Netflix | Customer Service Solutions, Inc.

Home  /  The Hidden Netflix Customer Service Gaffe  /  Netflix

Look for a Stop Sign - 2/3/26


As a customer service professional, what you say matters.  The information you’re providing is useful.  The direction you’re giving the other person is helpful.  But... As you’re speaking, you also need to be reading.  Reading the other person.  Watching the customer, determining whether and how they’re receiving what you’re sharing.  Read more

When They Want the Supervisor - 1/27/26


Maybe you did your best with the customer, or maybe the customer didn’t even give you a chance.  They want to talk to your supervisor.  They see you, notice your title does not have “supervisor” or “manager” or “director” or “President and CEO” in it, so they want to Read more

Identify Your Point of Empathy - 1/20/26


I was watching a webinar recently on empathy.  The speaker mentioned that empathy - to a large extent - is something that you are born with.  It’s something that’s very difficult to learn.  And while I agree that some people are predisposed to being empathetic and understanding of others Read more

Pressure is a Privilege, but... - 1/13/26


When athletes are asked about the pressure of a playoff match or a late-game situation, many times they will say that “pressure is a privilege.”  In other words, usually pressure exists because you’re in a match that matters most.  It exists because you are a player put in a Read more

While I’ve Got You on the Phone… - 1/6/26


I’m a big planner.  Whether it’s strategic planning or planning out the year or planning my week first thing on a Monday morning, I like to plan.  I do this because it gets all of my action items documented and ensures that I have some understanding of what I Read more

Pass the Quick Impression Test - 12/30/25


Some studies have shown that people create an impression of you in less than a second when they first meet you face-to-face.  Other studies have shown that that initial impression can take up to 7 seconds.  Regardless, first impressions are quick.  First impressions are not always the lasting impression, Read more

2025 Holiday Poem - 12/23/25


We hear the word change And that change can be good, But we like things to stay same, And sometimes they should.   The weather can be wet And then dry as a bone. We know things will change, Even if all left alone.   Our customers change. Our co-workers do, too. It seems like our resources Are often too few.   The technology Read more

Make the Long Wait Feel Shorter - 12/16/25


When Greg entered the Tax Office, he was thinking only about two things: (1) How he was going to get the tax value on his home reduced, and (2) Whether the wait would be 1 hour or 2.  He checked in with the navigator who asked a few questions, Read more

When Kindness Means More in Customer Service - 12/9/25


Since a large part of the work we do at CSS includes customer research, we have seen tens of thousands of comments over the years about staff, and it is great to hear the positives that customers, fans, and account holders say about our clients’ team members. One word that Read more

Don’t Create the Second Complaint - 12/2/25


Maria was upset.  Rightfully so.  The product delivery was delayed, she couldn’t get anybody on the phone, and nobody would reply to her e-mails.  So, she went down to the store, and she found a customer service representative. After the initial greeting, the employee listened to Maria’s complaint.  While Maria Read more

•••••

The Hidden Netflix Customer Service Gaffe

Posted on September 23, 2011 in Business Advice Please leave a comment

By now, you’ve probably heard how Netflix has lost 1 million subscribers (about 4%) of their customer base due to 100% of their own decision-making. They decided to split their DVD rental service from their video streaming service. This increased the fee for having both services by about 60%.

They thought they’d lose subscribership, and they lost more than they thought. But this was part of a long-term strategy, one that they’re sticking to for the time being.

If you ignore the obvious customer anger at the price increase and the risk of this strategy (which will probably be an M.B.A. case study in a couple years), there’s a seemingly minor issue that’s created a lot of unexpected backlash.

Customers who keep both services will now receive 2 bills which they have to pay separately.

Yes, Netflix now has created more work for its customers. This is the opposite of great customer service.

We often talk about reducing the “hassle factor” for your customers, the need to make it easy for customers to do business with you. Netflix has taken a strategic change in their business model and made it more of a hassle for customers to do business with them.

Start thinking about your company through the eyes of your customer. In what ways is it a hassle for your customers to access information from your company, to get answers to their questions, to get through to a representative, to purchase a new service, to request a refund, or to pay a bill?

Make sure your great strategies don’t create great barriers to your customer’s satisfaction.

Listen to our latest podcast of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/