Today I read an interesting article about Netflix and how they’ve lost 800,000 customers. More than likely you are aware of this fiasco made by the CEO of one of the biggest video rental companies in the US.
The CEO decided to split their product in two and raise their prices. This caused a great deal of anger with their customer base, and as a result, many of them dropped the service.
From what I have read, I understand that the CEO decided to do this without any market research. He did not listen to his customers at all but arrogantly decided to make this decision.
Now Netflix is admitting their mistake and doing damage control. I don’t know what the outcome will be, but as a Netflix customer myself, I hope they get it straightened out soon!
This fiasco made by Netflix underscores the importance of listening to your prospects and customers. It’s so important to have your ear to the ground and know your audience. Making arrogant decisions just because you have the power as the business owner may result in loss of market share!
So listen to your customer. Do market research. Get to know your audience.
This fiasco made by Netflix is a great object lesson in why that’s so important!