Letter from the Editor: Segment Like Netflix
Kate Mikado Thursday, May 11, 2017
Share this page with a friend
Dear Funnel Hackers,
Summer blockbusters are just around the corner. And I’m not talking about the box office, but a TV near you! Netflix has some promising new releases in store along with many returning hits. These include fan favorites such as House of Cards, Sense8, Orange is the New Black, and Stranger Things.
Don’t worry if PBS cancels Sesame Street. Netflix is making sure that quality programming is reaching its younger audience. (Good news for you parents.) A brand new series produced by the Jim Henson Company stars Julie Andrews hosting a performing arts class with well-known entertainers. It’s like Inside the Actors Studio for kids.
In this edition of Funnel Magazine, we talk about the Ask Method and all things segmentation. I want to you to segment like Netflix. They are masters of tailoring the programs that you see. Many of the titles I just mentioned you may not have even known are on to Netflix. The home screen shows a different selection of programs based on your active profile. And guess what? When the House of Cards trailer was created, they made more than one version and the cut you saw was based on whether you have a stronger preference for Kevin Spacey or for action films!
And that is just the start. Netflix has this down so well that they can spend $130 million on one season of a show and almost guarantee their return. Why? Because of retention. Not only are they adding millions of new subscribers, but churn is not a concern. In Netflix’s case, quality is equalling quantity. And you can do it too. There is a great TED Talk, "How to use data to make a hit TV show” about using data to take calculated risks. While data alone isn’t enough, it is a vital ingredient needed to create a massive ripple effect.
Here are some of the kinds of data that Netflix collects:
- Your ratings (about four million per day)
- When you pause, rewind, or fast forward
- When you pause and leave content (and if you ever come back)
- Where you watch (zip code)
- What day of the week you watch (Netflix has found people watch TV shows during the week and movies on the weekend)
- What time of day you watch
- The date you watch
- What you are wearing (okay, I made that one up)
Go forth and collect data! Your funnel and bank account will thank you for it. After all, Netflix is now worth over $40 Billion and growing.
Articles By The Author