How Netflix Uses Big Data To Create Customer Loyalty
If you’re one of those people who have no idea what Netflix does or why it is so successful, then listen up. I am going to show you how Netflix uses big Data to drive innovation in its business. In particular, I am going to show you how Netflix uses data science to build an intelligent QA team, which in turn drives massive innovation. The Netflix “QA” team alone is responsible for some of the biggest strategic and financial decisions in Netflix’s history. We are going to talk about the Netflix engineering strategy, the strategy Netflix uses to leverage big Data, how Netflix utilizes big Data to improve customer satisfaction, how Netflix leverages big Data to reduce customer loss, how Netflix targets industries with huge potential for growth, how Netflix uses Hadoop to speed up its data collection, how Netflix uses Machine Learning to speed up the search, how Netflix applies its high-speed data network to improve its own capacity, how Netflix obtains its streaming media in a way that is secure, how Netflix obtains data in a way that is free of data leaks, and how Netflix capitalizes on Cloud computing.
In this article, I want to discuss Netflix’s use of big Data and how Netflix leverages big Data to drive innovation, build an intelligent QA team, drive massive customer retention, drive massive traffic, increase profitability, and make television shows that are not very popular even among their own fans. To do this, Netflix loads its entire library of shows into its proprietary cloud-based system called Ice, which is powered by AWS’s platform. Because Ice uses the same platform as AWS, Netflix’s entire data can be stored there, which is faster and more efficient. Also, because it runs on its own cloud, Netflix does not have to pay Amazon for its storage, something that many other companies do.
When Netflix first started out, it was a small company. However, after gaining rapid traction and gaining market share, Netflix decided to make its programming available on mobile devices, especially smart phones. This decision is not only helping the company gain more customers but also driving customer retention. As people continue to purchase smart phones with Netflix apps, more users are likely to buy the product on a regular basis. Because of this, Netflix is able to leverage valuable media company data analytics to understand consumer behavior, including how people use their phones, where they access television when they’re away from home, what times they watch their favorite shows and movies, and even where they look to find the next good movie to watch.
Because Netflix loads its entire library of television shows into its proprietary Ice cloud, it has access to a wealth of valuable user data. But it uses big data analytics to understand how the television shows are used by its subscribers. Netflix takes various factors into consideration, such as the demographics of the users, their average viewing time, what types of content they watch most, what devices they use to access the service, what accessories they use, what connections they have, etc. In turn, the software creates an estimated customer satisfaction score that allows the company to make better marketing and customer contact decisions. This helps Netflix understand what works and what doesn’t for its customers.
Of course, not every internet service provider is as open and honest as Netflix. The typical ISP collects and stores a massive amount of sensitive user data in the hope of finding a way to make money by selling it to advertising companies. While it’s true that the ISP can sell the information to third-party ad companies, it’s also true that the collected personal data is often inaccurate or incomplete. However, because Netflix uses big data analytics to analyze the habits of its subscribers, it’s possible to see where improvements in the services the firm provides would benefit the company and its members.
In addition to helping Netflix understand how to improve its product and service, the program is also helping the media company with its goal of customer retention. Netflix has seen success from the creation of the Netflix video store, which allows customers to rent videos on the web instead of having to visit a television or DVD store. Even with this initial success, Netflix still has about one hundred and fifty million subscribers, so it’s clear that the company wants to continue to grow and gain more members. With customer retention going up through the roof, it’s no wonder that Netflix is using big data analytics to help make the company more successful.
When you think about how Netflix uses Big Data, you may also be surprised to find out that the streaming media company also uses it to create its recommendation tools. The site uses a complex series of factors to recommend the best movies and TV shows to users based on the type of media they choose. For instance, movies that are made primarily for children are likely to appear lower in terms of TV show rating. On the other hand, adult-oriented films may have higher ratings simply because there are more adult viewers.
As the popularity of Netflix continues to grow, so too has its use of big data to help determine what type of content will draw in customers. For Netflix, the goal is clear: it wants to keep its subscriber base as well as retaining those customers. In order to do so, it makes sense to consider the preferences of the customer when making recommendations. Instead of considering overall viewership, Netflix recommends what it believes is the best movie or TV show based on specific criteria. This innovative approach to customer retention is one of the biggest reasons why Netflix is so successful.