Question

3 What benefits does a company like Netflix gain from marketing analytics? Might this translate into increased customer lifetime value and, if so, why?

Answer 1

3. Netflix employs analytics in two important ways, both driven by customer behaviour and buying patterns. Significant reason for Netflix’s success today is that it is an analytical competitor. Analytics can support almost any business process.

Netflix employs analytics in two important ways, both driven by customer behaviour and buying patterns. The companies that have been competing on the basis of analytical skills, have been the leaders in the industry they have been operating in and this does not come as a surprise. The online content creation and distribution company, which has grown from $5 million in revenues in 1999 to $8.3 billion in 2016, is a prominent example of a firm that competes on the basis of it's mathematical, statistical, and data management prowess.

Yes this will translate into long term customer value because:

The fact that Netflix developed a website catering to the tastes of the individual consumers. Netflix analyses customer's choices and customer feedback on the movies they have viewed over 1 billion reviews of movies they liked, loved, hated, and so forth and recommends movies in a way that optimises the customer’s taste. Netflix will often recommend movies that fit the customer’s preference profile but that aren’t in high demand.