Category Archives: entrepreneurship

4 lessons your business can use from the mistakes of Netflix

By | digital marketing, ecommerce, entrepreneurship, Netflix | No Comments

Lately Netflix has been making mistake after mistake, and we are here to help your business learn from their troubles. As Netflix attempts to keep up with the times and stay ahead of the market, it has found new ways to fail and cause extreme customer disapproval all over the internet. First, CEO Reed Hastings decided to raise subscription prices, at an almost 60% increase. Then a few weeks later he decided to split the company in two: Netflix (remaining for online streaming) and newly announced Qwikster (continue the DVD-by-mail service). On Monday October 10th, Hastings decided to take back his decision of splitting the company. Netflix is now attempting to stabilize and return back to normal, however it has had to deal with lower stock prices, subscriptions, and customer perception. Here are 4 mistakes Netflix made, and how you can avoid them in your business:

1. Not asking customers their opinion or taking them into account when beginning a large change. Customers will appreciate if they are included in or at least considered when making a large change within the company, especially is that change will affect them. Customers can also give back important feedback that only they can offer as they are the users of the product/service.

2. Forgetting about the usability of a service, and the user experience. The idea of splitting the Netflix service into two companies, where subscribers would have to use two websites to either stream or rent DVDs was a major inconvenience. Customers want what is easy, and after already having used and understood the single Netflix site to do both services they would be unwilling to learn a new site and do twice the work from before. This would result in a loss of subscribers overall.

3. Not being genuine or explaining your actions to customers. Its important to always keep customers informed. Of course price changes occur but explaining the reasoning behind it and being sincere may ease the reaction. Customers are more likely to be understanding of the change, and would result in less of a negative drop.

4. Making yourself irrelevant in the present because you are so concerned about the future. CEO Hastings knows online streaming is the way of the future for movies, TV shows, and gaming. He wanted to focus his attention on the streaming aspect of Netflix while the Qwikster company would handle the DVD-by-mail aspect. Although in theory this seems to make the most sense, the demand has not reached a level where this makes sense in the mind of the customer. Subscribers still enjoy both services and want both of them to stay as they are. As right as Hastings may be about the future, the market makes the decisions about the present.

For now, Netflix has raised its prices, kept its business structure and has been stung by criticism of their flip-flopping ideas. Hopefully they can return to being a leader in the movie/ TV show viewing industry that we have enjoyed, and we in the digital industry have all learned a lesson.

Being a Digital Agency is Easy

By | agency life, entrepreneurship, small agency, startup | 2 Comments

There’s so much to consider when starting up your own digital agency and here’s the list that circulates my brain everyday from when I wake til when I fall asleep around 3-4am each morning.

  • What category do we fall into? Digital Agency, Interactive Marketing, Social Design Consultants
  • Should we offer services in everything we’ve ever done?
  • Who can I reach out to in order to extend our network?
  • What big agencies would have large amounts of overflow work?
  • What companies are hiring for roles that they could save money on by working with us?
  • Is it better to hire on or partner with another team?
  • Am I spending my time on the right stuff?
  • Is our environment the best it can be for our team?
  • When is it time to expand into a bigger office?
  • When are we launching our social media analytics tool?
  • When is the website redesign going to be completed?
  • Am I spending enough time with my family?
  • When will I sleep?

There are some harsh realities when starting up a digital agency. And there are so many great things that come with it as well. Can you focus on the good things and let the little things roll off your back? Some of the most important things about a Digital Agency are: love who you work with, never give up, be creative when looking for projects, tap inspiration from those around you and believe that what you envision as the point of sustainability will be there soon.

As much as this translates into some of the daily challenges I face as the CEO and co-founder, it also should show that I embrace transparency outside of my own walls. I’d love to hear people’s thoughts on some of the things they are challenged by and see if we can create some great tips and resources for other agency leaders.

cheers

BJ

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