How Digital Technologies Affect Netflix's Consumer Buying Behavior

This report provides a comprehensive analysis of how digital technologies have affected consumer buying behavior, using Netflix as a case study. It begins by comparing traditional and digital marketing tools, focusing on Netflix's evolution from DVD rentals to a streaming service. The report examines the customer touchpoints and the omnichannel nature of the customer journey, highlighting how Netflix interacts with its customers across various platforms. Furthermore, it delves into the importance of data analysis in digital marketing, illustrating how Netflix utilizes data to improve performance, personalize content recommendations, and enhance customer experience. The report concludes by emphasizing the significance of integrating both traditional and digital marketing methods for business success in today's competitive market, underscoring Netflix's effective strategies in adapting to the digital landscape.

How digital technologies have
affected consumer buying
behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Difference between the traditional and digital marketing tools with respect to Netflix........3
Customer touch points and the omnichannel nature of the customer journey.......................4
Analysis of data through digital marketing activities and using it for improving the
performance............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The digital marketing refers to making use of internet for purpose of attracting
consumers. This concept is very broad as it involves various means through which customers are
attracted. In today's, fast moving world, with help of digital marketing, business organizations
can easily track the outcome of the campaigns. It allows the company to compete with their
competitors by exposing to the larger audience which can be done with minimum budget. This
report is about the case study of Netflix. It is an American based media service provider, the
major business of the company is through subscription for the streaming of services which
provides access to movies and television series without any advertisement. This report states
about the traditional and digital transformation of marketing, explaining the customer touch
points and the usefulness of data analysis in improving the performance.
Difference between the traditional and digital marketing tools with respect to Netflix
The marketing mix tools is used to examining the difference in between the traditional
and digital approach of market.
Product: Traditionally, Netflix use to rental DVDs of movies and TV shows which is
only its product and source of revenue. But now, it has its own website providing wide range of
movies and shows option to watch from by a paying a fee (Lobato, 2019). The best part is that
consumers don't have to see commercials. There are mainly 3 plans for accessing the content
which are basic, standard and the premium plan. It also provides software for viewing the
content which is a part of the marketing mix.
Price: The pricing policy used by the Netflix was based on the expected willingness of
the customers for the availing the services. This policy has remained the same in the current
scenario as well. Traditionally, price was pay per rental model which was nearly 50¢US per
rental and also late fees were applicable. But in the digital era, the company attracted its
customer by providing free one month trial after which it charges lower prices which is the form
of subscription as per the plan selected by the consumer. The price set by the Netflix is pocket
friendly.
Place: Traditional, Netflix used to deliver the DVDs directly to the homes of the
consumers and has nearly 44 distribution centres in US which has helped it in easily and quickly
delivering the DVDs to the large group of customers (Barker and Wiatrowski, 2017). Now,
Netflix is providing online streaming services which is available everywhere. The entire business

of Netflix is carried out online which can be easily accessed through Smart phones, TV having
an internet connection. Along with that, the digital availability of services has helped it in
meeting global customers needs and several branches as ell for easy delivery of DVDs.
Promotion: Before getting digital, Netflix used offline approaches of promotion such as
billboard, print media but after entering into the digital world the company made use of social
media platforms for promoting its product or services and the company also used its app by
showcasing the various shows.
People: Traditionally, Netflix had very few employees and has grown in both the aspects
size and scope and has become the major player in the media service industry across the world.
As of now, it is having 7100 workers.
Process: Netflix has carried out all the business functions in order to achieve the desired
outcomes. For example, signing up is an easy process.
Physical evidence: The company's website, app and the physical outlets are the primary
evidence for its existence.
Customer touch points and the omnichannel nature of the customer journey
The customer touch point is the interaction which makes am alteration in the way
customer feels in respect to the products, its services. There are various touch point that the
customers of Netflix have experienced. For example, in its earlier days when the DVDs were
delivered to the customers home, there was a feeling attached to it but thus feeling kept on
changing with the change in the Netflix. The company works on ensuring that it remain in touch
with its customers even though they are no longer the subscriber of it (De Keyser and et.al.,
2020). There is an omnichannel journey of the customer experience which has resulted into
larger audience of Netflix. The various touch points that Netflix touched on are providing
informative mails to its subscribers, providing them with one month free trial for experiencing its
products and services and along with that it provides recommendations based on the watching
patterns of the customers resulting into helping the customer in getting the personalized content
based on their viewing history which has become possible because of digitization (Saura, 2020).
Also, Netflix has always pulls the stops in order to meet with the requirement of its audience.
Through the way of cross channel marketing, Netflix has touched the multiple touch points to
nurture more interest in the products.

Analysis of data through digital marketing activities and using it for improving the performance
The digital marketing performance of the company can be evaluated by looking at the following
indicators:
Average time on a page: It is used for determining the amount of time spend by the user
on a particular web page.
Click Through rate: This metric is used for measuring many users have clicked the
advertisement or link, went to the landing website associated with the same.
Cost per click: It is used for determining the cost in respect to showing it to the
customers on various sites and platforms.
Netflix makes use of the data gathered in response to the digital marketing used by it.
Through this, the company gets to know about the outcomes (Holmlund and et.al., 2020). Netflix
makes use of AI and data analytics which helps in gaining knowledge about the customer
insights in the form of a quantitative data which results into taking informed decisions and
further improvement in the services. Therefore, data analytics enables the marketers for mapping
the customer journey resulting into enhancement in customer experience.
CONCLUSION
It can be inferred from above that, for making a business success it is very important for
the organization's to integrate both traditional and digital method of marketing in order to take
advantage of both and grabbing larger customers. Netflix made use of online and offline both the
approaches for promoting its products and services and along with it, it has analyzed the
omnichannel nature of customers and making use of data analysis in key decision-making. This
has helped Netflix in taking advantage of it and to remain in the market.

REFERENCES
Books and Journals
Barker, C. and Wiatrowski, M. eds., 2017. The age of Netflix: Critical essays on streaming
media, digital delivery and instant access. McFarland.
De Keyser, A., and et.al., 2020. Moving the Customer Experience Field Forward: Introducing
the Touchpoints, Context, Qualities (TCQ) Nomenclature. Journal of Service Research.
p.1094670520928390.
Holmlund, M., and et.al., 2020. Customer experience management in the age of big data
analytics: A strategic framework. Journal of Business Research.
Lobato, R., 2019. Netflix nations: The geography of digital distribution. NYU Press.
Saura, J. R., 2020. Using Data Sciences in Digital Marketing: Framework, methods, and
performance metrics. Journal of Innovation & Knowledge.