I was struck with just how different it is in other businesses and we received a nice example of that this past week.
Netflix (the online streaming company, and former IPO darling) raised prices last month, much to the dismay of their customers, and they suffered mightily. Their stock dropped from about $220 since last month, closing today at about $113.
Like we see all too often however: One man's crisis is another man's opportunity.
Enter Netflix competitor Blockbuster and their new owner.
Sensing an opening last week - not in a month, or after they formed a committee - they got rolling.
"The decision by Netflix to raise prices on its DVD and video streaming rental packages did more than kick off the company’s slide in terms of customer happiness (and share price). It gave rival Blockbuster a rare opportunity to strike back, Twitter-style."
On September 19th, the day Netflix was getting clobbered for the first time:
- Blockbuster started a new Twitter contest, promising a free year of service for the four best Netflix breakup stories.
- In some cases Blockbuster has used direct messages—DM in Twitter parlance—to entice users—preferably those with a large Twitter followings–to promote Blockbuster offers in return for free subscriptions.
- Blockbuster sponsored the word “Qwikster” on Twitter. When users searched Twitter for Qwikster, Blockbuster messaging would be the first to pop up in the search category. (Netflix hastily started a new arm for DVD rentals called "Qwikster", but failed to land the twitter account)
- The team has also directly interacted with 150 thousand people in its #helloBlockbuster campaign.
Customers do not fall in your lap, they have to be earned through hard work. In today's world of streaming movies and DVD's the response is swift - almost immediate. Poker was shut down in April, and we're still waiting for racings response.