In branding, compassion is often seen as taboo.
Compassion for customers and commercial optimization are typically considered to be diametrically opposed concepts, but Netflix has demonstrated how this doesn’t necessarily need to be the case.
This month Netflix announced they would begin contacting inactive customers with the intent of offering free contract cancellation for those who may have been financially impacted by the covid-19 pandemic. If the customer agrees, or doesn’t respond, Netflix intend to cease billing them for the subscription. Netflix have stated; “The last thing we want is people paying for something they’re not using… we hope this new approach saves people some hard-earned cash.”
A glance into the detail demonstrates this is hardly grounds for a Nobel Prize. Apparently inactive accounts make-up less than 0.5% of Netflix’s accounts – and this at a time when accounts have grown by 15% as a result of more people with more home time due to covid-19. Further, the correlation between inactive accounts and financial strain from losing your job are tenuous at best. But with a business model that is usually focused on capturing annuity income and making it tough for customers to leave contracts, you’ve gotta give Netflix the thumbs up for perhaps re-setting expectations of how subscription-based products and services should behave.
A little compassion goes a long way when it comes to brand engagement. With that in mind, perhaps every brand owner should be asking themselves; ‘how might we show some compassion to our clients or customers who are doing it tough at the moment’?
Truly Deeply is an Australian-based branding agency with 30 years experience working with brands to position them for growth. Our deep expertise is in the creation of high engagement brands that attract the attention of their audience and stand out from their competitors. We have a deep expertise working with corporate, retail, food & beverage, health and property clients. Find out more here
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