A feedback loop is a mechanism that helps a system self-regulate and adapt by using feedback. For brands, it begins by receiving its user’s input, interpreting and incorporating that feedback, responding with the desired adjustment, and then repeating the process with input of the responded information.
More often the feedback loop is a short-lived or sporadic effort. A survey here, a focus group there. Or they are questionnaires not based on user feedback, but instead are company centric. However, short-lived feedback loops result in short-lived success. The reality is those kinds of efforts can hardly be called feedback loops.
The Transformational Effect of Real Feedback Loops
Feedback loops pave the way to transforming a brand. Through a feedback loop, brands can find new and unexpected terrain. They can become something markedly different. Most importantly they create an authentically original brand identity that the competition can’t possibly emulate. After all, copying another brand is hardly original.
Netflix
Netflix is ultimate story of transformation and a mind-blowing success that stemmed from a self-sustaining feedback loop.
Netflix didn’t start out with a brand positioning of “a provider of unequalled, personalized, on demand original content”. They began as a disruptive concept in the video rental space by providing mail delivery DVD rentals. The arrival of the internet led to Netflix’s shift to a powerful continuous algorithm-driven digital feedback loop. In doing so, each cycle of feedback input, feedback response and feedback input led Netflix, step by step, to their unexpected transformation into a powerhouse of originality.
O.The Path to Jaw-Dropping Growth
For most content providers, the internet revolutionized the way people could consume and access a vast amount content. But Netflix saw that the opportunity didn’t stop there. Being that Netflix relied on their feedback loop for direction and tailored customer journeys, they saw how they could use the internet to create a deeper, more meaningful feedback loop.
This expanded ability allowed Netflix to discover that viewers often let episodes pile up so they could sit down and binge on multiple episodes and favorite ice cream. What did Netflix do? They began streaming an entire season of episodes that could be downloaded all at once. Netflix also expanded their feedback loop to encompass a diverse range of users by age, gender, country, language, economic status, geographic location, etc. to equally satisfy each particular desire for specific content. Netflix became one of the few companies with negligible gaps between different markets which resulted in an unimaginable growth in their number of subscribers.
Elasticity-Driven Originality
Netflix’s was highly elastic. This allowed them to shift direction, quickly adapt to changing market dynamics, and evolve into the behemoth it is today. Netflix’s boldest (and riskiest) move was to start creating original content. Netflix learned that a significant number of search box entries were for movies reviewed as “fresh and original” as well as searches for actors and directors known for making those kinds of movies. These cues from viewer searches led Netflix to begin creating Netflix Originals.
Stay In the Loop
Through their ongoing use of a feedback loop Netflix continued to shift, adapt, and push the boundaries of their platform. They began coming out with more content that featured women in powerful lead roles. They started offering movies and shows from and for other countries with content in over 60 languages. Ongoing communication further cemented Netflix’s place in viewer centric on demand streaming by serving up video games, famous stand-up comedian acts, and high production value original content that raked in the awards and nomination for Emmys, Golden Globes, Oscars, Screen Actor Guild, Sundance, Peabody, and PETA.
Ask and Ye Shall Receive
Ask people for their feedback and you’ll get what you asked for. Act on their feedback and your customers will receive what they asked for. You’ll have important information to guide decisions. More importantly, your users will know they are heard and that they mean something to you. When both keep giving, both keep receiving. If you want your brand to attain an alchemy with people, it can’t happen without that kind of relationship.
Currently Netflix has over 270 million paid subscribers. Over half of them are with Netflix for their original content. As a result, Netflix reported a revenue of over $9.4 billion in the first quarter of 2024. What’s next for Netflix? Their customers are sure to let them know.