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

Discover how digital twins are transforming industries by enabling innovation and reducing waste. This article delves into the power of digital twins to create virtual replicas, allowing companies to improve products, processes, and sustainability efforts before physical resources are used. Read on to see how this cutting-edge technology helps streamline operations and drive smarter, eco-friendly decisions

Article by Alla Slesarenko
How Digital Twins Drive Innovation and Minimize Waste
  • The article explores how digital twins—virtual models of physical objects—enable organizations to drive innovation by allowing testing and improvements before physical implementation.
  • It discusses how digital twins can minimize waste and increase efficiency by identifying potential issues early, ultimately optimizing resource use.
  • The piece emphasizes the role of digital twins in various sectors, showcasing their capacity to improve processes, product development, and sustainability initiatives.
Share:How Digital Twins Drive Innovation and Minimize Waste
5 min read

Discover how venture capital firms are shaping the future of product design — and why experienced design leaders need to be consulted to ensure creativity and strategy aren’t left behind. This article delves into the power VCs hold in talent acquisition and team dynamics, highlighting the need for a collaborative approach to foster true innovation.

Article by Darren Smith
How Venture Capital Firms Are Shaping the Future of Product Design, & Why Design Leaders Need to Be Part of the Solution
  • The article explores how venture capital (VC) firms shape product design by providing startups with critical resources like funding, strategic advice, and network access, but often lack an understanding of design’s strategic value.
  • It discusses the impact of VC-led hiring practices in design, which can lead to misaligned job roles, undervalued design leadership, and teams focused more on output than innovation.
  • The piece calls for a collaborative approach where design leaders work alongside VCs in talent acquisition and strategic planning, establishing design as a key partner to drive product innovation and long-term brand success.
Share:How Venture Capital Firms Are Shaping the Future of Product Design, & Why Design Leaders Need to Be Part of the Solution
8 min read

Discover the journey of design systems — from the modularity of early industrial and printing innovations to today’s digital frameworks that shape user experiences. This article reveals how design systems evolved into powerful tools for cohesive branding, efficient scaling, and unified collaboration across design and development teams. Dive into the history and future of design systems!

Article by Jim Gulsen
A Brief History of Design Systems. Part 1
  • The article offers a historical perspective on design systems, tracing their origins from early modularity concepts in industrial design to the digital era, where they have become essential for consistent user experiences.
  • It highlights the evolution of design systems as organizations sought ways to streamline UI and UX elements, allowing teams to maintain cohesive branding while speeding up development.
  • The piece draws parallels between the development of design systems and pivotal moments in history, especially in print technology, where breakthroughs transformed access and consistency. These precedents show how modern design systems evolved into essential tools for business value.
  • It emphasizes how modern design systems empower teams to scale efficiently, fostering a shared language among designers and developers, and promoting a user-centered approach that benefits both businesses and end-users.
Share:A Brief History of Design Systems. Part 1
16 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