Netflix Customer Segments

Target customers analysis & Positioning Strategy Target customers analysis Netflix is the world's leading internet TV network with over 100 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies of all genres every day. The target customers of Netflix focus on segmentations such as: demographics, behavioral intentions and psychographics. In relation to demographics, Netflix’s target customers includes young adults, teenagers and families with the low-middle income. Moreover, Netflix movies and TV shows also appeal to different ethnic/racial groups with a wide range of foreign and international films. Netflix uses behavioral segmentation to provide content customized to over 100 million subscribers every day on the basis of automation. It is based on Machine Learning to learn about Netflix’s customers through their behavior on the TV streaming app. Then, Netflix stores this information to segment customers into groups based on their action, allowing media service provider provides the customer experience more personalized. For example, Netflix knows what movies or show that customers have watched in the last month. Based on the information, Netflix can determine the genre that customers love and select recommended content for customers to view in the future. In regards to psychographics, Netflix targets three basic groups: - People who are too busy to go out to cinema or DVD shopping. - People who regularly rent movies and love movies. They demand a wide selection of media, ranging from big budget Hollywood films, to lesser known international films. - People who want to get the most value for their money. Value seekers seek fair prices and conveniece, who want to watch movies without incurring advertising. From the beginning, Netflix has attracted people looking for value, they accounted for a large part of the Netflix subcriber segments. Positioning Stragegy Netflix aims to become the first choice and unique for its customers by providing a more personalized, convenient, original content, high selection and yet affordable streaming service than all of competitors . High convenience Netflix FPT Play Galaxy Play Low personalization High personalization VieOn Low experience High price Netflix Low content High content Galaxy Play FPT Play VieOn Low price Netflix gives you legitimate access to a huge database of movies and TV shows as well as the best personalized recommendation algorithm and a seamless service without ad interruptions. With 24/7 streaming service, users can enjoy shows and movies in high-definition quality from anywhere whether they are at home or are traveling. Users get access to thousands of movies and tv shows and Netflix Original movies or shows. The service is supported on a wide range of devices including PCs, TVs, mobile phones and game consoles. Netflix “user profiles” gives leverage for users to personalize their user account and preferences. The User profiles allow the “admin-user” to modify, allow or ever restrict certain users. One of Netflix's differentiating factors is that it releases new and exclusive series as full seasons, not episode by episode, keeping users hooked. Service Product stragegy Netflix's core service is an entertainment platform offers movies and TV shows online . In addition, Netflix also provides additional services such as: streaming DVD / TV programs, accessing on any electronic device with wifi, providing and recommending DVD / TV programs, ... Faciliating supplement including: information, order-taking, billing and payment - Information: Netflix collects customer information from the moment the customer registers account. Customers can easily view referrals and answers to the service manual on Netflix's website. When customers use the service, they are provided with information about the movie they want to watch such as: season number, episode number, actors, provided resolution, duration of the movie, etc. From the data when customers use the service, Netflix recommends and informs customers about movies that match their preferences using an algorithm. Futhermore, Netflix presents detailed step-by-step instructions to guide customers on how to create an account and pay for the service. When customers experience problems with the service, there has a section on the Netflix page to directly contact customer service staff. - Order-taking: When customers come to direct movie service Netflix, they can specify one of three service pack his suit that Netflix offers. Then, customers can use email to create an account on the website of Netflix in any platform with an Internet connection such as: Android, PC, iOS, smart TV and player multimedia online, box decoding television signals. In addition, customers can stop using the service at any time they want - Billing: Most of Netflix's target customers are people who are too busy to go out to watch movies or buy movies. Because of that, Netflix chose to pay online. When customers register for an account, the amount in the card will be deducted monthly on the date of account registration based on the selected service package, then the payment invoice will be confirmed via email and customer's account. row. Customers can view payment history for up to one year through their account, and can print invoices for easy tracking. - Payment: Netflix allows customers to pay by credit/debit card online according to the service package they have chosen. Enhancing Supplement including: Consultation, hospitality, safekeeping and exceptions - Consultation: When creating an account, customers are given information to choose 4 service packages that Netflix brings such as the recurring payment amount, the number of devices that can be used in the account and the resolution corresponding to each service package service. All service packages that Netflix brings have the common feature of being ad-free, watching all content. - Hospitality: Netflix always wants customers to have a comfortable, free and convenient experience while using the