Netflix
included use of social media, content marketing which successfully helped them to retain
subscribers for a longer period of time.
Customer touchpoints and omni-channel nature of the customer journey of Netflix subscribers
The customer touchpoints of Netflix subscribers have been focused upon by the company
as they moved from retailing of DVD to online streaming of the videos. In order to keep the
customers attached and involved with them Netflix majorly focuses on the content that it has to
offer. Also while changing its major channel Netflix paid attention on the technological
development. They promoted their services in such a way that the subscribers attached the new
video streaming to technological development of Netflix. Major touchpoints of Netflix also
included the ability of company to successfully incorporate changing technologies and changing
needs & requirements of their customers (The importance of digital marketing analytics,2019).
Some of the major customer touch points included making an emotional connect with their
customers which allowed them to retain customers for a longer period of time. They emotionally
connected through the content they stream for their consumers. The company was also using Big
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Data to critically analyse the behaviour of their users so that they can successfully filter their
products according to customers behaviour patterns.
Ways in which Netflix uses data generated through digital marketing activities
The use of data by Netflix that is generated through digital marketing successfully helps
Netflix to make sure that they are successfully targeting their customers. There are a number of
ways in which Netflix uses this data (Chaffey and Smith, 2017). The basic use of this data is
done by Netflix to understand the buying behaviour ans pattern of its users. Another use of this
data is also done to make sure that Netflix keeps on recommending TV shows as well as movies
to its users regularly. Making recommendations from time to time will enable to keep the
subscribers engaged in these activities. Netflix is using various screenshots of the scenes that
their users have reviewed or played more than once in order to create a profile which also takes
help from the searches that are made by subscribers.
Major aim of Netflix in order to keep their subscribers engaged is to provide
personalisation. They aim at providing personalised experience to their subscribers with the help
of the data they are collecting from the digital media. They are providing customers with various
genres and sub-genres which they might come through while browsing. It is necessary for
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Netflix to get to know their consumers well, so that they can build a thriving business from more
and more subscribers.
Major content that is streamed on Netflix is from the recommendation system. There are
a number of other uses of data by Netflix such as they are tracking sleeping patterns of their
users. The time the users are spending streaming videos and the patterns of days in which the
stream videos such as weekends etc. All these information is successfully helping Netflix to
decide all the dates and timing of the launch for their new content. These are also applied on the
launch of trailers, timing of trailers and the stars that will be most featured in the trailers.
Use of data to map journey and enhance consumer experience
Netflix is effectively using the data available from digital media marketing in order to
map the journey of their consumers. It is helping in enhancing experience of customers and along
with it increasing benefits for the organisation. The customer journey map so demonstrated for
Netflix consists of process in which a journey map is created which is visual story of customers
for Netflix and their interaction with the brand.
Some of the major points in customer journey for Netflix are 1997 when the company
was founded by Reed Hashtings. Then in 2007 company launched their online streaming
platform which was a major point in customer journey mapping. The third point was in 2010
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when company started to expand their business internationally. The next stage was introduced in
2013 when original content was developed by Netflix providing Profile services ans now
company have more than 150M users throughout the world.
In order to successfully influence their customers and enhance consumer satisfaction
Netflix have used the data available in order to make sure that they are allowing their customers
to instantly access from home. Providing then smart content recommendation system, charging
only a subscription fee and providing them with unlimited data, availability on all the smart
devices. All these were effectively helping Netflix to increase the consumer satisfaction.
CONCLUSION
The above report helps in understanding the importance of digital media marketing and
ways in which customers are successfully influenced using it. Netflix is a huge organisation
streaming videos online for consumers. The consumers for Netflix are increasing due to the
strategies used by company to enhance their customer experience using data available from
digital media. Companies require to essentially focus on customer mapping in order to enhance
their journey and retain them for a longer period of time.
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REFERENCES
Books and Journals
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Confos, N. and Davis, T., 2016. Young consumer-brand relationship building potential using
digital marketing. European Journal of Marketing.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Online
The importance of digital marketing analytics(2019)
[Online] Available through <https://www.kdrrecruitment.com/the-importance-of-digital-
marketing-analytics/>
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