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Strategy & KPIs
Case Study: Netflix
Prepared by Bellakarina Solorzano
+
Overview
Entertainment
Industry
Streaming
Service
Monthly
Membership
TV Shows,
Movies,
Documentaries
& More
Available in 190+ Countries!
+
Online Goals
Maximizing
Consumption
of Content
Increase
Number of
Subscriptions
Maximize
Member
Satisfaction
Maximize
Month to
Month
Subscription
Retention
Homepage: Above the Fold
Clear Call to Action & Value Proposition
Homepage: User-Friendly
Value Proposition & Additional Information
Subscription Packages for
Streaming
Call to Action
+
Measurable Actions
n Today users/consumers hop from screen to screen, want
immediate gratification and have high expectations for any
services they sign up for.
n Netflix is a data-driven company that gathers an incredible
amount of information from all users. And everything from
the time of each session to the time users click on the
pause/rewind button can be tracked.
n The key to success is to identify those actions that can have a
significant impact in the company’s decision-making.
+
Conversion Events & Values
Events
Free Trial
Service Upgrades
Retention
+
Data Filters
Genre
Location
Original
Content
Directors
Popularity
Licensed
Content
Producers
Actors
Other
+
Key Performance Indicators
• What devices they engage with? which
features are used?
Product
Development
• Popular titles. Higher retention.
Successful and Failed searches.
Content
Development
• What,When and How much customers
engage. Behaviors. Overall Satisfaction.
Customer
Satisfaction
• Drive better streaming quality and lower
risk of re-buffering.
Technical Quality &
Content Delivery
• Interaction with satisfaction scores to
determine what issues to fix.Maintenance
+
Key Performance Indicators
Average Time Watched
per User/Visit
High
Medium
Low
% Users Interested in
Watching [Content]
Genre: Romance, Horror, etc.
Movies
Documentaries
TV Shows
User Story: Content Manager
+
Key Performance Indicators
% Thumbs Up/ Thumbs
Down
Content Quality
Content Retention
Content Popularity
% Users Interested in
Watching [Specifics]
Actors
Directors
Producers
Writers
User Story: Content Manager
+
Key Performance Indicators
%Content Watched
based on Suggestions
Successful Algorithms
Engagement
% AutoPlay Views
Successful Algorithms
Engagement
User Story: Software Engineer
+
Key Performance Indicators
%Users who Fast-
Forward/Rewind
Needs
User Experience
Abandon Rate &
Completion Rate
Content Needs & Quality
User Satisfaction
User Story: Software Engineer
+
Key Performance Indicators
%Click Through Rate
Promotion Success
Free Trial vs. Cancellations
Subscriber Acquisition
Cost
Content Needs & Quality
User Satisfaction
User Story: Marketing
Manager
+
Key Performance Indicators
Viewership vs.
Licensing Costs
Maximize Revenue
Minimize Costs
Biggest viewership relative to
the licensing cost.
User Story: Business Strategist
+
Example: Netflix Original
Orange is the New Black
n Creator Jenji Kohan’s show “Weeds” was
quite popular on Showtime.
n Weeds streamed on Netflix and constantly
featured on popular and trending
categories.
n Jenji Kohan created “Orange is the New
Black” and Netflix picked it up. And it
really paid off!
+
Example: Show Revivals
Gilmore Girls & Fuller House
+
How well is it working?
Personalization is powerful!
n 75% of Netflix views result from
recommendation or personalized ranking.
n No two Netflix channels look alike. It’s
about delivering the right content at the
perfect time based on user past behavior
and highly sophisticated and accurate
algorithms.
n For Netflix, personalization means
building “a unique experience for every
single user.”
Thank You
Prepared by Bellakarina Solorzano

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