💻 Engagement & Retention For Netflix

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Engagement & Retention For Netflix

A brief view on the engagement & retention on flix

As this project took away all my chills, we're going to decode the engagement and retention analysis of a brand that designed to make you CHILL.

TUDUMM! Here we go...

A brief on

:

At Netflix, we want to entertain the world. Whatever your taste, and no matter where you live, we give you access to best-in-class TV series, documentaries, feature films and games. Our members control what they want to watch, when they want it, in one simple subscription. We’re streaming in more than 30 languages and 190 countries, because great stories can come from anywhere and be loved everywhere. We are the world’s biggest fans of entertainment, and we’re always looking to help you find your next favorite story. (Source)

CVP of the MVP of OTT:

Experience high-quality streaming service of the world's best shows and series.

How do users experience the CVP of Netflix Repeatedly?

With 1000s of titles to watch, netflix lets you stream its shows and movies from anywhere and anytime. The more they watch, the more they are hooked.

Define the action makes a user an active user?

Any user who is streams a movie or at least 1-2 episodes weekly is an active user.

What is the best engagement framework for Netflix?

An in-depth understanding behind why DEPTH is the apt choice over the other engagement frameworks:

Depth = {Frequency * Time/Money Spent}

My findings from user research:

A frequency framework doesn't work since most users spend any time between 30-2 hours either weekly or daily in ONE sitting.

So visiting the app again and again for a short duration may not let the user experience its CVP, hence the frequency framework doesn't apply.

Since there no other sub-products or features that increase the overall experience of the core CVP, the breath framework doesn't apply

Engagement Framework	Key Tracking Metric	Selected	Rationale
Depth	The amount of time spent on the app to watch a title.	Primary	Netflix is designed to make you watch more. The more time you spend = Better are the title recommendations which then = leads to a better experience with the brand.

What is the natural frequency on Netflix?

Casual: Any user who watches either a movie or at least 1 episode weekly

Core: Any user who watches either a movie or at least 2-3 episodes in 2-3 days.
Power: Any user who spends minimum 30-1 Hour/Daily.

User segmentation

We'll be dissecting the user base of Netflix in two types:

Persona Based (ICP Deep Dive)
Casual, Core & Power

The entire user segmentation detailed below is based on qualitative & quantitative user research conducted via surveys and in-person meetings.

Type 1 - Persona Based

General Understanding Of A User

	ICP 1	ICP 2	ICP 3
Age Group	20-25	25-30	30-35
Gender	Both	Both	Both
Occupation	Student or Young Working Professional	Middle Management In Corporate	Senior Management Or Founder
Educational Qualities	Under Grad	Masters	Masters
Relationship Status	Single/Complicated	Single Or Married	Married Or In A Relationship
Living Situation	With Parents Or Roomates	Parents or Partner	Family Or Partner
Kids	NA	0-1	0-2
Top Most Used Apps (Ent/Food,Shopping,etc)	Instagram, Youtube, Swiggy, Nykaa	Instagram, Youtube, Amazon, Zomato, Gmail, BookMyShow, Blinkit	WhatsApp, Zomato, Uber, ET, Linkedin, Amazon, BigBasket
Top Most Used Apps (Payments)	Gpay,	Paytm, Cred, Gpay	Gpay, Cred, Banking Apps
Time Vs Money	Time	Time	Time
How Do They Spend Their Time During Weekdays?	Attend Class or Work (10 Hours) Go to Gym or Play a sport Watch an OTT series	Gym or A Sport Work & meetings Meet up with friends Read books & do mindfulness activities Cooking	Work (9-5) Attend household responsibilities Take out time to work out or go for a run/sport Catch-up on current affairs and economy
How Do They Spend Their Time During Weekends?	Meet friends or family Binge Watch on OTT	Household chores Unwind by stepping out for beer or watch a movie	Take out time to engage in outdoor activities Binge On OTT Routinely meet -up with friends
Social Status i.e Groups	College or School Friends, Office Colleagues or Siblings	Married Partner, Close Friends From Work/College	Married Partner, Close Friends, Other Couples
How Do Stream On Netflix	Mobile	TV, Mobile	TV, Laptop
Other OTT Channels Used	Amazon Prime Video, Hotstar, Zee5	Prime, ZEE5, Jio, Hotstar, AHA, LIV	Prime, LIV, Hotstar
How Do They Discuss Their Views About A Show?	In-Person	In-Person, WhatsApp or Social Media	In-Person Or WhatsApp
Where Do You They Find Info About A Show?	Youtube/Instagram	App or Youtube	On The App Or Instagram

