Real Feedback Loops Don’t End
A feedback loop is mechanism for systems to self-regulate and adapt by using feedback. A feedback loop a can for a single cycle (such as in a survey) or can go on indefinitely. The indefinite feedback loops are tablestakes for developing an alchemy between brands and people. It begins by receiving input, interpreting the information, making adjustments, incorporating the new amand then repeating the process with the new amended information..
Customer surveys and other methodologies are great for making short term decisions or taking the pulse of customer satisfaction, But unlike singular exchanges, feedback loops are opportunities for valuable ongoing conversations..
The Transformational Effect of Real Feedback Loops
Feedback loops pave the way to transforming a brand. Through a feedback loop, brands can find new and unexpected terrain. They can become something markedly different. Most importantly they create an authentically original brand identity that is impossible for other brands to imitate. Why? Because brands that use feedback loops reflect the shifts in culture as they happen.
Netflix
Netflix began as a disruptive concept in the video rental space by mailing DVD rentals directly to customers. Then internet took companies by surprise by upending the way products were sold. Netflix was no stranger to innovation. It wasn’t long before Netflix realized that the internet could be a powerful continuous algorithm-driven digital feedback loop. It was these cycles of customer input, output, and response that Netflix underwent an unexpected transformation to become a powerhouse of originality.
For most content providers, the internet revolutionized the way people could consume and access a vast amount content. But Netflix saw that the opportunity didn’t stop there. Being that Netflix relied on their feedback loop for direction and tailored customer journeys, they saw how they could use the internet to create a deeper, more powerful feedback loop.
The Transformations Continues
Like feedback loops, Netflix continued to undergo more transformations. This expanded ability allowed Netflix to discover that viewers often let episodes pile up so they could sit down and binge on multiple episodes and favorite ice cream. What did Netflix do? They began streaming an entire season of episodes that could be downloaded all at once. Netflix also expanded their feedback loop to encompass a diverse range of users by age, gender, country, language, economic status, geographic location, etc. to equally satisfy each particular desire for specific content. Netflix became one of the few companies with negligible gaps between different markets which resulted in an unimaginable growth in their number of subscribers.
Elasticity-Driven Originality
Netflix’s was highly elastic which allowed them to shift direction, quickly adapt to changing market dynamics, and evolve into the behemoth it is today. Netflix’s boldest (and risky) move was to start creating original content. Netflix learned that a significant number of search box entries were for movies reviewed as “fresh and original” as well as searched for actors and directors known for making those kinds of movies. These cues from viewer searches led Netflix to begin creating Netflix Originals.
Staying In the Loop
Through their ongoing use of a feedback loop Netflix continued to shift, adapt, and push the boundaries of their platform. They began coming out with more content that featured women in powerful lead roles. They started offering movies and shows from and for other countries with content in over 60 languages. Ongoing communication furthered cemented Netflix place in viewer centric on-demand streaming by serving up video games, famous stand-up comedian acts, and high production value original content that raked int the awards and nomination for Emmys, Golden Globes, Oscars, Screen Actor Guild, and in Sundance, Peabody, and PETA.
Ask and Ye Shall Receive
Ask people for their feedback and you’ll get what you asked for.. Act on their feedback and your customers will receive what they asked for. You’ll have important information to guide decisions. More importantly, your users will know they are heard and that they mean something to you. And when both keep giving, both keep receiving.
Currently Netflix has over 270 million paid subscribers – over half of which are with Netflix for their original content. As a result, Netflix reported a revenue of over $9.4 billion in the first quarter of 2024. What’s next for Netflix? Their customers will be sure to inform them.
