August 16, 2007
Netflix Takes Real People Approach to Customer Service
Netflix is taking some competitive heat from Blockbuster and the movie rental service has begun to see erosion in its subscriber base after an impressive period of growth that began with the company’s founding in 1998. To help it regain its momentum, Netflix has ended its email customer service and instead gone to a 24-hour phone service that will enable subscribers to talk with a real person.
“My guess is they’re trying to nip that in the bud,” Michael Pachter, an analyst with Wedbush Morgan Securities, told the San Francisco Chronicle. “They can talk someone out of quitting. You can’t do that online via e-mail. … It’s a very smart move.”
Netflix lost about one percent of its subscribers in the latest quarter going from 6.797 million customers to 6.742 million.
Netflix spokesperson Steve Swasey said the move to the phone service was planned for some time.
“We continue to improve what is already the best customer experience on the Internet,” he said.
Netflix rival Blockbuster offers both online and telephone support for its customers.
Discussion Question: Will speaking with a real person improve subscribers’ perception of Netflix’ customer service? Do you expect other companies to follow the Netflix lead or will more rely on email, in some cases, to the exclusion of phone service?
BrainTrust
Recent Discussions
Discussion Questions
Poll
The other comments have been positive and I agree, this is a good move but think they should offer the customer the service route they want. If they don’t have enough operators then this is going to fail miserably. I would suggest a system that has web, telephone, chat and any other way they can think of to take care of the customer as quickly as possible and in the format the customer wants to be dealt with.
This is a great approach by Netflix. It demonstrates that there is a real concern for customer service. All too often customer service is mere lip service. Emails can be effective but they can also be impersonal. A live person can fix problems quicker and can turn an unhappy customer into a satisfied customer. Hopefully, Netflix is also measuring that they are delivering what they are promising. Are they meeting the customers expectations?
Sounds like Race has the data on this one but, as usual, that won’t deter me from offering an at least slightly contrarian point of view. What people want from customer service is to have their problem resolved. If the fastest and easiest way to do that is online via email, that’s just fine with me. In my experience the companies that excel at this are the ones who offer the “live chat” options. This is much akin to self-scan at retail outlets. Sometimes and for some people the best service is when no human interaction gets in the way.
Having said that, if a consumer cannot get their problem resolved immediately, the second thing they want is empathy. It is very hard to have empathy with an avatar. But it is also hard to have empathy with a person whom you either can’t understand or who knows nothing about your problem.
Data confirms this approach: For customers who have a problem, a whopping 92% of them prefer a live person on the phone to help them rather than online/email/chat; and they prefer it by an average of 8 on a 1-10 scale versus 2 for the online options. In other words, not only do customers prefer the phone to resolve problems, they MUCH prefer it.
Hurrah for Netflix. This is a rare example of a new-tech company doing customer service right. Let’s hope it sets an example others follow.
Of course people want to speak with real people, but they also don’t like it when their DVDs skip on a routine basis!
Too many companies consider Customer Service as an expense, not a part of the complete sales process. Buying an airplane ticket, renting a car, buying a computer and checking out at retail, all without any human contact may look good to the accountants. But the consumer then equates the company with not having a personality. So, when I take my business somewhere else, they will not care. Poor personal customer service may be even worse. Losing direct contact with the customer is never a good idea.
People want to talk to real people when they have a problem and be assured everything is taken care of and the matter will be resolved. Absolutely, the perception will increase if the customer service representatives are trained well. If they are just another answering service that have not been empowered to resolve problems and make decisions, then the answer is no.
Online customer service for many companies is very poor. It’s easy to get into internet cyberspace and go around and around. You have to wonder if anyone in the company has ever tested the process and have seen how laborious it is for the consumer.
This is a great step in providing outstanding customer service and Netflix has blazed a new trail for online shopping. It is important for any online merchant to back up their products or services with excellent customer service and customers want to be able to speak with a live person if there is a problem, concern or question. In the short term, it may cost a little more but the perception of providing excellent customer service will be priceless in the long run and I believe that will be a deciding factor that the consumer will look at between choosing Blockbuster or Netflix.
I called Netflix just now, to see if the people on the phone gave quality service. I got a recording saying the wait time would be 9 minutes. How many customers like waiting 9 minutes?
When you have the ‘giant’, Blockbuster, in the industry down for the 10 count and then you allow your major rival to get to its knees, you can hear the heavy lady singing.
Even though Netflix out-marketed Blockbuster in the beginning of its start-up and growth stage, Netflix lost its competitive edge, including its consumer service function for a number of reasons. Importantly, Netflix didn’t have a plan for when the ‘giant’ began to retaliate.
