Be a clear communicator
In early 2011, as a Netflix subscriber, you could have DVDs delivered to your home as well as stream them on your TV.
Later that same year, the company decided to split itself in two.
“Netflix” would continue to send you DVDs, but the streaming service would now be known as “Qwikster.”
If you wished to make use of both services, you now had to deal with two operate companies.
This meant two separate sign-up processes and two different payment systems.
Netflix proudly announced this news in a company blog post.
Unsurprisingly, the rollout was a disaster.
It was confusing for existing customers not least the name “Qwikster” which bore no resemblance to Netflix or suggested it had anything to do with streaming films.
To make matters worse, if they tried to contact support via @qwikster on twitter, they soon found themselves on the site of a marijuana enthusiast who owned the name!
Netflix lost 800,000 subscribers and their stock price plummeted more than 25 percent.
In response, the CEO Reed Hastings finally saw the light and killed Qwikster altogether. He want as far to admit he had assumed that the idea had been tested with customer focus groups.
It hadn’t.
Hastings had been guilty of overconfidence, poor internal communication and of moving too quickly.
If you’re keen to avoid similar issues within your own company then it’s worth considering the following:
Think carefully about ‘what’ it is you’re communicating, ‘why’ you’re communicating it, and to ‘who’ your message is targeted.
Use simple language and remove any jargon from your communication.
Be as concise as possible. The shorter the better.
Encourage others to challenge your thinking. Is there a better way of communicating your argument?
Learn to listen. To communicate effectively, first listen to what others have to say.
As a wise person once said, “The single biggest problem in communication is the illusion that it has taken place.”
