Analyzing Netflix's Digital Marketing Strategy & Customer Journey

This report analyzes Netflix's digital marketing strategies, emphasizing the differences between traditional and digital marketing, customer touchpoints, and the omnichannel nature of the customer journey. It examines how Netflix uses data analysis from digital marketing activities to understand customer preferences, personalize experiences, and improve company performance. The report highlights Netflix's successful transition from DVD rentals to digital video delivery, driven by data-driven insights and a focus on customer satisfaction. It concludes that digital marketing is crucial for business growth and that Netflix's success exemplifies the effective use of data analysis to enhance customer experience.

DIGITAL MARKETING

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
REPORT..........................................................................................................................................1
Difference between traditional and digital marketing.................................................................1
Customer touch points and omnichannel nature of customer journey of the Netflix subscribers.
.....................................................................................................................................................1
How Netflix use the analysis of data generated through digital marketing activities.................2
How analysis of data enables marketers to map this journey to improve company performance
and improve the customer experience.........................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUTION
At a higher level digital marketing means advertisements delivered through the digital
channels like websites, search engines, email, social media and the mobile apps. By making use
of these online media, digital marketing is method through which companies endorse the goods,
brands and services. The consumers rely over the digital means for researching the products.
Report is based on how the digital marketing is influencing buying behaviour using the case of
Netflix. It is subscription based online rental service that was founded in the year 1997. The
report outlines differences between digital and traditional marketing, customer touch points and
analysis of the data generated through the digital marketing activities.
REPORT
Difference between traditional and digital marketing
Digital marketing refers to use of digital channels like social media and websites as the tools
for communication marketing. Traditional marketing on other includes use of traditional
channels like printed media and billboards. Before development of internet traditional marketing
was only marketing method.
Main difference between traditional and digital marketing is medium using which the
audience encounters marketing message. Traditional marketing make use of traditional media
like newspapers and magazines. Digital marketing uses social media or website.
Using the traditional marketing the promoters have to wait for weeks or months to see
improvement in business where in digital marketing results could be seen in days. As in the case
of Netflix it could be seen that subscribers have grown enormously from 22 million in 2011 to
150 million in 2019 which is hard to see using traditional approach (Chaffey and Smith, 2017).
Digital marketing is automated process which reduces manual process to great extent for
consumers and marketers while traditional method is full of manual work and process. Both the
methods are effective however the trend has grown significantly high towards digital marketing.
Customer touch points and omnichannel nature of customer journey of the Netflix subscribers.
Touchpoint could be described as the interaction between with the customers and prospects.
Touchpoints define customer experience. Customer touchpoints are point of customer contact.
Netflix has worked hard for creating the customer touch points. It has developed the cutting edge
algorithms for serving the custom artwork for thumbnails for enticing the viewers to watch the
content. It used the internet platform and various sites for advertising the content. It also
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provided rating and reviews and visiting the website. It attracted the customer attention using ads
in all the major websites and other online mode and focused over providing about the wants of
customer.
The omnichannel journey of Netflix users has been immense. In 2016, 35% of internet
traffic was covered by Netflix user with around 75 million of subscribers. The customers have
grown significantly high from DVDs to personalised experience (De Pelsmacker, Van Tilburg
and Holthof, 2018). Netflix disrupted the entertainment industry and offered blueprint to delight
customers. Customers are highly satisfied with the efforts over personalisation and for removing
friction for customers. It is customer centric and aims at delivering remembering experience with
each interaction with the customers. It always keeps the customer engaged with various touch
points and interactions and has provided them with smooth journey with least friction.
How Netflix use the analysis of data generated through digital marketing activities.
From its inception Netflix had implemented various disruptive business practices and the
innovative approaches for the customer experience. It has subscriber base of around 115 million
that has came with humongous data that could be analysed for improving the experience of users.
Predictions for content type, to garner increased viewership to recommend contents to the user, it
collects data from almost all the sources. Since from DVD distributor, it had given great
importance to collection of user data and for creating recommendation system.
It is considered as the biggest example of using the data analysis in right direction to spell
business success. It used the data generated from various sources to analyse the wants and needs
of customer. It analysed the tastes and preferences of different customers and worked for
providing them personalised experiences with no friction (Saura, Palos-Sánchez and Cerdá
Suárez, 2017). The analysis was also used for analysing the areas for establishing customer touch
points. The data analytic is used for improving the customer experience and enhancing the
company performance. On the basis of data gathered it develops recommendations for the users
of their interest areas that enable it to retain the customers and increase the number of subscribers
without losing the old ones.
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How analysis of data enables marketers to map this journey to improve company performance
and improve the customer experience.
Data analysis is a powerful tool used by the Netflix for raising the subscriptions and
improving the company performance. Netflix also used Big Data analytics for optimising quality
as well as stability of the video streams and to assess the customer entertainment preferences
with viewing pattern. It allows the Netflix to offer shows that customers like watching.
Collective efforts have been pivotal to help streaming giant to make successful transition from
DVD renting to delivering digital video.
Analysis of data helps the marketers to know the customers their demands, likes and
preferences. It enables to develop the marketing plans and products that satisfy their needs in
best manner (O’Donnell and Huntington, 2020). Before developing or providing something new
it is essential for the marketers to identify the requirements so that it could keep in mind what
changes and adoption will improve the performance. Areas where consumers are facing issues
are to be fixed foremost and asking for recommendations how it could be improved or made
better.
CONCLUSION
It could be concluded from the above report that digital marketing is growing immensely
and helping organisations to grow their business. Along with traditional modes companies are
required to be in contact with customers using digital marketing. After with invent of internet
digital means of marketing are exploring very fast and connecting the customers around the
world. The success of Netflix is the biggest example of digital marketing and use of data analysis
for improving customer experience.
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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.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management. 72.
pp.47-55.
Saura, J.R., Palos-Sánchez, P. and Cerdá Suárez, L.M., 2017. Understanding the digital
marketing environment with KPIs and web analytics. Future Internet. 9(4). p.76.
O’Donnell, R.H. and Huntington, H.E., 2020. Stranger things have happened: Digital marketing
lessons from the eggo–netflix collaboration. SAGE Publications: SAGE Business Cases
Originals.
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