Netflix Versus Blockbuster

 

As I was browsing through the programs on Netflix, I came across a documentary from 2020 called The Last Blockbuster. Honestly, I was surprised to know that a Blockbuster store is still open after Netflix shut down the once dominant video rental company. Blockbuster Corporate’s crucial mistake was not accepting the offer to buy Netflix for $50 million in 2000. The corporate leaders at Blockbuster missed out on a company whose annual revenue amounted to almost 25 billion in 2019. Netflix’s steady growth in sales can be contributed to word-of-mouth marketing. Word-of-mouth marketing plays a vital role in building a brand that customers will share with their friends and family for years to come. 

 

A photo of the manager of the last Blockbuster store in Bend, Oregon .Photo from DirectExpose.com

Joining the Conversation

In order for a business executive to effectively use word-of-mouth marketing for their company, he or she needs to interact with consumers on a consistent basis in order to better understand their likes and dislikes.

Netflix effectively utilizes the data from its customers to provide a list of programs tailored specifically to each user. As a diehard Netflix user, there have been many times when I have watched a Netflix recommendation that I would not have picked out at first but ended up enjoying after watching it. Netflix also creates original programs based on the most popular interests among the users. By creating content that is relatable and meaningful to many customers, the company gains followers who become Netflix influencers sharing their experiences with the brand on the various social media platforms.

Word-of-mouth marketing is not just about having a conversation. It is sharing a story. Anyone can have a conversation. What brings value to a conversation is a story that is authentic and honest to the consumer. Stacy Brown, the founder of Chicken Salad Chick, a restaurant with over 180 locations across the country, always shares the story of how she got started with her audience. As someone who has worked in her restaurant and had the chance to meet her, I can say that she displays herself in a humble manner. She never forgets how her restaurant, which began by cooking her homemade chicken salad recipes out of her home in Auburn, Alabama, became a multi-million dollar corporation. In 2018, Chicken Salad Chick earned more than $110 million in system wide revenue.

Opinion Leaders

Businesses with a word-of-mouth marketing strategy tend to use opinion leaders, such as Instagram celebrities and YouTubers to help gain the trust of their customers and to increase sales. Customers tend to focus on a brand when they are interested in the influencer promoting the product or service. According to an article entitled ‘Seven Must Have Word-of-Mouth Marketing Strategies’, 40 percent of consumers have said they bought an item online after seeing it used by an influencer on Instagram, Twitter, Vine or YouTube. The article also states that 49 percent of consumers “rely on recommendations from influencers when making purchase decisions” (Sukhraj, 2018). A celebrity could promote Amazon by having a baby registry on its website like Khloe Kardashian. Or a celebrity could support a cause like Vanessa Hudgens did with alcohol brand Stella Artois for its ongoing cause marketing campaign. The purchase of one of Stella Artois’s limited edition chalices provides one person access to clean water for five years. Influencers are the messengers of a brand’s story. 

Although influencers have a large following on social media, consumers are more interested in purchasing a product from a family member or friend. In a study, “90 percent believe brand recommendations from friends” (Sukrahj, 2018). I tend to focus less on influencers and more on family and friends when it comes to online purchases. I am the type of person who wants to know what someone not getting paid to promote a product thinks of the item I consider to purchase. Family and friends referrals make up the bulk of a business. Think of the last blockbuster. This store is not only surviving, but thriving. Even in a pandemic, the store still stands. But why? Its loyal customer base keeps it running. Since 2000, Ken and Debbie Tisher and Larry and Berniece Doan have owned the Blockbuster franchise in Bend, Oregon. Before Blockbuster, the Tisher’s operated three Pacific Video stores in the town. The franchise owners are part of their community. They converse with their customers in person more than on the web. They are creating meaningful experiences for their customers. As long as customers continue to promote the store to others through recommendations, the store will keep going. For the employees and management at this store, it is more than a piece of nostalgia. It is a way of life.

Social causes

Many well-known brands like Starbucks and the NBA use their platforms to express opinions on social issues. In January 2017, #BoycottStarbucks was trending after the company announced it would hire 10,000 refugees in five years after President Trump’s travel ban was initiated. In 2016, The NBA organization voiced its opposition to a law in North Carolina that prevents local governments from enacting statutes that would protect against discrimination towards members of the LGBT community. The organization threatened to move its 2017 All-Star Game from Charlotte. In 2019, a federal judge rules against North Carolina’s government banning transgender people from using bathrooms in state buildings that match their gender identity. Supporting a social issue can have positive and negative effects for a company. Companies that engage in a social cause bring real, authentic conversations to the forefront. These business executives are telling customers where they stand on certain social issues.

In conclusion, word-of-mouth marketing is a critical component to the success of companies like Netflix. If Blockbuster Corporate could have gone back to 2004 when they reached their peak of success, they should have focused on their customers and influencers to build their brand. If a word-of-mouth marketing strategy was used, maybe Blockbuster would have more than just one store in 2021. It is not just about the products. It is about the people buying the products. Customers drive business.

References:

Sukhraj, R. (2020, December 24). Seven Must Have Word-of-Mouth Marketing Strategies. IMPACT. https://www.impactplus.com/blog/word-of-mouth-marketing-strategies

Comments

Post a Comment

Popular posts from this blog

Houston, we have a problem

Image
  One of the most memorable movie quotes comes from Ron Howard’s 1995 movie Apollo 13 . Jim Lovell, a character played by Tom Hanks, called Mission Control at the Manned Spacecraft Center, which is now the Johnson Space Center in Houston, Texas to say “Houston, we have a problem.” Lovell reported an issue that involved a series of problems that the center worked to address. The center was facing a crisis that they knew was a life or death situation. The astronauts were able to return to Earth thanks to the diligent efforts of the team members at Mission Control. So what does a Tom Hanks movie have to do with crisis communications? Mission Control had to find a solution to a series of problems that had lives at stake and their reputation on the line. While crisis communicators are not necessarily put in life or death situations, they do have to focus on having a plan that can repair their company’s brand when it is put at stake.    Crisis Communication Plan Public relat...
Read more

Social Media's Impact on Brand Reputation

Image
  In college, I realized the importance of having a personal brand on social media. My personal brand showcases my creativity through writing and multimedia. Job seekers can use an online personal brand to display to potential employers how their skills and qualities set them apart from other candidates. Businesses establish online brands to showcase their products and services to their target audience. To stand out from the competition, strategic communicators must produce online messages that create an impact and start conversations that can build relationships with clients. Social media has the capability to bolster or damage a company’s brand. When a company suffers backlash from a post on its social media page, then its trust with its customers is damaged. In today’s discussion, I will talk about how to protect and build online brands.      Protecting Brand Reputation Strategic communicators must have safeguards in place when there is a comment that displeases...
Read more

Lollipop Moments

Image
  Before I decided to pursue a Master of Science degree in Strategic Communications, I did not think of myself as a leader. I thought that I had to be a manager or an editor in order to be a leader. But then I watched Drew Dudley’s 2010 TED Talk for this class. Dudley spoke about everyday leadership and how we all have been the catalyst for what he calls a ‘lollipop moment.’ We create lollipop moments by making a difference in the lives of the people around us. I did not give myself credit for the leadership moments I have had helping people. I thought being a leader was something I could not achieve. But it turns out I have been a leader all along.    Being a leader is not an impossible role that only a few privileged people can fulfill. We can all be leaders in our everyday life. Building a house or paying for someone’s meal are just some lollipop moments that people can do for each other. I have a better understanding of what it means to be a leader. It is not about t...
Read more