Understanding Their Preference Of Consuming Content Online

	ICP 1	ICP 2	ICP 3
Preferred Medium Of Content	Podcasts, Stream, Long format	Podcasts, Creator Vlogs, Music	Audio Books, Music, Podcasts
No. of Languages Known	Minimum 2	Minimum 3	Minimum 3
No. of Languages They Stream Content In	5-6	Minimum 7	Minimum 5
Types Of Movies/Series They Prefer	Rom Com, Anime, Action, Mystery	Thriller, RomCom, Mystery	Suspense/Thriller, Documentaries, Drama
Open To Experimentation W Genres	Yes	Sometimes	Yes, experiments within genres
General Timing To Watch	Night	Weekends \| Commute \| Night	In The Night \| Free Time
Deciding Factor To Watch A Show	Reviews, Actors In Show	Recommendations, Reviews, Genre	Trailer, Recommendations, Cast

Type 2 - The CCP Model

	Casual	Core	Power
Natural Frequency Of Usage	Once in 1-2 Days\|Daily	Once in 2-3 Days	Once in 3-5 Days
Type Of Paid Subscription	Mobile or Basic	Standard	Premium
Active/InActive/Someone else's Account	Active/Someone else's Account	Active/Someone else's Account	Active
Average Duration Spent	30-2 Hours	2-4 Hours	3-5 Hours
Tenure Of Netflix Usage	2-4 Years	2-4 Years	4+ Years
No of shows/movies consumed	2-4	3-5	2-6
Likes Of Netflix	UI	My Lists	Quality Of Content
Dislikes Of Netflix	Too much K drama Poor Recommendations Increased cost, Removing shows off of netflix	Limited usage Poor content, Bad UX, Overpriced	Price Content Relevancy Request for multiple log-ins
Which Feature Would You Like To Have in Netflix?	Ability to switch off genres you don’t wanna watch and customize what content shows up on your app The facts and actor information that is there on prime.	Content Curation	Netflix Party, Group Conversations Section With Previously Watched Movies
Monthly Budget For Subscriptions for Top 3 OTTs (Netflix, Prime & Hotstar)	500-700	800-1000	900-1200

Engagement Campaigns:

	Campaign 1	Campaign 2	Campaign 3
User Segmentation	Core > Power	Casual > Core	Casual > Core
Goal	Get users to increase their watch time on the app with increased paid subscription	Get users to increase their watch time on the app with increased paid subscription	More engagement on the app and ehancing the user experience by taking part in Flix-a-thon!
Pitch	Watch it, feel it 1 Month before the world does! Upgrade your plan in the next 24 hours and avail Early Bird Access to Exclusive Movies!	Are you a serious chiller? If not it's time to be. Binge Fest is here! Watch 30+ Hours of content in 10 days and win 10% off on your current plan or upgrade to premium with a 15% off. Click Here to Start Your Timer!	Are you the Ultimate Netflix Geek? Take part in the Flix-A-Thon. 30 days, 10Q/Day! Answer the questions, level up by unlocking exciting prizes at each level. We've some realllly big ones in there! Stay tuned for more information.
Channel	In-App Notifications & Social Media Campaigns	Emailers Pop Up After Finishing an episode or movie In-App Notifications	In-App notifications
Offer	Limited Early Bird Access to Exclusive Movies Up to 5 movies	% off on current plan or new plan if they binge the required no.of hours in a particular time frame.	Take part in the Flix-A-Thon: A month long campaign where the user will have to pass through levels of intriguing questions to unlock exciting surprises such as show merchandise, Exclusive Footages and Facts & Plan Extensions.
Frequency	Once a month	Once in 4-5 Days	Once A Week
Timing	Post Completion of 1 movie or series	Daily User Log in	After a user surfs for more than 5 +/- minutes (Thrice a week)
Metrics	% Increase in the plan upgradation CTR %+/- via the in-app notification to the app Social Sentiment (Re-tweets, Likes, Comments) around New Offer Increase in Weekly Average Watch Time	Emailer CTR % CTR % of the CTA button Average Increase in watch time along with region & device mapping Stream completion rate % of DAU opting for Current Vs New Plan Upgradation	Success rate of the Flix-A-Thon Marginal Increase In App Log-ins D90 vs D30 user engagement rate Social Sentiment / Digital Engagement App Installs (Purely app based campaign)

