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.

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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
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.

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

What you can steal.

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

Steal 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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