Netflix Conundrum: A Conundrum By Any Other Name

... is still a conundrum.  I know Z hit this briefly this morning, but I wanted to expand a little.

Netflix is renaming its DVD-by-mail program.  The red envelopes will continue, but the name Qwikster will be stamped on them.  Personally, I am still not impressed.  A name change means nothing, and after their 60% price hike they lost a lot of customers and even more trust from remaining customers.  This is a whole lot of  media for a very small change.  The addition of games will be nice, but it may be an example of too little too late for customers who feel burned and misled.

Netflix CEO Reed Hastings manage to irritate people more than comfort them in the wake of the price hike.  Netflix customers lashed out not only at the price hike, but how it was handled.  Customers were sent a very dry and borderline rude notice of the price change, without explanation or apology for the circumstances.  In fact, there was no mention of the circumstances at all.  Customers were left without any reason to explain the increase.  When that explanation finally came, it was again delivered terribly and with a "sorry about your luck" approach that was as off-putting as it was informative.  The article I read first said it perfectly, it's like someone saying "I'm sorry what I said offended you," instead of a simple "I'm sorry."

Netflix has become a monster in technology, but it goes to show that even the most successful business has to treat its customers well or face the consequences.  In this case, Netflix has shown where they need to improve.  Instead of fighting the technology, a little customer relations work could go a long way towards preserving their future.