I agree real people-to-people service is needed; its a little late, and only a solid marketing plan away! Hmmmmmmmmm
Cost and efficiency are important and can be managed effectively with new call center technology. But nothing can beat a real, live person who is a good listener, sympathetic and empowered to solve problems.
Offering both options as Blockbuster is doing may be best, as that allows consumers to choose if they want to call or email the company with a problem or comment.
More Discussions
Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?OpenAI Names the Infrastructure Standard for Agentic Commerce
Will OpenAI or Google (or another entity) set the gold standard for agentic commerce?Is Five Below Poised For Even Greater Growth?
Five Below is hitting serious growth numbers. Can this trend continue?
The other comments have been positive and I agree, this is a good move but think they should offer the customer the service route they want. If they don’t have enough operators then this is going to fail miserably. I would suggest a system that has web, telephone, chat and any other way they can think of to take care of the customer as quickly as possible and in the format the customer wants to be dealt with.
This is a great approach by Netflix. It demonstrates that there is a real concern for customer service. All too often customer service is mere lip service. Emails can be effective but they can also be impersonal. A live person can fix problems quicker and can turn an unhappy customer into a satisfied customer. Hopefully, Netflix is also measuring that they are delivering what they are promising. Are they meeting the customers expectations?
Sounds like Race has the data on this one but, as usual, that won’t deter me from offering an at least slightly contrarian point of view. What people want from customer service is to have their problem resolved. If the fastest and easiest way to do that is online via email, that’s just fine with me. In my experience the companies that excel at this are the ones who offer the “live chat” options. This is much akin to self-scan at retail outlets. Sometimes and for some people the best service is when no human interaction gets in the way.
Having said that, if a consumer cannot get their problem resolved immediately, the second thing they want is empathy. It is very hard to have empathy with an avatar. But it is also hard to have empathy with a person whom you either can’t understand or who knows nothing about your problem.
Data confirms this approach: For customers who have a problem, a whopping 92% of them prefer a live person on the phone to help them rather than online/email/chat; and they prefer it by an average of 8 on a 1-10 scale versus 2 for the online options. In other words, not only do customers prefer the phone to resolve problems, they MUCH prefer it.
Hurrah for Netflix. This is a rare example of a new-tech company doing customer service right. Let’s hope it sets an example others follow.
Of course people want to speak with real people, but they also don’t like it when their DVDs skip on a routine basis!
Too many companies consider Customer Service as an expense, not a part of the complete sales process. Buying an airplane ticket, renting a car, buying a computer and checking out at retail, all without any human contact may look good to the accountants. But the consumer then equates the company with not having a personality. So, when I take my business somewhere else, they will not care. Poor personal customer service may be even worse. Losing direct contact with the customer is never a good idea.
People want to talk to real people when they have a problem and be assured everything is taken care of and the matter will be resolved. Absolutely, the perception will increase if the customer service representatives are trained well. If they are just another answering service that have not been empowered to resolve problems and make decisions, then the answer is no.
Online customer service for many companies is very poor. It’s easy to get into internet cyberspace and go around and around. You have to wonder if anyone in the company has ever tested the process and have seen how laborious it is for the consumer.
This is a great step in providing outstanding customer service and Netflix has blazed a new trail for online shopping. It is important for any online merchant to back up their products or services with excellent customer service and customers want to be able to speak with a live person if there is a problem, concern or question. In the short term, it may cost a little more but the perception of providing excellent customer service will be priceless in the long run and I believe that will be a deciding factor that the consumer will look at between choosing Blockbuster or Netflix.
I called Netflix just now, to see if the people on the phone gave quality service. I got a recording saying the wait time would be 9 minutes. How many customers like waiting 9 minutes?
When you have the ‘giant’, Blockbuster, in the industry down for the 10 count and then you allow your major rival to get to its knees, you can hear the heavy lady singing.
Even though Netflix out-marketed Blockbuster in the beginning of its start-up and growth stage, Netflix lost its competitive edge, including its consumer service function for a number of reasons. Importantly, Netflix didn’t have a plan for when the ‘giant’ began to retaliate.
I agree real people-to-people service is needed; its a little late, and only a solid marketing plan away! Hmmmmmmmmm
Cost and efficiency are important and can be managed effectively with new call center technology. But nothing can beat a real, live person who is a good listener, sympathetic and empowered to solve problems.
Offering both options as Blockbuster is doing may be best, as that allows consumers to choose if they want to call or email the company with a problem or comment.