This article explores the differences between traditional and digital marketing, the customer journey of Netflix subscribers, and how Netflix uses data analysis to improve company performance and customer experience.
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NETFLIX DIGITAL MARKETING 1
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Table of Contents INTRODUCTION...........................................................................................................................2 MAIN BODY..................................................................................................................................3 1. The differences between traditional and digital marketing.....................................................3 2.Explains customers touch points and the omnichannel nature of the customer journey of Netflix subscribers......................................................................................................................4 3. Explains how Netflix use the analysis of data generated through digital marketing activities. .....................................................................................................................................................5 4. Explain how analysis of data helpsimprove company performance and improve the customer experience....................................................................................................................5 CONCLUSION...............................................................................................................................5 REFERENCES................................................................................................................................7 2
INTRODUCTION Digital marketing consists of all media and online platform to advertise the organisation. Digital marketing use different mediums and helps in the traditional marketing (Chaffey, 2019). Netflix is a streaming service provider founded by Reed Hastings in 1997. The strategy of Netflix is providing innovation and subscription based model. They started as providing DVD s and they moved to online streaming and the model is changed to TVs having Netflix installed. The report includes difference between traditional and digital marketing, customer journey of Netflix, improve company performance, etc. MAIN BODY 1. The differences between traditional and digital marketing. BasesTraditional MarketingDigital Marketing MeaningIt involves advertising activities usingtraditionalmediumslike magazine ads, boards, etc. It involves advertising activities using social media, websites and other online mediums. Target AudienceIt is not easy to reach to many customers and it is costly. It is for attracting local customers (Confos and Davis, 2016). It helps the organisations to reach to customersworldwide.Example, Netflixhasitscustomersinmany countrieswhichhelpedthemin expanding their business. Customer Interaction The customer interaction is less as itisnotaflexiblepromotion strategy. It provides mediums to customers to givetheiropinionaboutthe organisationlikeonsocialmedia, website,reviewsontheapp,etc. Example, Netflix use algorithms which determines what customers want and they are interested in. Marketing Analysis The organisations have to wait for weekstogettheresult.The processinvolvescostandthey Online marketing give results quickly and the organisation do not have to monitor. This is an effective strategy 3
have to monitor the performance of the marketing activity. use by them to advertise the products. Example, Netflix tracks the browsing of customers, when they pause, when they stick for longer, they design the marketing strategy according to their interest. 2.Explains customers touch points and the omnichannel nature of the customer journey of Netflix subscribers. Netflixhasevolvedfromsubscriptionof DVDsto onlinestreamingandnowto personalized model which is based on customer recommendations and interests. Customer touch points of Netflix Original content-Netflix has its “Netflix original” shows and invested in giving better services to customers (Key, 2017). They launches new series in every one and a half week. They started with the original content from 2015. Encourage feedback-The customer's feedbackis used by Netflixto recommend customers. It helps customers to make smarter purchase decisions. Personalize the Experience-Netflix use data as an important factor to give experience to customers. They give them categories like “ Because you have watched Marvel” to give them what they have interest in. The customer journey of Netflix There are 3 channels which Netflix uses to provide customer journey to customers. The customers experiences the quality of service by the organisations and it is included in customer journey. Pre-purchase-The customers have to sign in through gmail, Facebook or manually when they want to have a Netflix account. They have to add their card and pay for the service. Purchase-They have to select the subscription for either a month, 3 months, 6 months or yearly purchase. There are options for selecting the screen also which has a limit of four people. 4
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After purchase-They recommend customers on their interest and the customer service of Netflix is good customers can contact to them. 3. Explains how Netflix use the analysis of data generated through digital marketing activities. Netflix has considered Data as the important factor for the success. They have changed the online behaviour of the organisations and offered 1million for the collective filtering algorithms to rate the movies. They have two type of recommendation system where content basedrecommendationsiswhatcustomerhavewatchedandcollectivefiltering recommendations is based on similar customer profiles. In the viewpoint ofGanis M and Kohirkar A, Netflix provide the personalised system to its customers where they get can watch the shows of any language and culture and the shows are in English to attract customers worldwide. They use many marketing channels to advertise its series like they have used snapchat to provide augmented reality experience to its customers (Social Media Analytics: Techniques and Insights for Extracting Business Value Out of Social Media,2016). 4. Explain how analysis of data helps improve company performance and improve the customer experience. Netflix is successful as they have focussed on providing best services to customers and they have good marketing strategies. They use digital marketing to make the strategies which provides multichannel marketing and helps in increasing their brand name. In the viewpoint of Pearson and Tap A Whitten I and Housden M, Netflix has used email marketing as a good method of satisfying customers as they can add their account with mail and it will be convenient for them. They will get the information on their account and they do not have to add information manually. They used email marketing to promote their series “The Punisher” and they sent GIF which had the logo of the punisher. They have used the technology innovatively and came in blue ocean as the strategy used by them is helping them in achieving profits. They have used its resources to gain the competitive advantage and have satisfies customers by giving good experience. They have focussed on interactive content and provided customers with options so that they feel that they are important for the organisation (Principles of Direct, Database and Digital Marketing, 5th Edition, 2014). 5
CONCLUSION The digital marketing is growing and the organisations are focussing on advertising its products using the online medium as customers are across the globe. The businesses have changed from providing products to providing services to customers and the market is not easy to grab as there are many competitors. The customer is the king and the organisations should focus on providing best services to them. The organisation should balance between traditional and digital marketing and they need to understand the need customers which will help them in achieving profits. 6
REFERENCES Books and Journals Chaffey, D., 2019.Digital marketing. Pearson UK. Confos, N. and Davis, T., 2016. Young consumer-brand relationship building potential using digital marketing.European Journal of Marketing. Key, T.M., 2017. Domains of digital marketing channels in the sharing economy.Journal of Marketing Channels.24(1-2). pp.27-38. Online Social Media Analytics: Techniques and Insights for Extracting Business Value Out of Social Media.2016.[Online].Availablethrough:<https://www.pearson.com/us/higher- education/program/Ganis-Social-Media-Analytics-Techniques-and-Insights-for- Extracting-Business-Value-Out-of-Social-Media/PGM249853.html> Principles of Direct, Database and Digital Marketing, 5th Edition. 2014.[Online]. Available through:<https://www.pearson.com/uk/educators/higher-education-educators/program/ Tapp-Principles-of-Direct-Database-and-Digital-Marketing-5th-Edition/ PGM1046675.html> 7