How Netflix habits helps entrepreneurs to understand
their target audiences
This is
the era of digital disruptions where markets, industries, and lifestyles are transformed
by key actors or new entrants. One of the main challenges for companies in this
era is to gather precise and relevant information about their customers or
potential customers. With more than 100 million of users, the disruptive
innovator Netflix collect numbers of personal data that a lot of firms could
profit and take advantage of in order to reach their target audiences.
As indicating
in the article of Deren Baker in the Entrepreneur, “What Netflix Habits Reveal
About Your Target Audience” (October 2017), understanding the demographics
of a show’s audience is capital to capture customers insights and motivations. Doing
so is a way for businesses to adapt their marketing and advertising strategies,
like defining the type of advertising they want to display, when and where.
The article
presents three ways in which Netflix helps entrepreneurs to understand their
target audiences:
1."Build out richer demographic profiles”
Netflix can
collect specific information about its customer habits and preferences, and therefore
the company can create a personal selection of movies and series for each of
them. With this kind of information, firms can now intervene in the customer
journey, instore a relationship with their target audiences, and gather up-to-date
data. The article says that “companies
that meet their goals are 7.4 times more likely to have recently updated their
profiles”.
2."Check out competitors’ content”
Companies
can track where and what other content Netflix users consume, and then take
actions. This gives a step ahead to companies compared to their competitors
because they can anticipate and adapt their advertising strategy. Also, it is
important to underlie that not every firm can successfully collect data, only
10 percent of marketers are able to do so according to the article.
3."Personalize […] messaging”
Personalization
strategy not only help creating an emotional link between businesses and customers,
which is vital in digital marketing, but also helps addressing the right issue
and therefore becoming a brand reference in the mind of customers. The article relates
that “79 percent of companies surveyed that had beaten their goals for annual
revenue had personalization strategies”.
The ability
of Netflix to understand the typology of its customers is a superior
competitive advantage. It can help entrepreneurs in different ways as we saw
above, mostly the American service helps businesses to have a better
understanding of their target audiences. The whole idea with the use of Netflix
information, is to discover the needs of the customers even before they realize
they have ones. However, Netflix is keen on keeping private its viewership statistics,
entrepreneurs shouldn’t except too much about the company in terms of data providing.
Sophia
Abdelkafi
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