Friday, July 15, 2011

The Challenge of Defining Value: "It's $ 6 a month. It's a Latte."

To Steve Swasey, Netflix vice president of corporate communications, the $6 increase facing existing customers is an economic decision. I agree that Netflix, in his words "...went from being an ultra-extremely good value to an extremely good value," with the announcement of an increase for existing customers to continue receiving DVDs on-demand and by mail. His response, however, misses the emotional connection of many early-adopters who've been singing the praises of Netflix over the last ten years. These subscribers have generated an immeasurable amount of free publicity and, more valuable, personal referrals to the Netflix brand. Was an economic model that grandfathered these early-adopters or broke it to them more gently even on the table? Perhaps it would have averted the movement to drop the service altogether inspiring articles like, The Best Netflix Alternatives.

The Netflix saga underscores the last word in ACC's journey to define value in professional services, they don't call it the ACC Value CHALLENGE because of the way it rolls of the tongue.