The latest corporate move from #Netflix not very popular with its #customer base

Netflix has recently increased its prices and attempted to re-structure its services – moves that has hurt its stock and annoyed many customers.

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In the field of customer loyalty and retention, we hear all the time about exemplary companies. Companies that are doing well right now, are keeping their customers happy, and as a result are keeping old clients, signing new, and having the stock prices to show for it.

It only seems balanced, therefore, that we should also study and earn from the other side of the coin – the companies that are currently leaning towards the opposite end of the spectrum.

This summer, Netflix, which had up until that point shown standards for gaining new customers on a daily basis, made the decision to change things up a little – a move that was considered disagreeable to the large majority, if not all, of its users. In order to raise capital for an expansion of services to Britain and Ireland, the company raised prices in some cases up to 60% and attempted to separate its DVD-by-mail rental system from its online streaming business. To the dismay of many, the former went through, however the latter was a failure.

Due to these changes, Netflix saw a larger than expected customer exodus, which brought about a third quarter financial report that shows “a company in crisis”.

This week, Netflix shares dropped 26% to $87.35, bringing about a decrease in much-needed revenue for the company’s planned international expansion.

With forecasts indicating even more customer defection to come, CEO Reed Hastings has acknowledged that “we made mistakes” but seems optimistic about the future of the company. Let’s hope he’s right.

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