Have you ever heard of Blockbuster? Yeah, that’s right, the one that used to be the king of movie rentals before Netflix came along and stole the crown. But do you know why Blockbuster fell from grace? It wasn’t just because of competition from streaming services. It was because of their terrible customer experience.
Back in the day, renting a movie from Blockbuster was painfully cumbersome. You had to drive to the store, browse through unending rows of DVDs, and hope that the one you wanted was actually in stock. Not to forget, there was the late-return penalty too! If you didn’t return your movie on time, you were hit with a hefty fine. No one likes to be punished for enjoying a good movie, and customers quickly grew tired and disgruntled with this policy.
But it wasn’t just the late fees that turned customers away. It was the overall experience. The stores were often a jungle of a mess, and the customer service was subpar on its best day. Employees didn’t seem to care about their customers or their experience, and it eventually became a permanent representation of the brand.
Introducing Netflix, as it entered the scene and announced its arrival with finesse. They offered a friendly, personalized and easy-to-use service that allowed customers to rent movies from the comfort of their own homes without any late fees. It was a game-changer, and Blockbuster couldn’t keep up.
But there’s a silver lining to this story. Blockbuster learned from their mistakes, albeit a little too late. They tried to compete by offering online rentals and even eliminating late fees, but it was too little, too late. Blockbuster eventually filed for bankruptcy in 2010.
So, what can enterprises learn from Blockbuster’s downfall? Customer experience is key. If brands do not continuously strive to provide a positive, memorable experience for customers, they’ll go elsewhere in a heartbeat. It’s important to listen to their feedback, address their concerns, and show them that you value their business. Don’t let bad customer experience be the downfall of your business. Learn from Blockbuster’s mistakes and aspire to do better in today’s world by embracing tech-driven tools.
And if you need some help along the way, our team of experts is here to guide you. Contact us today to learn how our tools as well as experience can help your brand, employees and customers.



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