Netflix: It’s SMART to track KPIs
The Company
Almost 25 years ago, Reed Hasting and Marc Randolph had an idea. They wanted to give people the option to rent DVDs by mail. People would no longer need to run out to the video rental store. In 1999, Netflix offered a mail subscription service that allows members to order unlimited DVD rentals without any due dates or late fees. In 2007, Netflix introduced streaming, allowing members to watch films and television series instantly online. Netflix expanded its services to 130 additional countries in the year 2016. Bringing their services to a total of 190 countries and offering over 30 languages (About Netflix — Homepage, n.d.).
Netflix Inc. intends “To entertain the world” (About Netflix). Netflix identifies two main points of its mission statement:
1. Entertainment
2. Worldwide scale
Their corporate vision is “To continue being one of the leading firms of the internet entertainment era.” Netflix strives to be at the top of the competition (Rivera, 2019).
Company Objectives
The following objectives are in-line with the Netflix mission and vision statements. Netflix has been on a constant climb in subscribers over the past several years. It would only make sense for the number of subscribers to continue to grow as Netflix becomes available in more countries.
- Increase Netflix worldwide subscribers by 25%. Reaching a total of 254.58 million subscribers.
- Increase overall engagement on the official Twitter account and gain more followers.
Setting SMART Goals (corresponds to objective number)
SMART stands for specific, measurable, achievable, relevant, and time-bound. The following SMART goals are specifically for a corresponding objective, can be measured, achievable in the given time (or with a slight extension), relevant to the timing projected growth of Netflix, and based on a set timeline.
- Based on the 22% increase in subscribers between Q4 2019 and Q4 2020 (1 year), Netflix is striving to see a 25% increase between Q4 2020 and Q4 2021 or an overall total of 254.58 Million subscribers.
- Netflix currently boasts 26.6 million subscribers on Instagram. However, they have less than half the number of followers on Twitter (11.1 million). Netflix plans on increasing its engagement and growth on Twitter. This process will be evaluated on the same quarter system to analyze improvements and setbacks. This includes gaining more followers. Netflix will use several key performance indicators (KPIs) to measure followers' engagement: impressions, use of specific/branded hashtags, clicks, replies/comments, retweets.
How?
The best way for Netflix to continue to gain monthly subscribers to its service is to continue releasing high-quality original shows and films. Shows and films that are only available to Netflix users such as, Bridgerton, The Witcher, Stanger Things, Tiger King, To All the Boys I’ve Loved Before, and more.
It is ubiquitous for individuals to share their Netflix account passwords with friends or extended family members who are not subscribed to the platform. Recently Netflix has been testing a way to combat password sharing. An alert from Netflix will pop up on a user's screen if they believe someone to be using an account is unauthorized to do so. This “crackdown” on password sharing will hopefully result in more people creating legitimate and individual Netflix accounts (Hannon et al., 2021).
By engaging more with Twitter users that show interest in their content, Netflix will more than likely earn more followers. There are several ways that brands can engage through their tweets. For example, using the poll feature, using visuals (pictures, gifs, or video), using relevant hashtags, and using shortened links are just a few tips (Sapra & Sapra, 2016). It is also essential for brands to have great customer service. Responding to users tweeting Netflix promptly, no matter if the topic is positive or negative, is another way to boost engagement. People will tweet at brands asking questions, commenting on recent developments, things they enjoy, and their dislikes. Knowing how to respond promptly and respond within a reasonable time period will help the brand's reputation on social media. A responsive company cares for its customers and its product or service.
Outcome
Some outcomes that develop from social media efforts include social listening and monitoring. Netflix can continue to monitor how people respond to announcements, bad press, opinions on new original shows and film releases, and so much more. Twitter is where users can share what is on their mind about a particular brand or topic surrounding a brand. For example, if bad press arises over a film that Netflix releases on its platform, it can easily rectify the situation with a statement based on social listening and monitoring opinions on social media.
Resources:
About Netflix — Homepage. (n.d.). About Netflix. Retrieved March 12, 2021, from https://about.netflix.com/en
Carter, R. (2020, December 8). Exploring the Top 10 Twitter Metrics You Should Be Tracking Today. Sprout Social. https://sproutsocial.com/insights/twitter-metrics/
Hannon, B. P. D., Reuters, & Chadwick, J. (2021, March 12). Netflix cracks down on users who share passwords after hiking subscription fees. Mail Online. https://www.dailymail.co.uk/news/article-9353333/Netflix-cracks-users-share-passwords-hiking-subscription-fees.html
Netflix. (2021, February 22). Netflix Mission, Vision & Values. Comparably. https://www.comparably.com/companies/netflix/mission
Rivera, A. (2019, November 10). Netflix’s Mission Statement & Vision Statement: A Strategic Analysis. Rancord Society. https://www.rancord.org/netflix-corporate-vision-statement-mission-statement-strategic-analysis
Sapra, M., & Sapra, M. (2016, September 21). 10 Tips to Increase Engagement for Your Brand on Twitter. Social Media Today. https://www.socialmediatoday.com/social-networks/10-tips-increase-engagement-your-brand-twitter
Statista. (2021, February 10). Netflix subscribers count worldwide 2013–2020. https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-worldwide/
