The advertising strategy at Netflix has a simple philosophy: They want everyone to use their site. So they have created a way for people to come back on the site regularly and stay subscribed to their weekly subscription. By having a weekly subscription option, the company is able to drive more traffic to their site.
While most of the services have a free trial offer, there are few that actually have a subscription available. While most companies do this, Netflix is not a standard, everyday service. It is a product that many people are going to want to try out before they decide if they like it or not. They believe that by offering a subscription option, they will be able to retain a customer base and increase the number of subscribers that join the company.
Their subscription options are very flexible. There are two basic tiers of pricing. Those who want a monthly subscription are able to get it for just $7.99 a month. Those who want a weekly subscription can do so for $14.99 a week. The company offers free trial periods to customers that choose to take advantage of the weekly plan.
Start up costs for the company are surprisingly low. They charge nothing to create the web site, which does not cost them a lot to maintain. They do not have any programmers or designers on staff, and they don’t need to hire anyone to do anything. It is all handled for them through their partner companies. This saves them money and allows them to focus on getting the product off the ground.
They put their money into their free trial period as well. All of the money that is earned in their first month goes into the promotion of the service. This way, when a customer comes back to sign up for the service, they are rewarded with a discount or some type of bonus.
Subscriptions are easy to purchase. There are only a few buttons on the site, and it is very clear what each one does. Customers can sign up for a free trial as well, but they have to pay at the end of it. There is also a fee associated with making a credit card payment for their services.
Another thing that Netflix puts their money into is their free trial period. This way, customers know that if they want to take advantage of the entire plan, they are able to do so. The company then keeps using the service and saves themselves from needing to upgrade the account every so often.
Marketing is an important strategy at Netflix. It’s a proven method of driving more traffic to the site, and while it might not bring in the same amount of money, it is important to keep people coming back to the site. This means that there is no need to charge the customer.
- Damon Nam is Disrupting the Blockchain Industry with Emerging FinTech Company, Coin. - November 6, 2020
- Meet Entrepreneur Quinelle Holder, THe Founder of Medium Creative Agency - September 30, 2020
- Thomas Auringer: Building Buildings and Building Cultures - September 23, 2020