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Retailers can learn from Netflix’s customer service woes

Last summer, online and mail-order video company Netflix angered customers with new pricing and management plans, serving as an example for retailers' store operations.

In July, the company announced it would be raising prices by nearly 60 percent for users who access videos both online and through mail, Bloomberg notes. Additionally, the company was attempting to force customers who wished to receive DVDs via mail only to sign up with its new brand Qwikster.

As a result, the company lost 800,000 customers in the third quarter of last year. Reflecting on the damage the plan was having on its reputation and revenue, Netflix backed away from the plan. In the fourth quarter, it reversed its fortunes by adding 610,000 customers, according to Bloomberg.

"We are the first to admit we did have some missteps," Steve Swasey, a spokesperson for Netflix, said in an interview with the news source. "It's ours to gain back." Part of this new plan is allowing consumers to sign up for the $7.99 per month DVD-only service.

Retailers looking to avoid the fate of Netflix may want to consider their consumers in their plans, possibly through soliciting their desires and concerns before any changes are made.




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Countries

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Customers

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Stores

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130

Countries

9000

Customers

54000

Stores

159000

Points of Sale

130

Countries

9000

Customers

54000

Stores

159000

Points of Sale