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By John Boitnott

Effective digital marketing has more to do with creative strategies focused on the individual customer than it does with big budgets and advanced technology.

In five years, the share of households with a Netflix subscription has increased 92 percent. Today the majority of households in the United States subscribe to Netflix, and that number is slated to rise this year.

Why is this happening? The product is designed so well that you and I have been sucked into shows, only to emerge from our homes days later. The creative team is skilled at creating programs that receive both popular and critical praise.

But Netflix doesn’t just produce good shows, it also knows how to use advanced digital marketing techniques to acquire new customers and retain existing ones. Let’s talk about a few of the digital marketing principles that make Netflix so successful. Follow them and you may just see similar results.

Personalized content is the best kind.

What sets Netflix apart from other streaming services? Amazon, HBO and Vudu all have access to thousands of television shows and movies. They offer intuitive user interfaces, and they are available across devices. Yet Netflix is uniquely situated to dominate the streaming video revolution thanks to the company’s obsessive approach to content personalization.

My Netflix homepage looks entirely different from yours. This is thanks to the power of proprietary algorithms that predict what kind of content you’ll enjoy, and hide the rest. On Amazon Prime Video, I can’t even find the last thing I viewed there easily. Netflix has them beat here.

You might be thinking that content personalization is only available to companies like Netflix that have the capital to employ hundreds of the world’s smartest engineers. But entrepreneurs can also tap into content personalization in a few different ways.

Tools like Optimizely and Adobe Experience Cloud let you to personalize content based on a variety of data points like the country associated with an IP address, or whether or not a visitor is already a lead in a CRM. Based on this information, marketers can choose to display different website experiences in order to better serve the interests of a particular visitor.

As an alternative to third-party software platforms, marketers can always “fake” personalization with a little elbow grease. By building behavior based email workflows, marketers can ask email recipients to click various links depending on their interest. Once their interest is registered, the rest of the email workflow can be based on the interests articulated by recipients.

Takeaway:

Remember, personalization isn’t about relying on advanced algorithms. Instead, it’s about identifying and providing the kind of experience the prospect, customer or visitor is most interested in having.

Multi-channel campaigns are key to getting your message out.

Netflix is available on seemingly every device. From computers to smart televisions, users can access Netflix wherever and whenever they want. Marketers at Netflix take a similar approach to promotion.

To hype season two of the company’s hit show Stranger Things, Netflix teamed up with Snapchat to release an augmented reality experience. At the same time, Netflix used Instagram, Twitter, Facebook and email marketing to promote the upcoming season.

Takeaway:

Multi-channel marketing isn’t about spending big bucks on advertising stunts. It’s about creating marketing campaigns that meet members of the target audience wherever they “live.” In the case of Stranger Things viewers, Netflix knew that their target audience would spend hours on social platforms, so they developed a strategy accordingly.

Simple is powerful in a complex world.

We live in complicated and noisy times. As a result, the average person has an attention span of just eight seconds, according to the New York Times. Netflix chooses to keep things simple when creating a mission statement or designing a user interface.

The company’s investor relations page says, “We are a relief from the complexity and frustration that embody most MVPD relationships with their customers. We strive to be extremely straightforward.”

It’s no surprise then that for non-customers, the Netflix homepage is so simple it’s sparse. It takes just two scrolls to reach the bottom of the page, and features two messages: “watch anywhere” and “cancel anytime.”

Takeaway:

Use simplicity as a differentiating factor, and make it easy for members of the target audience to understand what you do and how you can help them. Ensure that this approach translates to marketing material, product experience and customer service.

Email marketing is still a key component to customer onboarding.

Despite claims to the contrary, email marketing is not dead. In fact, it’s used by Netflix as a key component of customer onboarding and nurturing.

New Netflix customers receive a series of emails that make content recommendations and encourage new users to explore the platform. This is a way of driving platform adoption, which improves customer retention in the long run.

Long time customers also receive periodic emails from Netflix. To promote the release of a new show called The Punisher, Netflix sent customers a marketing email that appeared to be spam at first glance. But once opened, the email played a GIF that slowly redacted information until a button at the bottom appeared, encouraging subscribers to watch the new show.

Takeaway:

Email marketing is not dead; unimaginative email marketing is. Netflix marketers invest hours in building creative email marketing campaigns designed to engage and delight recipients. You don’t need sophisticated tech to engage people in your database. You just need to understand the target audience, and apply some imagination to email marketing.

Netflix is successful thanks to a focus on understanding target audiences. Once that happens, marketers launch creative cross-platform campaigns that deliver simple and clear value propositions.

Remember that success in digital marketing isn’t a result of big budgets and advanced technology. It comes from creative and customer-centric strategies.

Feature Image Credit: Jonathan Nackstrand | Getty Images 

By John Boitnott

Journalist, Digital Media Consultant and Investor

Sourced from Entrepreneur

Today’s big phishing scam: Netflix accounts. In the past 24 hours, customers have been receiving emails purporting to be from Netflix soliciting their account information.

