Tuning into Netflix: ROI, KPIs, and Social Listening
What started as a mailing service that brought your favorite movies right to your door, has become one of the biggest streaming services in the digital age. All you need is an internet connection and a credit card. As of 2020, Netflix holds more than 203 million yearly subscribers; blowing both Hulu and Disney Plus out of the water. In this article, we’re going to dive into Return on Investment (ROI), Key Performance Indicators (KPI), and Social Listening.
In their Mission Statement, Netflix states its purpose is to entertain the world. “Whatever your taste, no matter where you live, we give you access to best-in-class TV shows, movies and documentaries,” (About Us, netflix.com). So if Netflix is already so well-known in the streaming world, what is it that could possibly improve and how do we measure it?
Netflix is a big success; that is proven by its millions of monthly subscribers. But what can we improve on to add more to that subscriber count? The objective here is to make Netflix desirable to those who are hesitant to subscribe. One objective I think that would improve this is for Netflix to offer special discounts to new subscribers. For some, the price of Netflix is not worth the monthly charge. A great way to offer this would be for Netflix to offer a promotion code for a certain amount of time that can be redeemed when they subscribe. If Netflix were to offer a discounted rate for new subscribers, it would entice them to stay loyal to Netflix in the future.
SMART goals, which are known as, specific, measurable, attainable, relevant, and time-based, are goals that are set in order to measure ROI. Let’s break down each goal individually.
Specific
This answers who, what, where (if a location is applicable), and why. In the example of increasing subscribers, the ‘who’ includes who is needed to make this possible and the target audience. We know that the target audience is non-subscribers and Netflix is the ‘who’ to achieve this goal. The ‘what’ is what is trying to be accomplished, in detail. Here we are trying to increase subscribers by sharing a promotion code that is available for a limited time. Netflix would create posts on their social media accounts about this limited offer and when this offer is going to be available and for how long. Let’s say the event will be available from March 1st — 3rd and Netflix is offering $5 off per month for new subscribers. Netflix will advertise consistently before and during this event to share a promotion code that can be used when the new subscriber is checking out and purchasing their subscription. The ‘why’ of the specific goal is the most important. Goals are set in order to accomplish or improve something. If there is no reason why, there is no motivation or clear idea to improve. The ‘why’ in this example is to increase subscribers with the hopes of creating more loyal subscribers in the future.
Measurable
This goal is defined by what metrics are being used to determine these goals (or promotion in this case) were a success. “This makes a goal more tangible because it provides a way to measure progress,” (Eby, 2019). In our Netflix example, we are using the number of new subscribers to measure the success of the promotion. Netflix is also a mobile-device-friendly application. Netflix can also use the number of application downloads and in-app purchases for subscriptions to determine the success.
Attainable
This focuses on how important the goal is and how to achieve it. For Netflix, the goal to increase subscribers is very attainable. Netflix is popular enough that the promotion would be successful across social media without the need for outsourcing tools and skills.
Relevance
Is the end goal relevant to the company and its broader business plans? Does it align with the company objectives? When it comes down to it, Netflix is a business and businesses are always looking to increase their products. Our objective of increasing monthly subscribers will in turn increase profits.
Time-Based
For a SMART goal to succeed, the timing and planning need to be realistic and achievable. “Providing a target date for deliverables is imperative,” (Eby, 2019). By making our Netflix promotion span over a few days, results will be quick and Netflix can determine if the campaign was a success.
Social KPI’s to Track
Since this campaign would be covered over social media, using social KPIs like reach, engagement, conversions, and customer support are the best ways to track Key Performance Indicators. Social media is all about these social KPIs; they can make or break a company’s campaign. It’s important for Netflix to engage with their followers and answer questions regarding issues, feedback, and questions. By focusing on their social media posts for this campaign, Netflix can be very successful and increase their subscribers.
Resources
Stories move us.they make us feel more emotion, see new perspectives, and bring us closer to each other. (n.d.). Retrieved March 12, 2021, from https://about.netflix.com/en
Eby, K. (2019, January 9). The essential guide to writing SMART GOALS. Retrieved March 13, 2021, from https://www.smartsheet.com/blog/essential-guide-writing-smart-goals