service. Therefore, Netflix is always ready to support customers at all times. In addition, based on personalized customer data, Netflix can proactively interact with customers when experiencing service problems. - Safekeeping: Netflix ensures that the information collected from customers is secure and is not owned by a third party. Customers can manage all devices accessing their account. In addition, Netflix also instructs parents to control what children watch with "parental controls on Netflix" at the help homepage. - Exceptions: As soon as customers register, they will be greeted and provided with important information and instructions on when, where and how to contact if they have a problem. In this way, customers can respond immediately if there is any pressing questions or easily moved to email if any questions posed. Netflix's product vision started with a simple goal - to get more profit on DVD. When Netflix was founded, they are a DVD rental company and the client has delivered DVD for them through the postal service. Since then, the company's vision has evolved to be the leaders in the streaming market. 'Switch to digital' has allowed Netflix to expand to the world. Therefore, we have the delivery process : create Account Use a device with internet connection Payment Scheduling Nature of process Service level Customer role Netflix Service Choose Movie Deliver Processes for Supplementary Services The Netflix’s core product delivery process includes conveying the operating schedule to the customers. That includes Netflix’s announcing new upcoming movie schedulesand estimate how long can use the service to brings benefits to themselves. In addition, Netflix's core product delivery process also includes introducing the nature of the process, the service level, and the customer's role in the process to the customer. In fact, Netflix has clarified the above issues, allowing customers to understand what they have to do for them. Surrounded, the core product is a series of complementary services. Netflix's delivery workflow is assigned to each of these elements and does the job of predicting the specific time a customer will need to use that additional service to meet customer satisfaction. Achieve all of the above, Netflix’s product services is a strong focus on original content, personalization, watching experience and interactive storytelling. Netflix's product strategy focuses primarily on original content. Netflix with its power, has more than enough capacity to buy all kinds of copyrighted movies or shows, but they don't gather movies and shows with "normal" content from different sources and hope it works best. They are spending Billions of dollars producing content for top writers, directors and actors so they can do their job well. Today, Netflix is seen as a high-quality entertainment platform similar to what HBO used to be a few years ago when HBO was in the heyday of premium cable networks. Netflix wants its original shows (Netflix Orginal Shows) to be produced on a huge budget, and of course to collect dividends in the future. Completing the user experience is the top priority of Netflix in the past years. The simplest interface available on all platforms such as smartphones, tablets, laptops or TVs is one of the key elements in creating a brand. The best part of Netflix is that you don't have to watch any ads while enjoying the content. It is regularly updated so that it is not outdated. To use its services you can first try it for a period of one month and then you have to (only if you like or want to continue subscribe) monthly and the good thing is you don't have any contract with them. , no cancellation fees, no commitments. You can unsubscribe online at any time. Personalization is one of the pillars of Netflix because it allows each member to have a different view of Netflix's content tailored to their interests and can help broaden their interests over time. It allows Netflix to have not just one product, but hundreds of millions of products: one for each member profile. Each experience is personalized in many ways: recommended videos and their ratings, how videos are organized into rows and pages, and even displayed artwork. Personalization starts on the homepage but also extends across products and beyond, such as deciding what messages to send to our members so they stay informed and engaged. Netflix wants members to spend less time finding something to watch and more time watching something they really love: an old favorite to revisit or a new collection from the catalog - our growing original content. Despite entering the Vietnamese market - where FPT play dominates - Netflix still makes a difference in the products and services it provides. Netflix's homepage also updates Vietnamese and foreign movies with 4K HDR 10 and 4K HDR Dolby Vision picture quality. This is considered the best picture quality standard today, suitable for 4K TVs on the market. Besides, Netflix's Vietnamese movie updates are very fast, almost every week. Foreign movies and TV shows have subtitles in Vietnamese and other languages, making Vietnamese people's language accessibility better than ever. With social distancing rules and restrictions on public life imposed due to the coronavirus pandemic, it is no surprise that customers value streaming services like Netflix now more than ever. In a moment of racial reckoning, Netflix has featured stories about women and minorities, from the "Dear White People" series to the Spike Lee TV series "Da 5 Bloods." In June 2020, it added Black Lives Matter to its content categories. A company-commissioned study of scripted original content found that Netflix has improved representation of women and minorities, making Netflix products more inclusive than studio movies. Netflix also quickly responded to the public's need for information about COVID-19 with the Vox series "Coronavirus, Explained." . Parental control tweaks and Top 10 listings also enhance the streaming service’s utility during lockdown.