Netflix: Where is the accountability ?

You know that you have royally screwed up when the Nightly News covers your brand and says you have lost more than a million customers while your CEO has to apologize and say that it was due, in part to arrogance. People are going to make mistakes, that’s a given, but when your CEO makes a mistake of this magnitude and your stock drops like a stone in water there has to be some accountability to the people who work hard on your brand, your customers, and shareholders.

The defection of customers from Netflix because of a price increase is nothing short of amazing. Over 1 million people have essentially told Netflix to stick it where the sun doesn’t shine and it all likelihood it’s going to cost a lot of money to get these people back. Sure the CEO went on You Tube and their website to apologize but consumer are already pissed off at a lot of other things and right now they are not in a forgiving mood.

Now if this was a middle level marketing manager who made this decision you know they would have been walked down to HR and then outside the building but not CEO’s. They are allowed to make huge mistakes that cost the brand and shareholders a LOT of money and even if they are shown the door it’s usually with a cash pile that ensures they never have to work a day in their lives again.

So can Netflix make comeback ? Yes they can but it’s going to be expensive. Here is what they need to do..

1ne: Continue to say they are sorry and send a personalized message from the CEO to all customers.

2wo: Offer current customers and those that defected an offer “they can’t refuse” because you value them as long term customers and want them back.

3hree: The Board should immediately replace the CEO of Netflix. His brand is too tarnished and he is not going to be an effective leader anymore.

4our: All hands on with employees asking their forgiveness for letting the brand down as well as incentives to go the extra distance required to make Netflix a great customer brand.

5ive: A way for consumers to voice their feedback directly back to senior management and having senior management again say “I’m sorry” and “I hear you and we’ll try and earn back your trust and business”.