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January 11, 2006
Netflix's customer evangelism
How important is customer evangelism to Netflix?
Well, 85% of new subscribers say they signed up for the DVD-rental-via-mail service because they heard about it from an existing subscriber.
And 93% of existing subscribers say they have evangelized the service to their friends, family and colleagues.
As a result, the Netflix subscriber base has grown over 50% in each of the last 20 straight quarters, with more than 4 million subscribers who contribute $500 million in annual revenue. Because it grown a passionate roster of evangelists, Netflix continues to defy the doomsayers who argue that the bigger competitors will eat it alive.
How does Netflix do it?
Read this interview (PDF) with Netflix CMO Leslie Kilgore to find out.
[Thanks Tim!]
Other blogs that reference Netflix's customer evangelism:
» Church of the Customer Blog: Netflix s customer ev from FASTTIE.com - The fastest way to get around the In
church of the customer posts about the netflixs expansion fueled by customer marketing. What a great example of how to grow based on making customers happy. [Read More]
I can say I am a Netflix evangelist. One of the best gift certificates over the past couple of years, I think, has been a two or three month Netflix subscription. I've gotten them for my sister and now for the in-laws. We've had Netflix for a couple months now and love no late fees and the huge selection. With Tivo and Netflix, who watches tv on someone else's schedule? I'm really enjoying the new on-demand entertainment revolution.
Netflix does not understand customer loyalty. The CEO was on NBC last week admitting they hold new and/or hot releases for low frequency subscribers. Those of us who rent a lot have to wait weeks. I've waiting one month for the Constant Gardener. I gave over $400 of gift certificates in Netflix to family this year and they offered me no form of customer loyalty reward. Terrible customer service. Blockbuster will understand.
Hello,
I am a french student in Paris. I found your blog about Netflix on Google.
I am doing a marketing survey for my studies (french business school in marketing) and my current subject is the DVD rental market around the world.
Netflix is the leader in the US with more than 4 millions customers. I have a lot of news paper articles about the Netflix strategy but one thing is missing in my survey : the geographical distribution of the Netflix customer. In fact, I would like to know if most of the customers are located in the main big cities or far from cities where the dvd rental shops are. I would like to show if the penetration rate of Netflix is higher in cities or on the contrary far away from the urban zones.
Do you have information about this ? If you could help me, it would be great.
Thanks in advance
Maxime
Hi Maxime,
Sorry I don't have this information. You might contact the company directly.
