[PPT]PowerPoint Presentation - · Web view2013/08/15 · Netflix Case Study August...
Transcript of [PPT]PowerPoint Presentation - · Web view2013/08/15 · Netflix Case Study August...
Introductions• Leah Brady, Product Marketing
Providence College, 2014
• John DelSignore, Bank of AmericaBoston College, 2015
• Kathryn McKennon, Customer Experience Boston College, 2014
• Connor McNamara, Mid-Market SalesUniversity of Vermont, 2014
• Alex Wu, Kellogg’s & UnileverNortheastern University Master’s Program
Epsilon’s Vision
client/brand needs
• Macro and micro insights• Integrated, multi-discipline
marketing competencies—”marketing technologists”
• Direct customer engagement• Channel• Content
• Cost-effective value• Proprietary platforms and
customization• Accountability
customer needs
• One-to-one engagement content• “Know me”
• On their terms• Media Channels• Timing
• Brand relevance• Authentic experiences• Recognition• Value
SWOT Analysis• Strengths:
• Strong brand:• Top provider of streaming content in the U.S.• Value of brand name on the rise since release of original content
• Weaknesses:• Undertaking large amounts of debt:
• To fund the mass licensing packages used to acquire content from other providers.
• Physical media delivery service has suffered greatly since the growth of the digital LOB
SWOT Analysis• Opportunities:
• “Cord-cutting” trend creates new demand for internet-based TV
• Original, in-house programming• Redirect percentage of marketing budget• International growth
• Threats:• Internet Service Providers• Competitor growth
Netflix Business Needs
• Interested in developing new strategy that would allow for growth in both markets, including:• Improving analytic capabilities• Forming strategic partnerships with ISPs• Developing transmedia properties
Leverage Our Partners• Streamline multi-channel technologies
• Smart TVs, Tablets, Game systems
• Develop new capabilities• Integrate “app store”
WB CampaignMarketing DB
Epsilon Hosted
Marketing Solution Tools
Marketing Automation
Query & Reporting
Campaign Management
Email/MobileDeployment
MarketingResourceManagement
Data Mining&Analytics
LoyaltyProgram
or
RecommendationOptions
Future?
or
(Hosted at WB)
• What is CDI?A data processing domain relating to the accurate and consistent representation of customer data across enterprise systems.
• What does Agility do?Helps to realize the full potential of valuable customer. information
Customer AcquisitionCost of subscriber acquisition: $16
Monthly cost of service: $7.99
Average subscription lifetime: 25 months
Customer lifetime value: $291.25
• As of April 2013, 5.7% of Netflix users were not paying for the service.
• Abuse of free trial offer.
• “Virtuous Cycle”
• Challenge: getting users to follow up free trial with a paid subscription.
Epsilon Solution
RESULTS• Realized $3.4MM in incremental spend in the first year• New member activation communication open rates
averaged over 34% vs. the promotional average of 22%
SOLUTION• Educate members on program and
franchise offerings and improve customer engagement through a reactivation strategy and campaign
• Increased likelihood that a new program enrollee would transact and ultimately become a valuable customer
CHALLENGETo increase transactions of program enrollments and no longer have any “stagnant” members
• Maximize free trial conversions.
• Mimic success of Hilton case:
• Last reported churn rate: 5% (2009). • “The company doesn't report churn,
but Sanford C. Bernstein puts it between 40% and 50% annually” (Wall Street Journal).
Customer Retention
• Customers cancel subscription once they finish a certain show.
• Challenge: Implement a more accurate recommendation software to keep users coming back.
Epsilon Solution
• Data Analytics Services.
• Modeling and Profiling.
• Discover why they go and where they go.
• Cut down on attrition.
Internet Data Usage and Netflix Today
• Internet data usage in the U.S. has jumped 120% in the past year.
• Netflix continues to be the largest user of Internet Bandwidth in North America,
with its video traffic jumping more than 35% in one year.
• Accounts for one-third of peak-period downstream traffic in North America.
• Netflix is working to create relationships with ISP’s to save money on content-delivery costs.
• They have started program called Open Connect aimed at broadband service providers to directly connect with ISP’s.
• Netflix has signed up Cox Communications, Cablevision Systems and Suddenlink Communications, but wants to continue to expand their program.
Epsilon’s ISP Relations • Epsilon has a great relationship with ISPs.
• Marketing Policy Summit
• We are in contact with more than 100 major ISPs globally.
• Our deliverability team monitors ISPs on a daily basis.
Netflix could greatly benefit from Epsilon’s relationships with ISP’s globally.
Future Engagement
• Strategic Consulting: • Recognize decreasing marketing budget.• Develop unique solution set:
• Agility• Email campaigns• Loyalty Program• Technology enhancement• Leveraged relationships