In-Touch — With Michael Virardi / #3
Welcome to the third edition of “In-Touch”. As always, feel free to reply.
Success Story of the Week
Andreas Panagiotis Koutis was very surprised when Netflix suggested that he downgrade his ‘Premium’ account to a ‘Standard’ one, for which he would pay €3 less per month, thus saving him €36 per year.
Now, why did Netflix do that? I don’t have access to the company’s thinking but I suspect that it did so for two simple reasons:
- Customers who do not fully utilise a product, tend to leave after a certain time
- Customers have a much higher chance of changing providers if they are not emotionally connected with them
With competition intensifying from similar services like Amazon Prime Video, Disney Plus, Apple TV and a dozen others, Netflix knows that while it may be harder to differentiate itself through the quality of its content, it can make a difference by providing what is seen as superior service and a better customer experience.
A big part of creating a positive customer experience is making sure you sell only what customers need. Tweet this.
Words of Wisdom
On how using a scientific approach leads to growth:
“Growth is not convoluted or magical. It is very simple: Measure, Test, Experiment. Create a culture of experimentation and celebrate failure as much as you celebrate success.”
Chamath Palihapitiya VC and Former VP of Growth at Facebook
Building a customer experience starts with our mindset:
“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”
Jeff Bezos, Founder and CEO of Amazon
A Question to Ponder, dear friend
Netflix sacrifices short-term profits to maintain their customer for life. What can you ‘sacrifice’ today, to gain in the long-term?
Hit reply and let me know.
- I am live every Monday sharing knowledge from books and online courses. Subscribe to my You Tube channel to watch new and past videos.
- If you have missed our webinar with Jeffrey Gitomer on “How to take a Sales Leadership Position as the new Economy Emerges”, you can now access the recorded version for only €35 + VAT. As a bonus you will get a printable booklet and a bonus video on how to warm-up cold leads using video. More info here.
Michael R. Virardi