Netflix Needs KPIs
Netflix is a fan favorite for all our binge-watching needs. They have been around since 1997 and try to always stay up to date with the entertainment their subscribers want to watch. They have changed the way people consume their favorite movies and TV shows. Gone are the days of running to Blockbuster to rent a movie for the weekend, now with the click of a button we have thousands of shows at our fingertips. Netflix has changed the streaming game and as users we now expect nothing less.
The company’s main objective is to “entertain the world.” They aim to give their subscribers, no matter where they are, the best TV shows, movies, and documentaries. To accomplish this, they must set forward a list of SMART goals to accomplish their objective. A SMART goal is specific, measurable, attainable, relevant, and timely. It helps in goal setting to make sure the goal remains clear and reachable. An example for Netflix could be…
S- Increase the number of monthly subscribers
M- By 10%
A- By an increase in advertisements on Instagram
R- Because it is important to gain the attention of the younger audience
T- In the next year
One of the main KPI’s Netflix needs to pay close attention to with their SMART goal in mind is Return on Ads Spent (ROAS). This is a very important metric to track because if Netflix is putting money into advertising, they want to make sure they are seeing a return on that. This is something they will have to track thought-out the campaign. If the ads they are posting are not seeing a return on investment than it is either not reaching the correct audience or the content is not resonating with the audience, either way something needs to be adjusted. Continually tracking the ROAS throughout the entire campaign ensures the money on ads are being well spent and helping to work towards the goal.
Another very important KPI for Netflix to be tracking is Conversion Rate. This can be expressed as a precent by dividing the number of conversions by the number of clicks. This is again very important to continually monitor. If Netflix is not getting more monthly subscribers, they are not putting the content in front of the correct audience, or the content isn’t quite right, and it is not getting the attention of the target audience. Once you know what’s working it is easy to tweak the content and ads for a higher ROAS and ROI in general.
Social media can help Netflix achieve their SMART goal by allowing them to put the content in the proper space. The goal wants to use Instagram to post more advertisements on social media. They have chosen Instagram because they want to try to reach a younger audience with this campaign to gain more subscribers. Instagram is a great place to reach that younger demographic and by posting the correct content on this platform Netflix will have a better chance at achieve their SMART goal.
From the social media efforts Netflix should hope to see an increase in the number of subscribers. By establishing a good SMART goal and setting up meaningful KPI’s, Netflix should be able to work towards using social media to increase their subscribers by 10% in the next year. By tracking KPI’s Netflix will be able to tell if their content is effective in helping them work towards their goals and objectives. Social media plays a big part in today’s world and companies, like Netflix, really need to understand how to use it as a tool to their advantage. For example, Netflix can’t post just anything and hope to achieve their goal. They have to make sure the content is appropriate, the keywords are correct, and the audience is who they want. It is also important to choose the correct KPI’s to monitor, and it is important to change which ones are monitored in relevance to the goal. During this campaign conversion rate and ROAS is very important for success while the number of likes is not important to the goal, where on a different campaign likes may play a bigger part. With their SMART goal in place and the appropriate KPI’s to monitor success, Netflix can continue to aim for their objective of “entertaining the world.”