Remember having to go to a DVD store to rent out a few movies for movie night? Well, Netflix has introduced a different way for people to watch movies and series without having to visit a physical location to rent movies. Netflix takes its customer relationship management seriously as it determines the future success of the company. In this article, we are going to see What CRM does Netflix use?
The world is evolving and so are people and technologies. With every evolution that takes place, corresponding technologies need to be created to make life efficient. Just think about how we are exposed to digital streaming services like Netflix that allow consumers to stream movies and shows at their convenience. Stick around to read about what CRM Netflix uses that ensures that they have a growing number of customers making use of their services.
What is a CRM?
In simple terms, CRM is customer relationship management. Every company starts somewhere, and they have to acquire customers and maintain the relationships they have with these customers to enhance customer satisfaction. Businesses also use a system of strategies, technologies, software, and techniques that assist them in generating, acquiring, and maintaining customers. From the initial interaction with a customer, the CRM software can track all the interactions and decisions that customers make. Customer relationship management systems are vital when it comes to the company’s overall sales and marketing.
What is the purpose of CRM systems?
Nobody wants to run a company that will not generate sales and profits. As mentioned before, a CRM system is meant to help a business build and maintain its customer relationships. Every move that a potential customer or existing customer makes should be tracked. From the initial interest shown to finally closing the deal. The manual way of tracking can be very time-consuming, so businesses now rely on CRM systems to track everything. The system simply collects some information on the customer and will be able to generate preferences and maintain the relationship with the customer using automated emails as a follow-up.
Netflix’s Customer Relationship Management systems
Netflix is a growing company with many customers. We have to agree that Netflix is just a convenient entertainment service. How would movie night turn out if you can’t find the right movies for that specific night? You get to stream your favorite movies, shows, and series at your own time with a subscription. So how does Netflix get potential customers, generate leads, and maintain the satisfaction of their existing customers? The answer to that question is CRM technology or software.
Netflix makes use of its in-house built software or technology that can help with its CRM. Information on which systems they use might not be disclosed to the public but Netflix’s most indirect marketing strategy that increases their sales is ‘word of mouth’. They can rely on word of mouth to bring them, new customers, then their CRM systems can help them build and maintain the relationship they have with the potential customer.
What marketing strategies does Netflix use?
There are many other companies in the market that provide the same services that Netflix provides. If a Netflix customer is not satisfied with the services they are receiving, then they can easily take their money and spend it on the next company. Below are some of the marketing strategies that Netflix uses:
Free trial
Nobody wants to get themselves caught up in an unworthy subscription therefore Netflix gives its potential customers a 30-day free trial. This gives them enough time to browse through what they have to offer, find shows they like, and decide if they want to become one of their subscribers. This takes away the risk and makes the potential customer feel comfortable with spending their money on this service. A few days before the free trial ends, Netflix will send a reminder informing the potential customer that the trial is almost over, and they will then have to make a decision. This is a great CRM strategy that Netflix uses to secure its customers.
A vast number of the different content available
Netflix has a ton of shows that one can engage with. All you have to do is find your favorite show and Netflix will do the rest. Keep watching a range of different movies and shows whilst Netflix generates your ‘recommendations list’ consisting of shows that you might be interested in. Browse through several movies and find something that sparks your light. You will always have something to watch unless you get overwhelmed by the number of movies and shows there are on Netflix. This makes sure that you are always interested in Netflix and don’t wish to end your subscription.
Although Netflix does not disclose what Customer Relationship Management systems they use, we can see a few strategies and techniques that they make use of to keep their customers satisfied. The strategies help them with acquiring new customers, managing a great relationship with the new customers, and helping keep existing customers loyal to them.
Frequently Asked Questions
- Do CRMs invade customer privacy?
CRMs hold quite a huge number of customer data such as age, location, watch history, and preference however they will not invade your privacy.
- How does Netflix communicate with its customers?
Netflix communicates with its customers through content. If people share what they would like to see on Netflix their systems can pick up and provide those shows.
- What are the benefits of CRMS?
Some of the benefit6s of Customer Relationship Management systems include enhanced communication, unique messages to customers, and they can assist with securing customers.
