Be Netflix, not Blockbuster (all about brand relevance)

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In 2007, Netflix made a massive business pivot.

They introduced a new online streaming service, a notable change from their core DVD-by-mail offer.

It was risky, but it paid off.

By 2009, Netflix streams overtook DVD shipments as their most popular service.

Making the shift from physical to online was an expert move, because soon enough, Netflix was the largest source of streaming traffic, taking up to 30% of all internet traffic (that literally blows my mind) with their streaming services.

Meanwhile, their biggest competitor Blockbuster was filing for bankruptcy.

Why did this happen?

Because people renting movies at that time wanted to pick a movie from their couch, not from a store down the street.

Netflix understood their customers’ needs, and they offered a relevant solution that brought a clear benefit to their customer base.

Blockbuster failed to adapt, believing that their loyal audience of fans would continue to be forever loyal.

What they didn’t understand was that customers tend to offer their loyalty to brands who understand and accommodate their preferences.

Let’s be honest, we all want to feel like our favorite brands “get” us, right?

We want to know that they understand our needs, our struggles, and our desires.

And when we find a brand that does understand, we’re hooked! We become fans.

I’d like to introduce you to two important concepts that will help you begin to create loyal, excited fans of your brand.

The first concept I want to introduce you to is Brand Relevance.

Relevance is essentially just how important and meaningful a brand is to its customers.

Relevance is accomplished through understanding & meeting customer needs, maintaining positive customer experiences, and staying connected & adaptable through shifts in consumer behavior.

Netflix understood their audience and adapted their business model in order to offer a relevant service that met their customers’ needs.

They were still selling movie rentals, just in a new way. Their core essence remained. But they were willing to change so that they could offer the best experience possible for their audience.

Blockbuster failed to adapt, and their customer experience suffered irreparably because of the disconnect with their audience.

As business owners, it is our job to ensure we are remaining aware and open to the needs of our audience if we want to build a business that stands the test of time.

If we had no interest in longevity, we could simply market any offer we want and allow the people who are interested to purchase and become a customer.

Blockbuster offered movie rentals and a bunch of people paid them for it.

Simple.

But since you’re here, I know that you’re interested in much more than a one & done business.

You want to build something that lasts, show up every day doing things that excite you, and attract an audience you feel connected to.

You and I want longevity, which requires us to adapt and react to the inevitable shifts our audience will go through.

We must remain relevant. Important and meaningful to our customers.

When we achieve relevance, our audience should feel that engaging with our brand benefits them in some way, which makes them excited to come back for more.

A benefit doesn’t always need to be explicit or measurable. It can be emotional, social, or mental.

There are plenty of ways you can offer a benefit to your audience. Defining your Controlling Idea will help with that!

But whatever the benefit is, it should aim to fill a need your audience actually has, in a way that makes you the best option for them right now.

And what often happens when we remain acutely in tune with what our audience needs and adapt our business to remain relevant to them, is that people may start to wonder “omg, how did they know this is exactly what I needed?”

Relevance is all about empathy, awareness, and generously showing up for the people who choose to show up for us.

Now, I know I mentioned there were two concepts I wanted to introduce. But obviously this email is getting a little long, so I’ll save part 2 for next week!

For now, I want to leave you with this incredibly moving and impactful TEDx Talk by Nina Simon, a museum director who brought the Santa Cruz art museum from thousands of dollars in debt, to over a million in profit simply by asking the question “how can we become more relevant to the people in front of us?”

I encourage you to watch it (it’s only 12 minutes) and think about ways you could create your own “hot pink flyer” 😊