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Introduction
Netflix has 223 million engaged paid users globally as of the third quarter of 2022. With different genres and diverse collections of content, Netflix not only gained fans from all over the world but also rivals in the video streaming platforms and cable television sectors.
From movies to TV shows and originals to anime, Netflix has content for every age group. But have you ever wondered how a company like Netflix has captured the whole market? Netflix used a ruthless marketing strategy to raise the company’s valuation to $126.85 billion in 2022. Let’s try to break down the marketing strategy of Netflix and understand how the company is expanding its territory in the Indian market.
Three Pillars of Marketing Strategy
- Content
- Quality of Product Application
- Customer service.
These are the three strongest areas where Netflix’s marketing strategy lies. Let’s take a closer look at Netflix’s marketing strategy.
The content perspective of Netflix
The major game of Netflix is the content, and to penetrate it, Netflix has a marvelous algorithm. Netflix’s algorithm knows about your taste in content consumption. It shows the movies and TV shows that are particularly relevant to you. Overall, the homepage experience is different for every single user. When a user finds content that is relevant to him, he starts to consume more.
That is where the game begins!
Quality of Product Application
When you land on the Netflix website or app, there is nothing you will see or learn. The Netflix app is so simple to use that even a kid finds nothing to learn and can navigate through the app freely. As a result, the user interface is what keeps the user stuck for long periods of time. Moreover, you can access Netflix from any device, as it offers content in many formats, such as HD, SD, and UHD.
Customer service
It doesn’t matter if you are an offline or online business if the customer is not satisfied with the services you offer. He’s not going to come back. This is where Netflix made more effort. They have made significant investments in their content in order to provide the best possible experience for their end users.
Marketing strategy of Netflix
The marketing strategy of Netflix has certain factors that have made this company one of the biggest giants in the world. Rather than using traditional marketing techniques, Netflix conducted extensive market research to determine the appropriate audience and then adapted marketing techniques accordingly.
The following are the primary components of Netflix’s marketing strategy:
- Digital Marketing Strategies
- Subscription video on demand (SVOD)
In contrast to other streaming platforms and the typical business model in this sector, Netflix has made extensive use of digital marketing. Netflix has used multiple channels of digital marketing to spread awareness about the brand and make it popular.
The business offers a comprehensive online support center, customer phone assistance, and live chat alternatives for its social media staff. The success of Netflix has come to depend on these services.
Netflix’s digital marketing strategies
- Social media marketing
- Influencer Marketing
- Regional Content Marketing
- Personalized Content Marketing
- Website Design
- Email Marketing
Let’s discover how Netflix uses each of its digital marketing channels to generate buzz online by breaking each one down.
1. Social media marketing
Social media is the place where people of every group are present. Some of them use it to get entertained, while others use it to make content. To market anything on social media, businesses connect to their target audience with relevant content, and that is how the connection is built.
There are generally two ways to market social media:
- Organic
- Advertisement
How Does Netflix Promote It’s Business Using Social Media Marketing?
Netflix doesn’t only go the usual route of marketing its content; it also heavily promotes its content on social media platforms like Twitter, Facebook, and Instagram. The motive of Netflix is to create content for social media that can be relatable and engaging.
That is why you must have seen many funny memes and posts on its account. Each post attracts a lot of interaction from the audience.
As for the Indian market, they know how quirky and humorous writing can help them gain admirers. So they generally create jokes on movies, famous TV shows, and characters and hire young talents who understand the art of creating memes.
Reasons Behind Creating Funny Content
One of the most important reasons for creating funny and witty content is to maintain open lines of communication with customers.
Moreover, with such an open conversation, they understand the psychology of their customers and serve them better by answering their queries. Thus, social media plays a major role in their digital marketing strategy.
2. Influencer Marketing
You’ve probably seen actors and cricketers on television promoting various brands. One of the fundamental reasons why brands approach influencers to promote their products is that people around the world know the influencer from their work. Thus, when their favorite actor, cricketer, or influencer talks about something, the audience is more converted.
How does Netflix use influencer marketing techniques?
Netflix uses influencer marketing more than anyone in this space. With this strategy, Netflix can reach a rising audience of Gen Z and Millennials, who lean more toward the influencers they admire than any advertisement with a salesperson in it.
Not only that, but to promote the shows, Netflix uses influencer marketing techniques to tap into the lives of the new generation. As with influencer marketing, they can reach a wide range of audiences, and by collaborating with influencers, they publicize their content around the world.
