Flag

We stand with Ukraine and our team members from Ukraine. Here are ways you can help

Get exclusive access to thought-provoking articles, bonus podcast content, and cutting-edge whitepapers. Become a member of the UX Magazine community today!

Home ›› Design ›› How Netflix uses psychology to perfect their customer experience

How Netflix uses psychology to perfect their customer experience

by Jennifer Clinehens
4 min read
Share this post on
Tweet
Share
Post
Share
Email
Print

Save

Netflix_Slider

Decoding the science behind the features that keep you binging

“If the Starbucks secret is a smile when you get your latte, [Netflix’s secret] is that the Web site adapts to the individual’s taste.”

– Reed Hastings

If there’s a company that’s synonymous with seamless customer experience, it’s Netflix. It has become the defacto entertainment source for many. So much so that 15% of the world’s web traffic goes to Netflix.

But when your experience is industry-leading, how do you evolve it without disappointing customers?

The answer lies in experimentation, built on proven psychological principles.

And because Netflix is a subscription service, you can quickly discover what’s working. Just observe how many customers cancel their service in response to your experiment and optimize from there.

Reciprocity is a social norm of responding to a positive action with another positive action. It’s why you feel indebted when someone does you a favor.

Made famous by Robert Cialdini in his book “Influence: The Psychology of Persuasion,” Reciprocity can be summed by the saying, “You‘ve got to give to get.”

How does Netflix apply the Reciprocity Principle?

Netflix asked their customer base, “ What one thing would you like to know more about before signing up for Netflix”? The most popular answer (46% of responses) was “knowing all of the movies and TV shows available.”

In response, Netflix experimented with showing customers available content on the home page. But their experiment revealed something interesting. Showing customers too much of the content was distracting. Many of them browsed but never signed up.

Failed Experiment: Let customers browse Netflix’s complete catalog

Netflix

Source: Netflix via awwwards. on YouTube

So Netflix redesigned their experiment. Designers still used the Reciprocity Principle, but this time they used an image that hinted at an extensive catalog. But they didn’t let customers browse the whole thing.

Giving people a sneak peek — but not the total view — made customers more likely to sign up for a free streaming trial.

Winning Experiment: Give customers a sneak peek of the content

Netflix

Source: Netflix via NirandFar.com

Cocktail Party Effect

Photo by Scott Warman on Unsplash

The Cocktail Party Effect states that people like to focus on information that’s relevant to them. But the Cocktail Party Effect also proves that if we go deeper, relevant content can drive incredible results.

In a recent study, Accenture found three personalization tactics that have a direct effect on buying behavior:

  • Know my name: 56% of customers would rather buy from a retailer that recognizes them by name.
  • Know my past: 65% of customers prefer to buy from a retailer who “knows their purchase history.”
  • Know what I want: 58% of customers prefer to buy from a retailer that recommends options based on their past purchases.

How to apply the Cocktail Party Effect to your experience

Netflix describes itself as “customer-obsessed” and strives to deliver a totally personalized experience. Their “Because you watched…” category is a prime example of this philosophy in action.

More than 80% of Netflix shows customers watched in the last two years have been as a direct result of Netflix’s recommendation engine. Not someone searching for a specific piece of content.

Digital Initiative

 

Idleness Aversion

Recent studies into psychology, happiness, and customer experience have uncovered a principle called “Idleness Aversion.” It states that people are happier when they are busier, even if they’re forced to be busy.

How to apply Idleness Aversion to your experience

To keep people busy, give them information to engage with — animation, gamification, and visuals are ideal.

Netflix applies Idleness Aversion in an interesting way. Their experience forces you to watch trailers that auto-play when you dwell on the title.

This feature is a source of frustration for many customers, but the benefits of Idleness Aversion have clearly outweighed the costs for Netflix.

2009 Netflix

In the past decade, the Netflix site has undergone an incredible transformation. These changes and optimization were made possible because of a design culture built on the principles of “test and learn.”

Navin Iyengar, Lead Product Designer, described the Netflix testing philosophy this way (source):

A lot of the UX ideas we have are A/B tested, so we can understand what effect they have on member acquisition or satisfaction around the world.

The results of those experiments help keep us focused on the most important things to work on.

At the end of the day, we believe A/B testing yields the most reliable information for us to understand what people want out of our service.

It’s clear that a culture of experimentation is critical for psychological principles to be tested and optimized.

There’s no magic button you can press to make your brand experiment-driven. It’s a tough process that requires designers to work closely with marketing, product, IT, operations, and other digital teams.

But, if implemented correctly, the potential upside is huge. So instead of asking if you should focus on testing, the better question is, “How can we prioritize it?”

post authorJennifer Clinehens

Jennifer Clinehens
I’m an evidence-based marketer who combines art and science to create impactful customer relationships with brands. Writing where decisions, design, and behavioral science meet. Author, CX That Sings and Choice Hacking.

Tweet
Share
Post
Share
Email
Print

Related Articles

Consistency in UI/UX builds trust and efficiency — without it, users feel lost. Learn how top brands maintain it and how AI can help.

Article by Rodolpho Henrique
Consistency in UI/UX Design: The Key to User Satisfaction
  • The article examines the role of consistency in UI/UX design for user trust and efficiency.
  • It showcases visual, functional, and interaction consistency in creating seamless experiences.
  • The piece warns about the negative effects of inconsistency, including confusion and frustration.
  • It promotes the use of AI and design systems to ensure consistency across digital platforms.
Share:Consistency in UI/UX Design: The Key to User Satisfaction
4 min read

If Mobile-First thinking has revolutionized the UX Design industry, AI-First is promising to be an even more spectacular kick in the pants.

Article by Greg Nudelman
The Rise of AI-First Products
  • The article explores how AI-powered operating systems are changing user interactions.
  • It covers AI-driven personalization, automation, and adaptive interfaces.
  • The piece discusses challenges like privacy, over-reliance on AI, and user control.
  • It highlights opportunities to design more intuitive and human-centered AI experiences.
Share:The Rise of AI-First Products
11 min read

AI is reshaping UX, and Figma may be sinking. As AI-driven systems minimize UI, traditional design roles must evolve — or risk becoming obsolete. Are you ready to adapt?

Article by Greg Nudelman
AI Is Flipping UX Upside Down: How to Keep Your UX Job, and Why Figma is a Titanic (It’s not for the Reasons You Think)
  • The article explores the fundamental shift in UX as AI-first systems minimize the role of UI, rendering traditional design tools like Figma increasingly obsolete.
  • It introduces the “Iceberg UX Model,” illustrating how modern AI-driven interfaces prioritize functionality and automation over visual design.
  • The piece argues that UX professionals must shift their focus from UI aesthetics to AI-driven user experience, emphasizing use case validation, AI model integration, and data-informed decision-making.
  • It warns that designers who remain fixated on pixel-perfect layouts risk becoming obsolete, urging them to adapt by engaging in AI-driven UX strategies.
Share:AI Is Flipping UX Upside Down: How to Keep Your UX Job, and Why Figma is a Titanic (It’s not for the Reasons You Think)
7 min read

Join the UX Magazine community!

Stay informed with exclusive content on the intersection of UX, AI agents, and agentic automation—essential reading for future-focused professionals.

Hello!

You're officially a member of the UX Magazine Community.
We're excited to have you with us!

Thank you!

To begin viewing member content, please verify your email.

Tell us about you. Enroll in the course.

    This website uses cookies to ensure you get the best experience on our website. Check our privacy policy and