Design a shopping experience for Netflix.
Netflix
Pinterest- Corey Amorin
clarifying questions
- why are we building this? is there a particular reason we are building this or is there a metric/group of metrics that shall be activated that eventually drives an organisational metric or is it just an attempt of creating another super app?
- am i safe to assume that i am a part of the team that can actually drive the marketplace experience? and by shopping, we mean a marketplace like an amazon?
- can i safely set the overarching organisational goal, then the individual team goals for success evaluation for a duration of about 2 quarters?
methodical approach
Netflix is a fairly mature market leading product in most countries with netflix original content, third party content, individual content et al. while, it already has a solid revenue stream and a subscription plan localised according to the markets it operates in, i can only imagine that the reason for wanting to design a shopping experience/marketplace experience can be to pull the engagement and revenue levers.
assumption
Overarching business goal: Drive the engagement and revenue metrics
Team Objective: Build a robust marketplace experience
Key Result:
Increase engagement metric by x% Increase revenue metric by y%
Customer segments/journeys
considering a few numbers for ease of calculation
assuming netflix has 200mn users in the US, but at a converion rate of 50%, 100mn are paying customers. That leaves netflix with 100mn dormant users to focus on which is the cohort size.
Dividing this 100mn cohort further on the basis of customer segments-
- 18 – 30 years of age (power users)
- 30 – 50 years of age (occasional users)
assuming 80 percent are power users, customer segment now boils down to 80 mn netflix users for retargeting/onboarding
customer journey
for web watchers: open netflix —-> login —> landing page —> recommendation basis prior watching experience or other search algorithms —> click on whatever you want to watch —> click on watch ——> start streaming
web watchers maybe 50% of the customer segment. Therefore, customer segment size now 40mn. of these 40mn, about 20 percent are fanatic marvel, dc, amc, hbo franchise watchers or fanatics. this has created cult like viewing habits around series/franchise viewers for content such as friends, rocky balboa/creed series, breaking bad/better call saul series, dc/marvel franchisees et. al
narrowing down cohort to further of 8mn as the focus targetted audience.
therefore target customer segment is 18 to 30 years of fanatic/franchisee/series viewers that make up roughly 10mn (assumed figures) of netflix’s viewership.
target customer pain points
- fanatic viewers are avid merchandise collectors. there are not very many franchisee/series merchandise marketplaces out there for fanatic purchases
- its generally difficult for one cult viewer to track another one
- sitcom actors are standup comedians or artists with several other talents. they perform at comic con festivals, live stand up shows, concerts etc. but viewers dont quite get a hold of tickets for live viewership of these events
Solutions
- providing a one-stop shop solution for avid dc/marvel or other such franchisee/series to be able to shop for merchandise
- providing a bidding option for viewers to be able to put their prized souvenirs up for auction which netflix can charge a percentage and in turn helps fans connect with one another
- providing a marketplace where tickets are made available of events such as comic con etc where viewers’ favorite artists meet and greet their fans
Q1 Rollout/launch plan
Retargeting by sending email campaigns to dormant users, a major percentage of which are web users. Launch in the US to begin with.
KPIs/metrics
Q1 engagement metric
- average no. of items/souvenirs uploaded for bidding per user
- Average time spent on platform
- percentage of dormant users returning to netflix
Q1 revenue metric
- average revenue per user
- GMV
- no. of merchandise categories made available on the platform basis films/series segmentation
- average basket size
the list of metrics is endless, but i restricted it to these many for now.
recommendation:
I’d also like to conduct an A/B test around a bundled subscription price wherein whether one bundled price can be launched for all marketplace features regardless on the price of the items on the platform