WGN reports the scam emails inform users their accounts have been disabled, and it recommends they update their payment details.

“We’re having some trouble with your current billing information,” the emails read. “We’ll try again, but in the meantime you may want to update your payment details.”

The email directs them to a “Login Page” where they are asked to enter account information.

The email is signed by “Aleksandar.” No Netflix executive with that name exists.

If you get an email like this, don’t click the link. And report the email to Netflix immediately.

Netflix, in its Help Center, directly states that it will never send this type of email.

“Netflix will never ask for payment information to be sent to us over email,” their statement reads.

“If you’re unsure about a link in an email, you can always hover your cursor over the link to see where it directs.”

If you have already clicked a sketchy link like this, Netflix recommends immediately changing your Netflix password, and informing your bank that your account may have been compromised.

WATCH: Netflix’s ‘Atypical’ attempts to tackle what dating could be like for an autistic teen

Feature Image: AFP/Getty Images

Sourced from Mashable UK

Sourced from AdExchanger.

Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Jonathan Cohen, principal brand analyst at Amobee.

Last Friday, Netflix founder Reed Hastings celebrated Netflix getting its 100 millionth subscriber, a major milestone for a company that has spent the past 20 years thriving on science and analytics.

Netflix has arguably been the biggest disruptor of the decade to the TV and film industries, and it’s impossible to describe its success story without recognizing the central role big data has played every step of the way.

Its business model depends on using analytics to understand its audience better than its competitors. For brand marketers, for whom understanding audience behavior is equally essential, Netflix is a great case study on how to leverage big data correctly.

I see three ways in which Netflix has successfully used actionable analytics that can be relevant for brands.

Outreach Needs To Be Personalized

Even before Netflix was a video streaming service, its recommendation engine played a critical role on its website. Back when its existed solely as a DVD rental-by-mail-business, Netflix didn’t have enough inventory to ship the biggest new releases to all its customers overnight, so it created an algorithm that suggested movies its customer would be interested in, based on their previous picks, and didn’t emphasize new releases.

The strategy worked, and in 2006 new releases represented [PDF] less than 30% of Netflix’s total rentals, compared to new releases making up 70% of total rentals at standard video stores.

Since it made the shift to online streaming, a more sophisticated recommendation engine has been successfully surfacing content that’s personally relevant and engages users to the point that they spend on average 17.8 minutes browsing before selecting a program to watch, compared to 9.1 minutes of browsing for cable users. That keeps Netflix’s monthly churn rate in the low single digits, extending the lifetime value of customers and saving an estimated $1 billion-plus per year in retention efforts.

Minimizing Data Loss Is A Strategic Advantage

“Big data helps us gauge potential audience size better than others,” explained Ted Sarandos, Netflix’s chief content officer, in a 2016 interview.

That’s true, but it’s also important to recognize why it’s able to take advantage of analytics to an extent that traditional broadcast and cable networks can’t. Netflix has exact data at the individual user level as a content platform and creator in a walled-off ecosystem.

Netflix paid $100 million in advance for 26 episodes of “House of Cards” because it knew people who watched the British version also loved Kevin Spacey and David Fincher movies, an insight that’s only possible in a walled-off ecosystem, not from estimated ratings.

Additionally, when it came time to promote “House of Cards,” Netflix had enough audience data to serve different variations of its ad to different audience personas. For instance, “Thelma & Louise” fans saw a version focusing on the female characters, while people who viewed Kevin Spacey movies would see him as the focus.

Relating that to brand marketers, the more unified their digital spend (while minimizing the challenges of working with multiple vendors and metrics), the less data loss there will be, allowing for more educated and effective campaign optimization efforts.

Adapt The 13-Millisecond Rule

Netflix understood it needed to capture a member’s attention within 90 seconds or they’d leave the site. And acknowledging recent research that found the human brain can process an image in as quickly as 13 milliseconds, Netflix began A/B testing the box art thumbnail image for select films, allowing users to pick between six options. Video viewing increased by 20%-30% for the winning images, with photos showing facial expressions that reflected the tone of the film or TV show tending to do well.

For marketers, the difference between success and failure is often about getting a lot of very small decisions right, and usually even if it appears a campaign is meeting expectations, further optimization is possible.

In the current media landscape where the internet has largely leveled the playing field, knowledge is power, and Netflix has excelled because of its success at leveraging data into actionable insights. Brand marketers that emulate key Netflix strategies like personalizing audience outreach, minimizing data loss and leaning heavily on A/B testing can likewise benefit from big data.

The answers about audiences are out there for brands. It’s just a matter of learning how to better collect, listen and respond to the feedback customers are already sharing.

Follow Amobee (@Amobee) and AdExchanger (@adexchanger) on Twitter.

Sourced from AdExchanger.