Netflix has a secret that has been a secret for quite some time. They use big data to make better choices and do better business. In how NetFlix uses big data, it is important to understand why they use so much data in the first place. Without using data, they would not be able to make the decisions that help them achieve success in today’s market.
In so many ways, Netflix relies on their utilization of big data analytics. Of course, this strategy works, as well, because Netflix has become the most valuable media group, passing even Disney. However, by utilizing this form of data analytics, they are able to understand their customer’s needs and desires better than anyone. As such, Netflix can better serve their customers. Additionally, the analytics provided help them gain competitive advantage, as well as help them develop marketing campaigns that actually work.
So, how does Netflix use big data analytics? The company breaks down the data it acquires and analyzes it in minute segments of a single day. Then, it makes recommendations to the management team as to what the improvements or changes might be in order to increase customer satisfaction or boost sales. It may also be suggested that they take a new tact in how they stream movies, for instance.
Netflix utilizes a recommendation system to increase customer retention. The recommendation system starts when a customer logs onto the website and chooses which television show or movie to add to their queue. If the customer likes the show or movie, they are encouraged to stay on the site and continue watching. In doing so, Netflix can continue to analyze their audience and how they interact with their service. Eventually, they learn how certain TV shows or movies are performing among their customer base, which helps the streaming giant make changes to their service to suit the needs of their customer base.
Netflix uses big data analytics to fine tune its website. For example, when the streaming giant launched its subscription model, it analyzed customer data and discovered that only 20% of its subscribers ever left the site. That discovery enabled Netflix to fine tune its payment process to ensure that its customers are happy with the site. Eventually, the payment process became easier and less expensive, resulting in more satisfied customers.
Netflix also uses big data technology to identify profitable keywords. When a user searches for something on the site, a program identifies key phrases and recommends niches based on how frequently they are used. This enables Netflix to tailor its search terms to better serve its target markets. In turn, the recommendation system results in more targeted traffic and more revenue. In a nutshell, this means that Netflix uses big data to improve its customer retention rate and increase revenue.
To learn how NetFlix uses big data in order to better serve its customers, you need to look no further than its massive library of television shows. Of course, this is not the only factor that contributes to Netflix’s success. The site also offers an unlimited variety of movies and TV shows, making it one of the most popular entertainment hubs on the internet. By looking at the growing library, it is easy to see why Netflix would want to learn more about its customer base. As it continues to grow, it will be able to provide its members with a wider range of programming, resulting in even better satisfaction.
The media company is always seeking new ways to serve its customers. As part of this continuous process, Netflix researchers are studying customer behavior to fine tune its recommendations, develop better tools for its customers to navigate the site, and improve its customer retention rate. All of these efforts are working in tandem to help Netflix continue to be a success story. As television shows are studied using big data, companies like Netflix are using the same strategy to make their company even more profitable.