Netflix customer satisfaction drop 14% according to a USA Today article called Survey: E-commerce customers generally satisfied. The article was featured  on the front page of it’s Money Section on Feb 21, 2012.

The American Customer Satisfaction Index released its  e-Commerce report on Feb 21, 2012.  According to the article, the Netflix result “.. is one of the biggest drops in the index’s history”.

In a prior post Netflix responds to customer social media outrage, I told you about how Netflix had raised its prices significantly (60%). That led to consumer backlash.

Then the Netflix broke the company into two, Netflix and Qwikster,  requiring their largest set of customers (over 50%)  to deal with two separate companies rather than just one.  More consumer angst.

Then the company backtracked on the break up, so consumers could continue to work with only one company (see `Customer Ire forces Netflix Business Model Change`).

Netflix lost over 800,000 subscribers.

For more on the Netflix story see What is the value of Customer Satisfaction? Netflix Case Study

This recent survey confirms what has been a well know debacle by Netflix. These survey results prolong the recovery of Netflix  in consumer’s eyes. A report like this in widely read national newspaper, damages Netflix reputation again. It reinforces those who stopped being subscribers and it causes propects to pause before engaging with them.

The lesson learned from this story is that once you get into a downward spiral, it can continue to hurt you long after you have taken corrective action or tried to minimize the issues that caused the problem in the first place. It takes a long time to turn around customer satisfaction.

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Adele Berenstein

Adele Berenstein is an Experienced Customer Satisfaction Executive, recently retired from a Large Global IT Organization after a long productive management career including Sales, Marketing, Services, teaching and education center management and most recently, 19 years in customer satisfaction management. She turned around divisions with customer satisfaction problems, implemented measurable improvements and management systems, and implemented programs to prevent problems from ever affecting customers.

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