How Netflix Used Data To Grow Its Business And How You Can Too
From a working mom’s viewpoint, Netflix is revolutionary with their recent announcement of an unprecedented parental leave policy. From a business owner’s viewpoint, Netflix is one of the most revolutionary companies in the entertainment industry and as such, is seeing incredible success this year. This success can partly be attributed to business intelligence principles, or, the smart use of data. Here are three ways you can apply similar methods to your own business strategy:
1. Focus on customer experience metrics
Customer behavior data informs you if a product is working and what can be changed. The customer experience should not be a guessing game. Measuring customer data on a company dashboard allows you to understand your customers on a deeper level. You can then modify products to match customers' needs or develop even more specialized products in the future. Data helps you build customer loyalty and improve customer satisfaction. Think about how can your company measure immediate and overall customer engagement and satisfaction.
2. Categorize your products with metadata
Metadata is essentially "data about data." Businesses with scoreboards are able to take customer experience metrics to the next level. Granular details about a particular client experience can be monitored. Ralph Kimball called metadata the "DNA of the data warehouse." As with all data, the metadata on your scoreboard must be actionable. You can perform searches such as how many female customers have purchased the 8 ounce shaving cream in the last 30 days - and even measure against a recent marketing campaign. A dashboard helps you organize and see all your metadata - enabling everyone on your team to analyze and make correlations between business activities.
3. Use data to develop product strategy
The data is guiding the strategy for acquiring and creating new content. For example, Netflix original shows are not accidents - the storyline, actors, and plots are all products of extensive metrics and analysis. Data analysis means focusing on the right data and KPIs to guide strategic decisions. Do you know exactly what your customers want?Do you know how to improve your product based on your current customer metrics?How does the data inform your product strategy for the next 5 years? Companies with a data-driven culture encourage everyone to be a data scientist. One of the benefits of measuring and acquiring data in a cloud-based system is the time save. When key performance indicators update in real-time on a company dashboard, CEOs can make quicker decisions. A scoreboard allows CEOs to spend more time on strategy and less time putting out fires. Solid data prepares, informs, and leads. CEOs can't afford to miss critical correlations and metrics when developing product strategy. How can you implement these strategies in your own work and use data to take your business to the next level?