The Customer Experience Model

At Transition Networks, we believe that branding is the foundation of marketing. Marketing in turn creates the customer experience, and the customer experience creates brand equity. Brand equity contributes to metrics that the executive suite understands, like profitability and shareholder value.

Branding > Marketing > Customer Experience > Brand Equity

It's a very simple business model that took us several years to evolve and clarify.

NETFLIX is among the leading customer-centric organizations in the world. How does NETFLIX create and benefit from the customer experience?

The NETFLIX brand is the customer experience. NETFLIX fills the need for media anytime, anywhere in whatever display device you choose to watch your favorite shows. It personalizes the experience for 33 million members in 40 countries. Not only is NETFLIX a media preference, the brand name can be a verb, a noun, or a generic reference (like Kleenex). In other words, NETFLIX is synonymous with people's daily lifestyle.

John Mello of PC World writes about ForeSee's customer satisfaction rating, which scores e-tailers on a scale of 0-100. While NETFLIX's rating last year was 81, it is trending upwards. More important, it has crossed over the magic 80 point mark, which ForeSee calls the "Threshold of Excellence." Scoring at 80 or above is an indicator of superior customer satisfaction performance.

What is the value proposition? NETFLIX is adept in tracking and communicating customer preferences and experiences. This becomes a simple connection and engagement with each and every member. The ease and reward flows both ways.  NETFLIX becomes an emotional lifestyle commitment by the member, who is likely to recommend a film, concert or TV show to someone else.

By comparison, other media delivery models are currently zooming off the cliff (e.g., NBC). These brands don't understand today's customer experience. Network TV's delivery model is likely to die.

NETFLIX overcame its pricing bobble nearly two years ago and today is the on-demand market leader. However, streaming video challengers are encroaching.  According to, NETFLIX is being chased by three competitors: HBO GO, Amazon Prime and Vudu (the new Walmart Partner).  Other competitors include Hulu, Xfinity by Comcast and Verizon's Redbox.  However, NETFLIX currently has the lead with its superior service and brand recognition.

From NETFLIX'S solid foundation of branding and marketing, its interactive customer experience business model is leading to its competitive advantage and profitable brand equity valued in the C-suite and by shareholders. (Nasdaq: NFLX)

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