What Netflix Can Teach You About CRM Personalization

written by

Jim Mucci

posted on

July 3, 2024

netflix s crm personalization strategies

Netflix helps make your customer messages better by watching what people like. Just like Netflix suggests shows you might enjoy, you can suggest things your customers will love. When people watch Netflix on their phones or TVs, Netflix learns what makes them happy. Your business can do the same! Watch how your customers use your products and talk to you. Then, sort them into groups based on what they like. The more you learn about your customers, the better you can help them. This is how Netflix gets people to watch more shows, and it's how you can get more happy customers too.

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The Power of Predictive Analytics

harnessing future insights effectively

Netflix learns what shows and movies you like by watching how you use it. Think of it as a friend who remembers what you enjoy watching.

Every time you click, watch, or search for something, Netflix takes notes. It uses smart computer tools to study these notes. This helps Netflix know what to show you next.

When you open Netflix, it picks shows just for you. It's like having a TV channel made only for you. Most people watch what Netflix suggests. In fact, 8 out of 10 shows that people stream come from these picks.

The more you watch, the better Netflix gets at finding shows you'll love. It's like magic, but it's really just clever math and science working to make you happy.

Multi-Channel Data Collection Strategy

Netflix wants to understand what shows you like to watch. They look at many different things to learn about you.

They look at:

How you watch Netflix – on your phone, TV, or computer

When you like to watch your shows

Where you live, to show you local movies

What shows you rate and finish watching

Netflix uses all this info to pick shows they think you'll enjoy. When you watch more shows, they learn more about what you like.

Think of it like a friend who knows your taste in movies. The more you watch together, the better they get at suggesting shows you'll love.

Every time you watch Netflix, you help them understand what makes you happy. This way, they can find the perfect shows just for you.

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Customer Behavior Drives Content

customer driven content strategies

Netflix learns what you like by watching what you do. When you watch shows, rate them, or click around, Netflix remembers your choices.

What you do on Netflix Changes what you see:

  • The shows you watch help find new shows for you
  • How long you watch helps pick what to show first
  • What you search for helps pick the pictures you see
  • What you click on picks what previews to show

Netflix puts you in a group with people who like the same things as you. There are 2,000 groups in total. When you use Netflix more, it gets better at knowing what you might want to watch. It shows you pictures and videos of shows it thinks you'll enjoy.

The more you watch, the better Netflix gets at finding shows just for you.

What You Do What Netflix Does
Watch Shows Finds Similar Shows
Time Spent Picks Show Order
Searches Picks Pictures
Clicks Picks Previews

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Beyond Traditional Audience Segmentation

We look at how people watch shows, not just their age or where they live. We want to know what they like and when they watch. This helps us show them the right stuff at the right time.

Think about these people:

  • Sam loves anime and watches lots of shows on weekends
  • Pat likes true stories about the past
  • Alex enjoys love stories with happy endings
  • Jordan watches scary shows at night

When we know what people like to watch, we can show them more of it. Netflix does this well. They found that 8 out of 10 people watch shows that match what they like.

This way of showing people what they want makes watching more fun. It's like having a friend who knows just what show you'd love to see next.

Real-Time Personalization at Scale

dynamic customized user experience

Making things just for you takes smart tools and quick thinking. Think about Netflix – they watch what you like to watch, what you rate highly, and what you search for. This helps them know exactly what shows to suggest to you.

You can do this too! Start by using smart computer tools that look at two things:

  1. What other people like you enjoy
  2. The types of things you already like

Let the system learn as people use it. Pay attention to what they say and do. This will help your system get better at picking things they'll enjoy.

Just like Netflix shows rows of shows you might like, group your stuff in ways that make sense to each person. Try different ways of showing things to see what works best. Keep watching how people react so you can make better picks for them.

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Conclusion

Think of Netflix and how it knows what shows you like. Your business can do something similar with what you know about your customers. Just like Netflix suggests movies you might enjoy, you can suggest things your customers want. Watch what they do on your website and in your store. Learn from how they shop and what they buy. Then use this info to send them helpful tips and deals they'll care about. This makes shopping feel more like talking to a friend who knows what you like.

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