The customer is always right; or is he?
Over the summer, Netflix announced it would be raising prices. The popular $9.99/month plan that included both snail mail DVDs and online streaming would be separated into two separate services, each charging $7.99/mo.
Naturally customers weren’t happy.
In an effort to make things right, the company issued an apology for poor communication and announced it would turn the DVDs-by-mail division into its own company called Qwikster. The announcement did not include returning to the former price.
Tweeters across the internet mocked the name, and really, the whole idea. Earlier this week, in an unexpected move, Netflix announced it was killing Qwickster, but the price hike remained in effect. According to SNL, it went something like this:
Where have we seen this before? In a previous article we contrasted The Gap and Apple. The Gap rolled out a new logo only to quickly pull it back following a public backlash. Apple, on the other hand, kept the iPad name despite its ridicule. What made the difference?
It always comes back to a strong brand.
Netflix rushed out Qwikster. The name, the logo, the tagline...the whole identity. It's really, really hard on a brand when it doesn't have a sturdy foundation. There's nothing to base decisions on, so when they have to be made on a whim, mistakes happen. Conversely, a well-developed brand aligns its goals with customer demands, but it doesn't let customers determine its future direction. Good brands lead, not follow. They act as a representative for the customer, not a scapegoat. They innovate solutions for problems customers don't even have yet. They reassure customers when they are uncertain. With all these responsibilities, no wonder a brand must develop its own identity first, then have a strategy for protecting it.