Digital Marketing Report: Netflix and Customer Journey

This report provides a comprehensive analysis of Netflix's digital marketing strategies. It begins by differentiating between traditional and digital marketing, highlighting the cost-effectiveness and real-time data analysis capabilities of digital approaches. The report then delves into Netflix's customer touchpoints, emphasizing the importance of customer engagement and retention through personalized content and interactive graphics. It explores the omni-channel nature of Netflix's marketing, focusing on website personalization, emails, and social media engagement to provide a seamless customer experience. Furthermore, the report examines how Netflix uses data processing software to collect and analyze subscriber data, including viewing habits and preferences, to enhance its recommendation systems, personalize thumbnails, and optimize streaming quality. The analysis concludes by illustrating how Netflix leverages data to map the customer journey, improve its performance, and ultimately, enhance customer satisfaction through personalized content and optimized streaming experiences.

Digital Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.Difference between traditional and digital marketing..................................................................3
2. Customers touch points and the Omni channel nature of the customer journey of Netflix
subscribers.......................................................................................................................................4
3. Use of analysis of data generated through digital marketing activities by Netflix......................5
4. Analysis of data enables marketers to map the journey to improve Netflix performance and
improve customer experience..........................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Digital marketing refers to the use of internet and digital platforms to reach customers and
advertising through these channels. Netflix is a subscription based online movie rental service
which was founded in 1997 by Reed Hastings. Its primary business is its subscription-based
streaming service which offers online streaming of a library of films and televisions series
including those produced in-house. In the report further light will be put upon the difference
between traditional and digital marketing, customer touch points and Omni channel nature of
customer journey, use of analysed data etc.
MAIN BODY
1.Difference between traditional and digital marketing
basis Traditional marketing Digital marketing
Target audience Through traditional marketing
local audience can be targeted.
Through digital marketing
Netflix targets the global
audience.
Marketing cost Traditional marketing is
expensive because of printing,
tv and radio ads
It is less costly than traditional
marketing as everything is
done online with the use of
websites
Marketing analysis In this type of marketing the
company has to wait for
weeks and months to get the
results (Todor, 2016).
In this type of marketing
which is done through Netflix,
quick results are obtained
therefore easier to get real
time marketing results.
Communication It involves one-way
communication.
It involves two-way
communication.
Documentation This method of marketing
provides hard copy of the
products/services description
which can be read again.
It provides the description in
the softcopy over the website
and Netflix also provide paper
free documentation.
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Personalised content Traditional marketing does not
provide personalized content.
The content is same for all the
customers
Digital marketing provides
personalized content and no
two users will have identical
homepage.
2. Customers touch points and the Omni channel nature of the customer
journey of Netflix subscribers.
Netflix builds an emotional connect through content as they build a story around the plot
of the show by using interactive graphics by which user involves more in the content.
It keeps the customers engaged through its recommendation system and data led strategy.
Customer engagement and retention determines the success and failure of the subscription based
company like Netflix.
Not ignoring the customer’s feedback is also a touch point of Netflix as it learnt the hard
way that ignoring your customers will see them jump ship. Therefore Netflix asks some broad
open questions like – how did we do? Or tell us about your experience? etc and this leads to
customer sharing what is very important at a point in the customer journey (Lindberg. and
Vermeer, 2019).
Continue the conversation as Netflix leverages streaming information to craft
personalized emails that informs the customers about the new content or season or their favourite
show.
Paying attention to the valuable insights to make their marketing smarter, merchandising
and service decisions. Netflix is getting a lot more success by simply listening to the consumers
demand and applying their feedback.
The Omni channel nature of Netflix is optimizing all the platforms to allow a customer to
interact with them however they want. There is a changing pattern of consumer behaviour as
they are switching from physical media to digital media patterns. Innovative techniques and
adapting to changing expectations of the consumers determines the success rate. As there have
been a rapid change in the customer’s behaviour therefore Netflix has started to adopt a
customer-centric Omni channel marketing strategy which focuses on solving the problem of pain
points of customers (Wagner, Schramm-Klein. and Steinmann, 2020). Omni channel marketing
refers to the cross-channel content approach that aims at giving customers a seamless customer
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experience. They do it by website personalization, emails are also used to deliver incentives to
the subscribers, educate them etc. they also uses social media networks to boost their
engagement and skyrocket their brand awareness. Through these posts Netflix can make its
subscribers familiar with the offers, discounts etc.
3. Use of analysis of data generated through digital marketing activities by
Netflix.
Netflix uses data processing software and also their own open-source solution to collect,
store and process the huge amount of information. They collect data from various points to create
a detailed profile of its subscribers. Netflix collects data about the subscriber’s details like the
time and date a show was watched by the user, how long they take to finish a show or episode
etc.
Netflix even take some screenshot of scenes that user see on a repeat mode. They also
uses recommendation algorithm to suggest movies and different shows based on the user
preference.
Netflix also uses data and analytics to make decision regarding green light original
content based on several touch points which are derives from their user base.
Netflix uses thumbs up and thumbs down system as a type of feedback system which
they have replaced by rating system. This system helped them to customize the homepage of the
user.
Netflix also uses data generated from various social media platforms like twitter,
Facebook and instagram and share memes as an art. They acknowledges funny tweets by the
people and they also retweet it and also they create polls and ask questions to stimulate their
audiences. In this way they get to know their users behaviours and preferences.
4. Analysis of data enables marketers to map the journey to improve Netflix
performance and improve customer experience.
Netflix used the following approaches to improve the customer experience by analysing the data
such as:
Recommendation system – by recording the actions performed by the user like the shows
he watches, what they watch before and after that show, when and where user stops watching
and helps make recommendations shows based on the above information.
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Personalized thumbnails – the thumbnails of different users are different. They elucidate
the thumbnail images and then ranks the images (Sadeh, 2019).
Optimized streaming quality – Netflix also uses past data to predict bandwidth usage and
which show to be streamed in certain areas and caches the content when there is minimal internet
traffic (Harris, Pol. and van der Veen, 2020). It is done so that content is streamed without any
buffering to maximise customer satisfaction.
CONCLUSION
It can be concluded that there are various differences in traditional marketing and digital
marketing. Netflix also focuses on customers touch points and the Omni channel nature of the
customer journey of Netflix subscribers. It also uses the analysis of data generated through
digital marketing activities and lastly analysis of data enables marketers to map this journey to
improve company performance and improve the customer experience.
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REFERENCES
Books and Journals
Harris, P., Pol, H. and van der Veen, G., 2020. 5 Customer Journey. The Routledge Companion
to Strategic Marketing. p.67.
Lindberg, D.F. and Vermeer, T., 2019. The never-ending story: Discovering touch points and
customer experiences along the customer journey.
Todor, R.D., 2016. Blending traditional and digital marketing. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V. 9(1). p.51.
Wagner, G., Schramm-Klein, H. and Steinmann, S., 2020. Online retailing across e-channels and
e-channel touchpoints: Empirical studies of consumer behavior in the multichannel e-
commerce environment. Journal of Business Research. 107. pp.256-270.
Online
Sadeh, G., 2019. How Netflix uses big data to create content and enhance user experience.
[ONLINE] Available through< https://www.clickz.com/how-netflix-uses-big-data-
content/228201/>
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