Netflix creates loyalty with every conceivable tool of friendly persuasion, from high-tech market analysis to low-tech phone banks manned by people famous for coaxing smiles out of grumps. Result: a vibrant, highly successful enterprise that has beaten off numerous competitive threats and built an ever more credible promise of future growth.
Face it: America is a rich country with mediocre services. What happens when one of your electronic gizmos dies in action? Does the manufacturer instantly send you a personal apology, plus a reimbursement offer, plus a special phone number to call for further help? Of course not....
This is a good short history of how NetFlix evolved its movie rental business. It covers how NetFlix adapted its business service from a pay per rental to a subscription service based model. There is some good information on how NetFlix focuses on customer service including primarily using highly qualified customer service representatives – CSRs instead of online support systems as a way to create much happier customers.
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