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Customer Retention
2005-01 UPDATE - Market Snapshots
of the WEB
December 2004. Netflix embraces social
networking with Netflix Friends, a review and rating system shared between subscribers.
The primary purpose is to add value for existing users, only secondarily is the
move seen as a way to attract new users.
-source: Netflix
COMMENT 2005-01. Social networking
is highly successful as a viral marketing system, i.e. growth through word of
mouth. This "closed circuit" use of it should prove its value as a retention
tool, reducing churn (subscriber turnover) and increasing value perception. Undoubtedly
the loyalty developed can be leveraged into attracting new users almost at will
in the future.
2004-11 UPDATE - Market Snapshots
of the WEB
October 2004. Amazon has enabled its users
to upload their own images of "products in action".
-source: Amazon.com
COMMENT 2004-11. This is seen by
the industry as easily on a par with user reviews - a brilliant move from a classically
innovative merchant.
2002-05 UPDATE - Market Snapshots
of the WEB
May 2002. User evaluations show that word
of mouth drives more traffic than search engines or links. 98 percent of satisfied
users send friends to websites, but only 1 percent of dissatisfied users would
do so. Thus, user satisfaction is key to a successful website over time. Users
are generally satisfied with navigation systems and user friendliness (two long-standing
complaints). Users remain unhappy in these areas: (1) content not updated frequently
enough, (2) no way to personalize the site, (3) in-site search tools not good
enough, (4) download speed too slow.
-source: Taylor Nelson Sofres
2002-03 UPDATE - Market Snapshots
of the WEB
February 2002. Users who contribute product
reviews or post messages on a website will visit the site nine times more often
than noncontributors - and will make purchases nearly twice as often. The most
effective community features are connected to all parts of the site. The most
effective community sites also offer incentives, such as recognition and brief
biographies, to frequent contributors, and are maintained to keep out inappropriate
content.
- source: McKinsey & Co
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