	Campaign 4	Campaign 5
User Segmentation	Core To Power	Core to Power
Goal	Increase watch time by offering discounts/free trials	Introducing a new feature to interact and connect with fellow nextflix'ers to increase social interaction and community building on the app or website
Pitch	Hum Saath Saath Hain ft. Netflix Version! Feel the joy of watching a movie or a show at the same time with your loved ones and get a big discount. It's a win-win for you!
Channel	In-App Emailers WhatsApp Blast	Social Media In-App
Offer	Watch 5 titles with upto 3 friends and map your live progress and get 20% off the paid plan or extension for 2 months for all users.	Enter group conversations with fellow friends on Netflix
Frequency	Monthly Once	Once in 2-3 Days
Timings	When someone starts something new Inactive D14 users reactivation Users with a downward trend of watch time in the last 30 days	When a user logs in, prompt to reply to chats After finishing a title
Metrics	Live Status of show progression Uptick in watch time Title CTRs	Success rate of syncing contacts per user No. of chats created Average Dialogues Exchanged Average Chat Duration Increase in App Interactions

Understand 👨‍👧‍👧

Bird eye View

What is your current retention rate in terms of users?

With less than 6.5 Million Subscribers From India (4% market share), Netflix ranks 3rd in terms of paid subscriptions with Hotstar dominating the market followed by Prime. (Source)
Netflix's user engagement in India grew 30% and has posted a net turnover of Rs 2,214 crore for the financial year 2022-2023 (FY23), registering a 24.1 percent year-on-year (YoY) growth.
According to Sarandos, India has emerged as the fastest growing market for the OTT Giant Global, wih an 30% growth rate in view hours.
Netflix's churn rate is around 2%, which is incredibly low compared to Hulu's 5%. This means that Netflix subscribers are less likely to cancel their subscriptions. (Global)

At what time period does your retention curve flatten? Draw the retention curve

- Netflix has a six-month customer retention rate of 72%. This means that six months after a group of people subscribe to Netflix, 72% will still be there six months later. Keeping this in mind, the below retention curve can be plotted. (Global)

Miscrosopic View 🔬

Which ICP's drive best retention?

Core & Power

Why?	Core & Power
Appetite To Pay	There is appetite to pay for premium or standaed subscription.
Watch Hours	Both cohorts have really high watch hours during week days and in the nights. They also consume content while commuting with downloadable episodes via the app.
No. of titles Consumed	The average no. of titles consumed is higher in this cohort when compared to casual

Which Channel drives best retention?
(Click on toggle)

Youtube & Instagram

Netflix is really huge on community building via their social channels with different channels built for different locales on Youtube along with the interactive content on social. They have their users hooked with really high brand recall & engagement.

Which Features & Sub-features drives best retention?

Add to My List

This lets the user add certain titles and shows to their personal list which increases the rate of completion as they've cut down the time to research for shows when they're in the mood to watch something

Remind Me

This increasing excitement for the user as they eagerly are anticipating to watch a particular show or movie and more likely to retain on the app to watch it.

Top 10 Ranking

With the top 10 ranking, users get a sense of what everyone in their country are watching and are more likely to jump on the same trend. This is clear example of the Bandwagon Bias.

Define 🧠

Reasons for Churn

Reason	Category	User Insights
Poor Content Recommendation	Voluntary	Competition offers better content and sports seasons as well
Netflix/OTT Addiction	Voluntary	The algorithm makes it so that the user increases their watch hours whenever they log in, due to which users get hooked. Some are conscious of their time and end up not subscribing in order to save their time.
Hectic Job & Work Timings	Voluntary	Due to stressful work pressure, some users don't have the time to take out to consume content.
Increased Cost	Involuntary	Due to increased subscription rates, users might find it difficult to continue with their subscription
Removing certain shows/movies	Involuntary	Removal of certain shows and movies increases leakage in brand loyalty as some of them are highly watched on the platform
Request for multiple log-ins	Involuntary	With the new device control mechanism, the friction to log in and access Netflix has increase significantly
Better Recommendations From Competition	Voluntary	Hotstar, Prime & others offer much more localised and quality content than Netflix
Certain titles Not Available With Netflix	Involuntary	Due to it's limited title collection, users tend to other OTT platforms to consume the show/movie they're in search for

Negative Actions For Netflix:

