CMR 1: The Netflix Dilemma

Ep 1: The “Netflix” Dilemma

 


 

I’ve got a question for you…

If Netflix only gave you ONE movie/tv show to select from at a time, and you had a two buttons One that said “yes, watch now”, the other button said “no thanks, next choice”…

Do you think that Netflix would be MORE…. or…. LESS…. Successful?

I’ve been thinking about this topic for quite some time now and I’m excited to finally share it with you guys.

I’ve got a buddy, who I consider to be a really good friend that I met back in College.

His name is Stephen Larsen, If you haven’t already heard of him, go check his out Podcast called “Sales Funnel Radio” ASAP.

He delivers insanely valuable content weekly and in fact, he is who inspired me to start Podcasting.

When Stephen started podcasting about a year ago, I was honored to be the first person he interviewed for his show.

He interview me about a new business venture I had started with two other friends around that that time, we were testing our idea with a “MPV” (“Minimum Viable Product”).

We saw immediate success.

We had over 50,000 unique visitors in the first month.

$8000+ in sales in the first 24 hours of launching, all without spending a penny on advertising….

My [Then] business partners and I thought we had proven our idea and that this was going to be something that we could replicate again and again…

so we spent the next 2 months improving our website, the quality of the pictures, and listed over 500 products from various suppliers.

Our goal was to make our company appear as a massive brand that had emerged to become a major competitor in the Fashion Clothing industry.

I literally coded one of the most technical websites I’ve ever made with advanced searching capabilities to help the visitor find exactly what they were looking for.

We finally got it all ready for the Re-Launch after working on it 15 hours a day, 6 days a week, for 8 weeks…

The site looked amazing! It was on par with top brands in the industry…

With much preparation of the big Re-Launch with the expectation to double, even triple our sales from our initial test MVP launch….

We got ready for the traffic to flood in like the first time,

We made sure products could be sent out in a smooth and timely manner, and Guess what…

It FAILED!

It flopped harder than any soccer player trying to get attention from the referees…

For several weeks we waited and tried many different ways to get visitors to the site; However, after checking our analytics the amount of traffic wasn’t our problem…

It wasn’t our bounce rate either… Our average time spent on the site of 11 minutes… that’s close to the average amount of time people spend on Facebook in 2015…

Isn’t that insane?

I mean Facebook! You know ‘the social interacting website that enables personal indulgence for entertainment and snooping on old high-school/college friends’.

It was hard trying to figure out what happened?

I followed all the signs that big business blog’s mention to have as “key indicators for success”.

After closely examining our analytics for several days, the stats showed that our visitors would go through just about every single page on our site, looking at over 500 products we had to offer… yet… our sales were very low day in and day out…

This was such a mystery at the time…

We had targeted the exact audience for our products..

We had social media influencers sending traffic, we lowered our prices below any competitor out there…

We had an amazing website with incredible search functionalities….

It wasn’t after putting that business venture on the back-burning that I realized what our problem was…

We had too many options and choices for our visitors to decide on!

The choice they eventually decided… was to leave our site because it was too hard to pick which item(s) they wanted.

Sound like a familiar problem?

Have you ever gone to watch a film from any movie streaming company, whether it’s on Netflix, Amazon, Hulu, etc… You sit there going through all the different movie options, until minutes (if not hours) pass by, and you still haven’t selected a movie to watch.

If you finally snap to it, you might be brave enough to finally pick something new to watch, however, I’m sure there are others out there that are just like me.

I end up choosing a tv show that we’ve already watched before because I know I’ll enjoy it, heck it’s been bad enough at times, that I’ve even searched long enough that the time I gave myself for entertainment is done, so I’ve turned off the tv to get back to working.

Has anyone else done this before?

Have you ever just felt that there are so many choices to decide on that you end up deciding not to get anything?

I’ve coined the term “The Netflix Dilemma” for this issue.

[Us] We have a difficult time selecting products because when there are too many to choose from.

Example:

  • 2 products side by side can see the clear difference.
  • 100 products side by side lowers the standard deviation between your products.

when businesses understand this dilemma they can hone in and learn more about sales funnel which will enable focus on their offerings which can help their potential customers see the value in their products.

In your business, take yourself through your own customer acquisition process by looking at your own website and advertisements.

Ask yourself if you would buy from your site, or if you would browse through a bunch of pages, or would you leave your website after a few seconds.

Are you showing your customers everything you have to offer upfront?

Ask yourself if your website is a one-stop-shop for everyone, or are you targeting specific people with specific problems?

Help your customer make the decision to easier to take out their credit cards by only giving them a product/service that is suited for a specific purpose.

It may be scary at first to narrow down one offer at a time, but with the amount of online competition out there, you have to rise above your competition and do things differently.

If this is your business, this may be the exact issue that’s preventing your visitors into becoming your customers.

That wraps up today’s show,

Until next time…. keep hustlin’, keep improving, & most of all Keep Converting

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