Wednesday, November 12, 2014
Research, research, research
We know it's important to research our potential audience and customers, but Netflix has taken that research to a whole new level. Just consider the research that came with the company's production of its own original shows. Netflix researched everything from viewing habits to actor popularity to the types of shows and movies people like in order to create the perfect recipe for success.
Conversely, Netflix has also shown us the importance of research with its hiccup a few years ago when it split the charges for its streaming and DVD options. While the company did manage to bounce back, people were very upset with the price hike and were so outraged at the company's attempt to rename part of its brand that Netflix had to drop the idea. Knowing where your customers' sensitivities lie can help you avoid such a debacle. A company that was not as popular as Netflix might have struggled to weather the storm.
Solve people's problems they didn't even know they have
Netflix has become popular precisely because the company has mastered this skill. Before Netflix came on the scene, people didn't really have much of a choice besides cable. Netflix came and offered people a solution for watching movies and TV shows. The company was also able to predict customer trends and started producing and advertising a streaming service before people even realized there might be something better than waiting two days for DVDs to arrive in the mail. Netflix stayed one step ahead of its customers, which gave the company a strong reputation as a superior provider.
Encourage word-of-mouth advertising
Word-of-mouth advertising is some of the most valuable in any industry. When people receive a recommendation from someone they trust, such as a friend or a family member, they automatically give the advertisement more credence. Encouraging people to tell their friends and family, and making it easy for them to do so, has been fantastic advertising for Netflix. Just about everyone has seen those little '1 month free for friends and family' cards Netflix gives out to subscribers. These cards make it simple and productive for current subscribers to encourage signups among their social circles. Once these new signups experience the convenience of Netflix firsthand, they're more likely to stay with the company long-term.
Netflix has built success by anticipating customer needs, understanding what drives customer demand, and capitalizing on industry opportunity. As you settle into your chair tonight for a marathon of your favorite show, keep these marketing techniques in mind and see what lessons you can apply to your own business. If you're ready to begin a new marketing campaign, contact us today for assistance.
While few would list report writing as a "highlight" of their academic career, those hours spent compiling reports were not spent in vain. Sure, report writing helped many of us learn how to plan out a project and conduct research, but they also taught us a bit about the topics we were researching, too. By forcing us to look in depth at the various subjects we were studying and analyze them from a number of different angles, we gained a far better comprehension of the subject matter than we might have if we had just read the textbook.
It's important to remember those benefits, especially when it comes to marketing your company.
How marketing reports are like your old school reports
Like their high school and college counterparts, marketing reports can also feel frustrating. People often view such assignments as time wasters that are only done because they're demanded by the c-level executives upstairs. In reality, however, marketing reports can offer considerable insight and help everyone better understand the company's marketing strategies and how they can be improved.
When you sit down and really invest the time needed to complete a thorough marketing report, you'll walk away with a much better understanding of your company's current marketing practices, how well each campaign is performing, and how it all relates to your company's bottom line. Without a well-researched report, it can be easy to gloss over weak spots and overlook opportunities for continued growth.
What a marketing report should exam
There are an infinite number of metrics a marketing report can examine, but some have more appeal and a greater ability to shed light on the success of your marketing strategy. Here are a couple to consider.
How much does it cost the company, on average, to obtain each new customer?
Take a look at your total cost in sales and marketing over a given period of time. Then see how many customers you obtained in that same period. Divide the cost by the number of customers, and you'll have your average cost of obtaining a single customer.
Determine what percentage of that cost is related directly to marketing, so you can see which campaigns worked and which ones didn't. Such insights can prove valuable in helping the marketing team improve their regular performance and illustrate the success of any changes made.
How many leads were generated directly from marketing?
Your marketing team should also be able to report how many successful leads were generated specifically from marketing efforts. Begin by calculating the percentage of customers who began as marketing leads. Then look at how many leads started elsewhere (e.g., in sales), but were influenced by the marketing department before making a purchase.
For added benefit, try to break down specifically where these marketing leads are coming from. Are prospects downloading certain ebooks? Do they subscribe to your blog? Did they take an online webinar?
Marketing reports offer valuable information about the state of your company's marketing programs and what can be improved. Although they might be viewed with the same frustration as the school reports of your youth, they can also offer incredible insight and education. So don't overlook the opportunity reports provide to regularly analyze the success of your marketing efforts.