Netflix cancels members who stopped watching.

By Polle de Maagt · First published · 3 min read

Most subscriptions profit from people forgetting to cancel. Netflix did the opposite.

A remote control on a blanket on the sofa, the television behind it switched off
Still paying, no longer watching. Image made with Midjourney.
What it does

Shows how doing less for a customer, on purpose, buys trust that more marketing can't.

Company
Netflix
Sector
StreamingSubscriptions
Theme
Customer trustRetention
Place
Worldwide
Year
2020
<0.5%of members were affected, according to Netflix.

“At Netflix, the last thing we want is people paying for something they’re not using.”

Eddy Wu, Product Innovation, Netflix
Part 1 of 3

What they did.

If you haven't watched anything for a year after joining, or for two years at any point, Netflix asks whether you want to keep your membership. No answer means no more charges. Rejoin within 10 months and your profiles and settings are still there.

Part 2 of 3

Why it works.

Best practice · 2 min readA newsletter that unsubscribes you.Kevin Rose removed every subscriber who had not opened his last four…Subscriptions run on inertia: most of them earn money from people doing nothing. Netflix gave up a sliver of revenue, less than half of one percent of its members, and bought trust in return.

Part 3 of 3

Try it yourself.

Reflection · 4 min read38° view, not 360° view.Everybody wants a 360° view of the customer.Use what you know about a customer to do less, not more. Fewer emails because you know what they don't want. Less retargeting because they already bought.

send less, because you know more

Try this

Use what you know about a customer to do less, not more.

Source: Netflix. Quote: Eddy Wu, Product Innovation, Netflix.

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Polle de Maagt

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