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Tuesday, October 25, 2011

Net result: Netflix should have listened more closely to their consumers

There have been plenty of post-operative comments on last summer’s price increase and fall-out from their recent attempt to split their online and mail-in services.  But now, the impact can be clearly understood:  Netflix reported 800,000 fewer customers this quarter than they had last quarter, according to a story in today’s New York Times.  Click here to read it.

Implications:   Several paragraphs into this story, the Times report indicates that Netflix’ chief executive assumed the service split “had been presented to a focus group,” but also indicated that he “did not recall what those focus groups had said about the plan,” according to the article.

Perhaps that provides a good lesson for anyone in business, when it comes to research:  Don’t just do the focus group or take the survey.  Take it seriously.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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