AUG 20, 2008
Netflix Gets it Right
Donnie 
0 commentsClient Services Manager/Public Relations
With the Olympics winding down and network television still in full rerun
mode, I found myself surfing Netflix to schedule my next batch of evening
entertainment. Interestingly, I found a notice on the Netflix website (since
removed) apologizing for a technology snafu that prevented the company from mailing DVDs to roughly eight million subscribers last week. I also found
this article:
http://bits.blogs.nytimes.com/2008/08/15/lessons-from-netflixs-fail-week
in the NY Times, referencing Netflix's corporate reaction and the positive response from its customers.
It's true, you cannot beat good customer service these days, and from a
public relations standpoint, honesty is – and always will be – the best
policy. Netflix reacted in the right way, admitting the mistake, apologizing
and offering a discount to its customers. But Netflix customers were also
quick to offer the company a free pass. Why? Netflix views good customer
service as an extension of its brand. The lesson here is that solid,
proactive brand management aids successful reputation management in crisis situations. Yes Netflix lost money, but here’s an example where even though the bottom line suffered, the brand reputation remained largely unscathed. That's worth far more than the $6 million the company paid out in
retribution to its customers.