Negative Action	Reason
Decreasing Watch Rate	If the user is not happy with the titles recommended by Netflix, they wouldn't be consuming content on the site hence this leads to a decrease in watch rate
Decreased Frequency Of Return	When users aren't excited about the titles that are currently running, they are less likely to reduce their frequency to return and explore
Increase % of app uninstalls	When a user is trying to cut down their usage of the brand, one of they key indicators is the removal of the app to minimise their usage
Delay in subscription renewal	When a user delays their subscription renewal or downgrades that could be that they aren't going to consume content that frequently or are contemplating the worth of the renewal.
Increase in Support Tickets	Increase in support tickets is a result of dissatisfaction and a distraught user experience which could lead for the user to churn.
Decrease in Show Completion Rate	When a user starts a show but hasn't completed in D30-D60 time frame, it points to the fact that the user isn't fully engaged with the title or isn't returning to netflix more often to complete it
Negative reviews on Social Media	Negative reviews are a direct result of users being disappointed with the service and wanting to voice out their opinions, this also leads to increase negative WOM.
Lesser Engagement on Social Media	While Netflix has really high engagement on their channels, a particular decrease in an age group or location can be a cause of alarm as it could directly be connected to lower view hours.

Resurrection Campaigns

Campaign	Campaign 1	Campaign 2
Context	Users who have not renewed their subscription and have been inactive for the last 14 Days	Users who have decreased rate in watch time.
Goal	Re-activation of at risk users of Netflix	Increase watch hours therefor increasing engagement.
Offer	40% discount on their upcoming subscription cycle	A personality test to curated list of shows basis users character and wants.
Content/Pitch	We'll miss you when you're gone! So don't let us go just yet. Here is a list of the exclusive movies and shows that are to release on Netlfix! PS: No one except you knows it, so keep it a secret :P We really want you to enjoy these shows, so we'd like for you stay with us. Opt for the 40% discount on your subscription renewal and get your "Netflix & Chill" Mojo on!	As personalised as it can get! We understand that certain shows aren't made for you but there are 1000s more that will lift your spirits up! Take this personalised test and basis your results, we will curate a list of shows that fit in your bill and you can access them right from your home feed. Click Now!
Channel	Emailer & WhatsApp	Push notification & Social Posts.
Frequency	Within 25 Days of Inactivity	Once every two weeks
Timing	End of Month	Weekends & Nights
Success Metrics	Increase in subscription renewal rates	Increase in watch hours by ~ 10%
Ramp-up Milestones	Increase in DAU and 10-15% increase in watch hours	Increase in average FoR (frequency of return) and title completion rate
RTB	While giving access to the top upcoming shows and series, it creates a sense of FOMO + a hefty discount to complete the subscription	Everyone loves personalisation and especially when we curate something that is right in their alley, users are more inclined to give it a try.

Campaign	Campaign 3	Campaign 4
Context	At risk user with a continuous downward trend of show incompletion rate	Hibernating User who has becoming conscious of the time spent binge watching on Netflix
Goal	Get users to complete the show	Get users to continue using the app while they save up time as well
Offer	A weekly snippet of the overall story & upcoming twists on their current shows via emailer or whatsApp	Introducing watch hour clock - A active timer to map the no.of hours the user spends on Netflix. Netflix to give out prompts once the set timer is crossed.
Content/Pitch	Here is what you're misssing out on! We aren't going to give you big spoilers, don't worry but just a tad bit to keep you going! Click here to continue watching!	We'll help you save your time without missing out on your shows! Get, Set & Go.. binge without guilt. We'll notify you when you've crosssed your limit.
Channel	Push notification & WhatsApp	In-App & Before resuming
Frequency	Once in 4-5 Days	Everyday
Timing	In the night	Night or Weekdays
Success Metrics	% CTR converted to resume shows	Increase in brand trust & average return rate
Ramp-up Milestones	Increase in average watch hours after 15 Days	Sustained watch hours

Campaign	Campaign 5
Context	Users who have downgraded their subscription plan
Goal	Motivate users to opt for the original plan or upgrade from their basic plan.
Offer	One month free trial of Netflix Premium or Standard
Content/Pitch	Netflix content is best served at 1080HP! We want you to experience it, live it and thoroughly feel the gold standard of Netflix. Here is a free-trial Coupon code for you & 2 of your friends (Share karne se pyaar badtha hai) - CHILLKARO1 Open the app or website and start the binge fest!
Channel	In-App & WhatsApp
Frequency	Once 1 month with 2 follow ups
Timing	In the Weekends
Success Metrics	% Success of free trial activation
Ramp-up Milestones	- %CTR converted to App Install or web login - DAU increase after 30/60 days