3. Regional content marketing
Creating a brand requires content marketing. Moreover, the taste of the audience is increasing every single day. Consumers won’t absorb material that isn’t authentic, regardless of language or medium. Regional content marketing is a technique to reach dispersed audiences that are passionate about their native tongue and dialects.
Regional marketing can also make the content go viral in certain regions or countries. Producers create content in multiple languages to increase the number of consumers and, as a result, the likelihood of the content going viral.
How does Netflix employ this marketing strategy?
Netflix is also developing dubbed versions of the content in order to revive it in the long run. Netflix started promoting one of the famous series, “13 Reasons Why,” on social media in 2016. The series’ dubbed editions were made available in Hindi and Malayalam.
One of the main reasons for making the content available in different languages is that the viewers find it easy and simple to consume. Apart from that, to promote the content, they use social media advertisements.
4. Personalized content marketing
One of the most effective marketing techniques is personalized content marketing. It works based on the customer’s choice of what they want to consume. The major role of personalized content marketing is the algorithm that is used. When the content is shown according to the user’s personal relevancy, such marketing is called “personalized content marketing.”
How is Netflix winning its users’ hearts with personalized content marketing?
Due to its extensive content library, Netflix has fans all around the world. On Netflix, users can pick from a broad range of foreign movies and TV shows. When you view a movie or television episode on Netflix, the platform sorts out all the content based on your genre preferences and displays it on your home page. As a result, every customer receives a different set of recommendations, and when a user discovers the content they prefer, they become more devoted to the platform.
5. Website design
A user’s first impression of a platform determines whether they will enjoy it. This is why UI is crucial to helping customers feel welcomed as soon as they visit your platform. Companies spend a significant amount of money on UI and UX improvements for their website and application to increase conversion rates.
Netflix’s way of doing UI and UX
Customers can rank TV shows and movies on Netflix’s website thanks to its user-friendly design. The Netflix algorithm computes, according to your watch history, what content to show up on your feed. To enhance the client experience, they have optimized each page using onsite optimization. To make it simple for clients, they designed their website to display information by title, actor names, and even director names. To add different customization elements to their website, they have the best engineers in the world.
6. Email Marketing
Email marketing is the heart of digital marketing. It is one of the oldest and most underrated marketing techniques, with an average conversion rate of 15 percent. When companies ask for your email address, they are asking for permission to market to you. When you submit your email ID, they start nurturing you with values and important information in your inbox while plugging in their offers as well.
What is Netflix’s approach to email marketing?
As part of its digital marketing plan, Netflix used email marketing. It plays a significant role in customer onboarding as well. A series of emails are sent to new Netflix subscribers with suggestions for material and invitations to explore the service. Hours are spent by Netflix marketers producing engaging email marketing campaigns that please recipients. They continue to improve the consumer experience with the best email marketing services.
Subscription video on demand (SVOD)
Let us find out how the subscription video-on-demand model of Netflix is dominating the market more than anyone else.
The term “subscription video on demand,” or SVOD, is used to offer on-demand access through a subscription model. Viewers of SVOD pay a subscription fee, which commonly ranges from monthly to yearly. They have unrestricted access to the platform’s video content thanks to their subscription. Subscriptions might last from one day to more than a year, depending on how much content you have to offer.
How has Netflix won customers in India with the SVOD model?
When Netflix launched its official platform on January 6, 2016, in India. The population of India is large enough to do business, and the younger generation is active and has active consumption habits. These were some favorable reasons that led Netflix to make a major investment in India. With this growth, it has effectively satisfied the wide range of consumer expectations in India and adopted a more sophisticated subscription video-on-demand (SVOD) model.
In terms of revenue from subscriptions generated per user, Netflix is considerably ahead of its rivals. Despite the rise of competing for SVOD services, Netflix remains the market leader thanks to its far higher average revenue per subscriber (ARPU).
For their customers, Netflix now offers a monthly plan that is more flexible. Additionally, for India, Netflix developed a different offer for its mobile consumers. Thus, this company’s growth took off immediately after using this methodology.
Netflix Accessibility
Netflix’s streaming service allows customers to view their preferred shows whenever and wherever they choose. It is accessible twenty-four hours a day, seven days a week. The streaming service also gives customers the freedom to view all of their content with one subscription. As Netflix has so much original and shared content, it gives you access to all of it whenever and wherever you want with a single subscription.
Conclusion
When it comes to the big giants in the market, Netflix cannot be excluded. The company, which is now worth $128.85 billion, has come a long way. Netflix uses so many marketing tactics to win its customers’ hearts. In the article, we dissect the way Netflix uses digital marketing channels to promote its business in India and around the world.
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