Tue, 19 Jul 2022 08:57:10 GMT
Netflix has seen its popularity slump by 20%, and slipped 20 places in the rankings from second place to 22nd in the annual MISSION Brand Bonding Index (MBBI), which includes a YouGov survey of 3,000 respondents, over 61,000 data points and 12 source categories.
The decline comes as Netflix tries to counter falling subscribers with price increases and plans to introduce advertising to the service.
Key findings include:
• Only 19% of respondents think Netflix output is very good quality
• Positive sentiment for the brand is low at 11%
• Only 18% think Netflix is customer focused
• Less than half (49%) now think it offers good value
Netflix has recently said it expects to lose another two million subscribers in the three months to July, after dropping by 200,000 earlier this year, marking the first time it has lost subscribers in over 10 years. The company responded by raising the price across all its subscription tiers, cracking down on password sharing and planning to introduce advertising for some viewers.
Increased competition from streaming services including Amazon’s Prime Video, Disney Plus and Paramount Plus is taking its toll and subscribers are also rethinking their spending as the cost-of-living crisis bites into discretionary spending.
Brand perceptions have a direct impact on the bottom line. Consumer sentiment towards a brand strongly influences purchasing decisions and affects loyalty. The fall in subscribers sparked an investor sell-off, with the company’s share price plunging 35% in one day. Netflix has also since announced plans to cut 450 jobs.
Eliot Sykes, Head of Consultancy at krow.x, part of The MISSION Group plc, commented: “Netflix was the second most popular brand in our index when we launched the MBBI, and its precipitous fall shows exactly how far changing consumer sentiment can damage a brand and have serious financial implications for its future. Brand behaviours, large and small, can translate into measurable, real-world results. This can be positive or negative and there is always the potential to reverse setbacks with creative customer engagement.
“Netflix faces the challenge of winning back the hearts of consumers – particularly in these challenging times where disposable income is falling at a record rate and consumers are forced to be particular with where they spend cash. Competition is also increasing and perceptions around quality, value for money and customer focus are going to be critical to future success.”
There is a myriad of opportunities for brand bonding and measuring brand bonds requires a holistic analysis of how the multitude of factors interact to generate a strong connection. Brand bonds are created through engaging both the heart and the head – excluding either of these elements weakens the ties that underpin the relationship. Encompassing both and the interplay between them is critical to effective measurement.
The MBBI is the most comprehensive data set of any brand index available, with a bespoke algorithm rating 158 global brands, from global corporates to UK household names, by over 330 key metrics. The index includes 61,709 data points comprised of a mix of open, objective data - such as SEO ranking, website analysis and social media stats - and data gathered using BrandWatch and YouGov, across 12 source categories, from dependability and preference to CX.
MISSION launched the MBBI to give companies immediate bespoke insight into their real brand power and actionable intelligence on comparison with competitors. Brands can track their strengths and weaknesses with comprehensive analytics, to measure impact and accurately target areas of challenge and opportunity. The Index measures a broad range of categories, including awareness, dependency, ESG, preference and purpose, utilising the most comprehensive data set of any brand index available and a bespoke algorithm.
The MBBI covers a broad range of sectors including: DIY, Fashion, Grocery, Home, Online, Online Retail, Retail, Technology, Utilities, Financial Services and Personal Care. The MBBI is available at: mbbi.themission.co.ukview more - Creativekrow London, Tue, 19 Jul 2022 08:57:10 GMT