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7 personalization lessons from Netflix: The $25 billion empire

Many other companies offer streaming services, and that too are nowhere near as successful. Even Amazon Prime Video doesn’t come close to bringing in Netflix’s annual revenue.

What’s the big secret?

Netflix believes that is the key to success personalization. In fact, they were one of the first to introduce mass-scale personalization using AI technology.

This has helped them stand out in a crowded marketplace and provide a great user experience for their customers.

In this article, we’ll look at 7 Personalization Tricks Netflix uses to apply to your ecommerce business today.

What is personalization?

Personalization is much more than just sticking your customer’s name on a product.

It’s the process of customizing the entire end-to-end customer experience based on two types of information:

  1. The information that the user provides.
  2. The information the company collects from user behavior.

Knowing this, a company like Netflix can send its users hyper-relevant offers, messages, and recommendations at exactly the right time and place.

This massively increases the likelihood of a positive reaction. A 2018 survey by Accenture found that “91% of consumers are more likely to shop with brands that recognize, remember, and provide relevant offers.”

The stats look good, but that doesn’t mean personalization is without its challenges.

The challenges of personalization

The two biggest challenges in personalization arise from the multitude of new platforms and channels on which your customers are active.

With Facebook, Instagram, Twitter, LinkedIn, and even various devices like cellphones and smartwatches, the first challenge is to collect, track, and understand the data coming in from the various locations.

Once the data is sorted, the next challenge is to send your customers the right message at the right time on the right platform. All in a way that makes the customer experience seamless across all channels.

As you can imagine, mass-scale personalization is a monumental task. But now let’s look at how Netflix tackles the challenges and creates great user experiences.

Big idea # 1: personalize early and set user expectations from the first interaction

If you’ve ever browsed Netflix on someone else’s account, you’ll find that their Netflix experience is very different from your Netflix experience.

Netflix does this very consciously, and they tell you that right away.

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