NetFlix provides streaming services to its customers in various countries including the United States of America, United Kingdom, and Sweden among others (Bell & Koren, 2007). Customers have issues that need attention from the service providers through support services.
In light of setting up the support services, they have to consider the needs of customers in order to ensure that the support services are focused on customers. Secondly, they have to evaluate the support services offered by their competitors to make sure that they earn competitive advantage.
Needs of Customers
Regarding NetFlix support systems, the service providers should have various services. Currently, they have provided solutions to the commonly asked questions and problems. For other problems, they allow their customers to make direct phone calls to the customer care center. It is understandable that calls are very expensive, especially for the foreigners hindering the customers from using their services and opting for other service providers (Bell, Koren & Volinsky, 2010).
As a result, NetFlix should incorporate online chatting system in their support services. The chatting systems are more efficient than making the calls. The introduction of the online chat support services will help retain the customers who are already attached to NetFlix and attract new ones.
Previous research, which was reported by Forbes magazine, showed that a company loses a lot of customers due to lack of online chats (Luo, 2008). This is due to the increasing demand for online chats in support services. In fact, it states that online chats have become a popular way of communicating and cannot be ignored. The magazine suggests that it cannot be ignored because it has become a way of life.
A physical helpdesk is a must-have for this service in order to serve the people who need physical attention. Such customers might be returning some DVDs or seeking some other help. This desk will help the business to attract such customers and retain them in their business. Although the introduction of online chat and helpdesk is essential for NetFlix, it is important to evaluate the competitors.
Support Services offered by Competitors
In this light, I shall consider Redbox as one of the robust competitors that NetFlix has in the market. Redbox has an online chatting system that allows its customers to chat with the service providers. This implies that they are ahead of NetFlix by enabling their customers to have more avenues for communication than their counterparts. Customers might prefer Redbox to NetFlix based on the efficiency of this communication between the customers and the support staff.
In addition, they have a toll free helpline for customers. The introduction of a toll free call line is a great idea by Redbox. This reduces the cost of contacting the service providers making it more appealing than a paid helpline (Luo, 2008). They have the question and answer platform that provide answers to frequent questions.
In this analysis, it is clear that Redbox has introduced more communication services as compared to NetFlix. This may lead to increase in the number of Redbox’s customers and a consequently decrease in the number of NetFlix’s customers. It is, therefore, important for NetFlix to consider a system that incorporates new communication avenues that they have not implemented yet in order to maintain their competitive advantage.
Bell, R. M., & Koren, Y. (2007). Lessons From The Netflix Prize Challenge. ACM SigKDD Explorations Newsletter, 9(2), 75.
Bell, R. M., Koren, Y., & Volinsky, C. (2010). All Together Now: A Perspective On The NETFLIX PRIZE. Chance, 23(1), 24-24.
Luo, X. (2008). When Marketing Strategy First Meets Wall Street: Marketing Spendings And Firms’ Initial Public Offerings. Journal of Marketing, 72(5), 98-109.