Netflix's customer satisfaction slump offers a cautionary tale for retailers

Sometimes for businesses looking to improve their customer experience management strategies it benefits to learn their lessons from a cautionary tale.

Sometimes for businesses looking to improve their customer experience management strategies it benefits to learn their lessons from a cautionary tale.

Last year, online and mail-order video service Netflix announced that it would be raising its prices by 60 percent and changing its subscription plan. As a result of the announcement, which came in July, the company lost 800,000 customers in the third quarter, Bloomberg reports.

Contributing to the loss in customer satisfaction and loyalty was attempts by the business in September to force customers to open accounts with its new brand Qwikster to receive services they were previously able to access through Netflix.

"While the plan was abandoned and the company has since started adding subscribers, the toll on customer satisfaction is heavy and Netflix remains in a precarious position relative to the rest of the industry," the American Consumer Satisfaction Index said in a statement, according to the source.

Since then, the company has begun to right itself - gaining 610,000 new customers in the fourth quarter. However, it offers retailers warning on instituting radical new retail plans without customer input and consideration.