In class we talked about, how important it is for companies to listen to it's clients. There were several cases that we discussed that really made that point. The case with PSE, talked about how they listened to their customers and made changes accordingly. They watched to see what they were saying on twitter and Facebook, and then used that information to their advantage. In doing this, they were able to reach many more customers.
When looking to an article about companies listening to their customers, I found one that worked perfect. In this case not listening to their customers was the problem, and the company lost many of them because of it. The case I found is about Netflix. In the summer of 2011, Netflix decided to change the packages that they offered. They wanted to separate the programing into two different packages. When doing this there was a 40% increase in the price of the packages. The company lost 800,000 customers, and it's stocks dropped dramatically. Before they changed their packages they had focus groups, asking what customers thought of the changes. The company then said that, they weren't sure what exactly people had said about the new changes during these focus groups. This is a prime example of a company not listening to it's customers.
That's very interesting what happened to Netflix and how they resorted to actually listening. I was a Netflix user until last summer and I decided that I was paying to watch old movies. I didn't have much use for the service but I could believe that they saw a significant drop in the stocks from a mistake. This company seems to make a lot of marketing mistakes. When they increased the price to $7.99, customers didn't agree with the price hike. If the quality was worth the price then the argument wouldn't happen. Glad to know they had a focus group to present the missing information to them.
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