The Power of Customer Obsession: Lessons from Netflix 🚀
👉 Ever wondered how companies like Netflix have mastered the art of consumer delight? Gibson Biddle, former VP of Product at Netflix, shares his insights on how they transitioned from customer focus to customer obsession, powered by consumer science.
1. "We need Consumer Science to get there." This was the revelation from Netflix's CEO, Reed Hastings, to Gibson Biddle, when he joined the company in 2005. It was a call to develop remarkable consumer insight.
2. From Customer Focus to Obsession: Biddle emphasizes that while customer focus is great, obsession is even better. They shifted from asking, "What do customers say?" to a more empirical "Let’s test it!" approach.
3. Building the Foundation: Their journey into consumer science began with existing quantitative data. They dug deep, analyzed the rates, and found interesting patterns like the effect of price cuts on summer cancellations.
4. Harnessing Qualitative Insights: Focus groups, one-on-one sessions, and usability tests became vital. They needed to understand not just what customers said but how they behaved.
5. Surveys with Purpose: Netflix wasn't quick to embrace surveys. However, demographic surveys, cancel surveys, and sample data helped them get valuable insights. Their Net Promoter Score (NPS) soared to 78.
6. A/B Testing for Wisdom: Biddle highlights the importance of A/B testing to find the right balance between customer delight and margin. They were willing to spend up to twice the lifetime value of a customer for the sake of delight.
7. Consumer Science as the Bedrock: They formed a culture where consumer science was the bedrock. It involved creating a robust set of "e-staff metrics," engaging in high cadence testing, and developing a product strategy guided by consumer insights.
8. Patience and Evolution: Biddle reminds us that becoming a great company takes time. The transformation from focus to obsession took around twenty years at Netflix.
🔗 Dive deeper into the article: https://lnkd.in/djFvJfTe
These are my learnings from the article written by Gibson Biddle and shared by Shravan Tickoo in our PM community group. I will try to share my learnings and insights with all of you regularly.
My Book recommendation - Never Split the Difference
Please leave a reaction if you like my content.
#CustomerObsession #ConsumerScience #Netflix #ProductDevelopment #ABTesting #CX
Product Marketing @ FareHarbor (Booking Holdings Inc.)
1moNice Pragya Jauhari 👏