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.