There’s a lot your business can learn from this tech giant.
- Netflix has grown into one of the most successful companies in the world over the past few decades.
- This is done by creating highly personalized user experiences and always looking for new opportunities.
- Today’s small business owners can learn from Netflix’s success to grow their companies.
Netflix is one of the biggest and most popular companies on the planet, so it’s easy to forget that it was once a pretty small operation. But over several decades, its founders grew their business and adapted to a rapidly changing market until their streaming service became a staple in nearly every home.
Even if you’re not trying to provide top-notch entertainment, you can probably still learn a few things about how to grow your company by studying how Netflix built its business. Here are the three main things that got right.
1. He wasn’t afraid to try something new
Netflix has always been quick to embrace new technologies. It was one of the first to recognize the potential in DVDs when they appeared in the late 1990s, and introduced its streaming service in 2007, long before many of its other competitors appeared on the scene.
Not every small business needs the latest technology to operate successfully, but it’s important not to get too stuck in your ways. If you avoid new technologies, services or strategies in your business, you may find yourself stagnating.
Build in some time to review your company’s performance and try to identify new opportunities for growth. If they don’t work, you can always go back to the drawing board. But if they prove to be successful, they can give your business a competitive edge.
2. She kept her pricing really simple and transparent
One of the reasons Netflix became so much more popular than traditional movie rentals was because it eliminated deadlines, late fees, and rental fees. All you had to do was pay a monthly subscription fee. This was much easier for people to budget for and then they didn’t have to worry about returning the DVDs within a certain time.
A subscription model might not suit your business, but you can still try to make things simple and transparent for your customers. Don’t charge extra at checkout and make sure customers understand what they are and aren’t getting.
If you do some type of custom work — like building custom furniture, for example — you may need to quote each job individually, depending on the work involved. Try to be quick in providing these estimates and explain how you arrived at your number so that customers are not left guessing.
3. Focus on providing a good user experience
Of course, a big key to Netflix’s success is having a wide variety of content that appeals to a diverse audience. But too many options without any kind of direction can be confusing and overwhelming. Netflix helps users navigate this by customizing its user interface and updating its recommendations based on previously viewed content to help identify new movies and shows of interest.
You may not be able to customize it, depending on the type of business you run. If you run an online store where you sell a variety of pre-made products, you may not have as many options for customization.
But you can still try to make the user feel as valued as possible instead of just being a number. Great customer service can help generate repeat customers and word of mouth, so the extra time you spend here can pay dividends in the long run.
Every business is different and how you apply the above tips will depend on the product or service you are trying to sell. But keep them in mind as you grow your business over time. They may seem obvious, but it can be easy to lose sight of them amidst everything else you need to do to keep your business afloat.
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