On Monday, the company revealed to investors the loss of 800,000 subscribers over the course of an already dismal quarter that involved a widely unpopular price increase and a failed plan to split its DVD and streaming services into two. Not surprisingly, stocks plummeted.

So now is an opportune time for those of us in the industry to consider, what can Netflix do and what can we learn from the situation? Here I’ve laid out four best practices for PR and marketing professionals to consider when strategizing on how to win back customer loyalty.

1. Damage control. With the damage done, Netflix must embark on a major marketing campaign to both ensure the retention of current customers and win back those that have been lost. Yes, customer acquisition will be important, but it is the current and lost subscribers that will prove most beneficial to the company’s bottom line in the months to come. When experiencing a similar situation, focus marketing efforts on stopping the bleeding, which means getting back into the heart of your customers. Re-address consumer needs, if it has seemed to suffer, and aim to deliver them more effectively than the competition. This can be done  with a new campaign or with offering ways to save on current products, but you need to do something that will entice the consumer to come back
2. Re-build the brand image. When we think Netflix, we think red envelopes and premium content. Yet both of these associations have taken a beating in the past year with the Quickster snafu and termination of the Starz contract. What does the brand mean now, and what is the emotional connection to the consumer?  Come up with a new way to draw the user in. It could be packaging technology in a new, more convenient way or providing users with premium content. But whatever you do, make sure people will enjoy the upgrade and that you publicize it as much as possible. That way they see your brand as offering more for the money, rather than cutting services
3. Look forward, not backward. We all make mistakes. Yes, that means even successful businesses and entrepreneurs like Netflix and Reed Hastings. While Hastings’ apologies have largely fallen on an unsympathetic audience, the company must stop side-stepping and commit itself 100% towards shaping the future of media consumption. That means also changing the conversation. When in a similar situation, stop focusing on what went wrong, and move towards changing the conversation so people will think of something new if they think of your damaged brand
4. Encourage the bigger picture. We are moving towards a streaming culture. While Netflix’s price hikes are an iffy move, I do support the company’s dedication to invest more in streaming. I think that in the end, we will all be happier with more choices when it comes to the content we crave, available with the technology we want. That means streaming directly to our TVs, iPads and laptops, whenever and wherever we are. Find the positive in the current situation, and make sure people know that these will improve services. That way customers can understand your company’s somewhat questionable move

Have you ever had to deal with a PR/marketing crisis? What did you do to change the conversation?

Until last October, when a mysterious package from the Knob Creek distillery arrived at our doorstep…

Enclosed was a letter that said “Thanks for nothing” and informed me that high demand for this delicious whiskey had caused a drought, and the next batch wouldn’t be ready until the following November. Also enclosed was a tee-shirt that I could wear with pride to let everyone know that I had survived the drought. The letter read:

Dear Knob Creek Lover,
It seems you’ve helped cause a bit of a “situation” here at the distillery. See, because you, and many others like you, have been such loyal consumers, we’ve temporarily run out of Knob Creek Bourbon. And for that you deserve a huge thanks.
With that said, it’s quite possible that you might not be able to find us in our usual places for a bit. Should this happen, take a deep breath and keep in mind that our next batch will be fully matured and ready to go this November (we’d bottle it now to boost supply, but then it wouldn’t be aged a full 9 years and it wouldn’t really be Knob Creek). And once you’ve weathered the storm, be sure to proudly sport this t-shirt commemorating this historic event. Now, hang in there and cherish every drop of Knob Creek like it’s the last, because, well, it could be. Until November anyway.

Cheers,
Your friends at Knob Creek

P.S. If you can’t find a bottle of Knob Creek anywhere, visit knobcreek.com and find out which locations (if any) in your area are lucky enough to have a few bottles left on their shelves.

Read more about the campaign here.

The next time I was out buying a bottle of wine for a party, I grabbed a few bottles of Knob Creek. One for me and a few for friends that were fans – I certainly didn’t want of us to have to have to suffer during the drought. As I paid for more Knob Creek than I’d ever normally purchase at one time, I thought to myself “you got me Knob Creek.”

Sometimes marketing campaigns miss the mark, and sometimes a company sends me ridiculous crap that I don’t want or understand. But when I see a company that understands how to speak to its audience, uses humor as a hook and motivates me to make a purchase; I consider it to be a marketing success story. I can truly appreciate the efforts to create a following or movement for a brand based on a quirky and humorous concept (or maybe we Knob Creek drinkers are actually a bunch of nerds that love a free tee-shirt).

A few weeks ago, I got another mysterious package in the mail. This time it contained a letter letting me know (with relief) that the drought had officially ended. They also included a commemorative bottle bung (which I’ve proudly displayed on my bookcase).

Kudos to Knob Creek on an interesting and well-executed marketing campaign, and cheers to all drought survivors!