Member-only story
A UX Lesson: Netflix and the importance of a clear value proposition
A business without a clear value proposition brings frustration for all involved
New businesses are always welcome to society. They play a key role in the economy bringing diversification and supplying people’s needs.
However, it's not so uncommon for entrepreneurs to bear risks for some kind of business that have no reason to exist. Either because the business does not bring any real value or because there is great competitiveness and without the "something else", there is no prominence.
According to Simon Kutcher and Partners, 72% of all new products flop.
When we focus on making the idea seem to be good enough to convince others to accept it, we are maximizing the risk of failure. Improving an idea without testing doesn’t make you go anywhere.
It’s like putting makeup in something to pretend it’s visually attractive while people still haven’t emitted their opinions.
We need to understand people's necessities and test our hypothesis to make a useful tool.
Netflix's Value Proposition and why it massacred the video stores
A good example to make the concept of Value Proposition clear is the product Netflix. Streaming services became very common in our lives. It makes it easy to understand the benefits we get using them.
What are the benefits Netflix offers us?
- Easy leisure.
- Movies to watch at home without the necessity to go somewhere else to get them.
- Watch as many times as we want.
- No worry about returning the videotape or DVD in a limited time.
Why before the streaming services, video stores were so popular and now they are not anymore? Because people want to have a relaxing time watching movies or some TV show.
Users' objectives were not to leave home and go to a store to select some film among thousand titles on a crowded shelf. Checking one by one. After choosing, the user would have a limited time to watch what was selected, and then, it would become a…
