November 4, 2003, 12:00 AM

Netflix retains more customers as it quickens site navigation

The way to keep customers coming back is to provide them with a comfortable shopping experience, says Netflix CEO Reed Hastings. So the online DVD rental service speeded up its navigation, helping to slash customer churn.

Kurt Peters

Executive Editor

 

The way to keep customers coming back is to provide them with a comfortable shopping experience, says Netflix Inc. CEO and co-founder Reed Hastings. By re-coding Netflix.com for faster navigation, the online DVD rental service helped to slash its customer churn to 5.2% in the third quarter from 7.2% a year ago, he says. “By speeding up our site, we increased the overall satisfaction of customers,” Hastings says.

Netflix improved its site navigation by reworking HTML coding with in-house staff, providing for faster page downloads. Hastings also cites other improvements that are keeping customers around longer, including its continuing build-out of distribution centers, now numbering more than 20, to provide for more overnight delivery.

Netflix posted Q3 revenue of $72 million, up 77% year-over-year.

 

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