On July 12, 2011, Netflix announced a significant change in their services; a change that caught many of their loyal customers by surprise. Effective September 1, 2011, existing customers who helped build the Netflix brand will now be faced with an interesting decision. Keep their existing plan at a much higher cost or choose a less desirable alternative at a lower cost.
While Netflix enjoyed increased profits and plans for international growth, it’s safe to assume the timing of this change was seriously debated and planned at Netflix. However, announcing this change to its core customer base wasn’t.
COMMUNICATING THE CHANGE
The public generally heard about the change through social media channels. As expected, the posts on Facebook and Twitter were unfavorable, and Netflix didn’t immediately respond. Loyal customers who have been with Netflix for many years didn’t receive any direct communications for the change, bringing more questions than answers.
For a company that has successfully marketed their services to millions, their most loyal customers needed to search for more information after reading negative online posts. Netflix didn’t make it easy or “convenient” for loyal customers to defend the decisions Netflix made.
The company’s brand advocates expected more. They are the ones who introduced Netflix to friends and relatives to join the crowd. To many, it was less about the increased costs and more about communicating the reasons for the change. Because of their passion for the brand, many feel a sense of betrayal.
BRAND LOYALTY
Brand loyalty is an emotional connection to a brand’s promise. It’s a feeling of being part of something that portrays passion in a product or service and willingness to overcome changes. When a consumer feels part of the brand, their loyalty will often prompt them to defend a company’s difficult changes or cost increases.
Brand loyalty is a two-way street. Passionate followers are repeat buyers, evangelize the brand and drive new business. Loyal followers should be respected and treated as part of the brand and not just as a customer. Brand loyalty is a special connection that must never be taken for granted and continually nurtured for growth.
CONCLUSION
In business today, interacting with customers on a deeper level is critical. With the access to social media, today’s word-of-mouth travels at a much faster rate. Reaching out directly to your loyal customers on a personal level will allow them to help you defend difficult changes. Instead, Netflix put a cold statement on their website and posted only the callous, hard facts to their Facebook page.
Three days after Netflix announced the change things didn’t get any better. On Netflix‘s Facebook page, they received over 64,000 “comments” but only 1,160 likes.

Is the Netflix brand strong enough?
Beyond Digital
It’s easy to immerse ourselves in the comforting clarity of ones and zeroes. After all, the outside world is ambiguous. Its infinite gray scale is hard to pin down. But the world isn’t digital. And the insights we need as marketers don’t always come from a computer.
The world sometimes seems digital. Facebook has 3 gazillion users, and everyone and his uncle Tweets. We shop online. We play games online. We learn online. We comment online. We even talk by texting. And all our friends LOL.
That’s an awful lot of screen time. But sometimes we need to just disconnect and experience the world. Go old school. See how people are feeling and reacting beyond the keyboard. read more