|
Netflix has recognized that they need to go back to the "olden times" of providing people on the phone to talk to customers. The New York Times pays homage to the move.
I agree. With the world of automation, what was considered to be a move into the future has actually exhausted and annoyed customers. A voice that actually answers on the other end of the line rather than the disappointing drone of the automated system telling you what number to push to get to your next series of automated and pre-recorded answers is desired by most humans I know.
The question is, is it a great differentiator to boost NetFlix's sales and customer loyalists?
Netflix is getting some heavy duty competiton these days from Blockbuster who has dusted off their old strategy and is now in the game to win. They had to come in from behind when Netflix swept away with many of their customers, but they have caught up and are pulling ahead. According to the New York Times: By the first quarter this year, after years of outstripping Blockbuster in subscriber growth, Netflix added 480,000 new subscribers while Blockbuster signed up 780,000 new members. And in the second quarter of this year, Netflix, which prides itself on customer loyalty, lost 55,000 customers. Blockbuster added 525,000, bringing its total to 3.6 million..
Can Netflix regain their loyal base by adding back in service and making it easier to do business with them? They're betting that they can. Blockbuster, on the other hand stays in the camp of "no service is the best service," burying their 800 number, and sending people to the FAQ section of the web site.
Let the service wars begin! I'm looking forward to seeing how this plays out!
|
Comments
That doesn't look like The Wall Street Journal to me...
Posted by: mgroves | 08.23.07
Whoops! It was a NYT link... fixed now.
Posted by: Ann Handley | 08.23.07
My bad! I had late-night blogger brain when I referenced WSJ. Thanks for fixing Ann!
Posted by: jeanne bliss | 08.23.07
I'm quite surprised either of the companies have done so well with the availability of on-demand services through cable providers.
If customers are still willing to "rent" a movie then I think a little bit of customer service will go a very long way.
Posted by: Anna Bella Stationery | 08.23.07
When Blockbuster announced their mail rate increases last week, I checked out Netflix to compare plans and pricing. The mail-only option is comparable, but the fact that movies can be exchanged from your local Blockbuster store is a big advantage. We have one two blocks away, so it's convenient.
I do dislike that services were cut back from what we had previously, but that's life. I once tried to speak to a human being at Blockbuster and eventually located their phone number (which I now have on record). The search experience was frustrating as it sends a message - "Don't bother us. Just keep paying."
Posted by: Elaine Fogel | 08.23.07
Hi Anna Bella Stationery -- As a NetFlix and OnDemand cable subscriber, I'm actually NOT surprised that NetFlix and Blockbuster have done so well... the selection on my particular on demand offering isn't always that stellar (in the "free section"). And NetFlix has provided recommendations based upon my ratings, which has turned into some very good movie nights. Plus, there's an allure to receiving the NetFlix envelope in the mail... my husband and I open the envelope excitedly and plan for a movie night, where as OnDemand is always there, and we tend to take it for granted. OR, we find a movie that we like OnDemand only to find that we will be billed an additional $3.99 per movie. I'd rather subscribe to NetFlix and pay $9 to watch three to four movies in a month and make it more special.
I'm also anxious to see how the recent customer service move plays out--stay tuned! :-)
Posted by: KermitFan | 08.23.07
My decision will based on who has more good movies for download!
I go paperless as much as possible and that includes things like packages in the mail. I want to download movies and watch them right away without delay. And a big selection of movies for download not just a few.
Posted by: Neil Anuskiewicz | 08.27.07
BTW, when I say without delay I mean the movie is available immediately to watch. I don't mean I should be able to click a button and the movie starts in one second. :-)
Posted by: Neil Anuskiewicz | 08.27.07