How Netflix Increased Its Retention Rate with Six Proven Strategies

As the streaming wars heat up, it’s critical for companies to have an effective product strategy in order to stay ahead of their competition. Netflix is a leader in this field, having developed and implemented six strategies that have resulted in a significant increase in its monthly retention rate. In this blog post, we will explore these strategies, their results, and the key learning points that businesses can take away from them.

The Netflix product team used one high-level engagement metric as the primary focus of their efforts – increasing the monthly retention rate. At the start of their project, they had a 90% retention rate but were able to push it all the way up to 98% by the end of their project. This 8% improvement had a huge impact on business growth for Netflix.

Now let’s take a look at each of these strategies in detail.

  • Strategy 1 focused on improving user experience and was centered around providing better onboarding experiences for new users.
  • Strategy 2 aimed at developing better content recommendations that would lead to more satisfied customers.
  • Strategy 3 was about creating personalized homepages tailored to each individual user’s preferences.
  • Strategy 4 was about increasing user engagement by providing incentives for watching certain shows or movies.
  • Strategy 5 focused on optimizing search results so that users could quickly find what they were looking for with minimal effort.
  • Finally, strategy 6 was about introducing features such as automatically playing episodes or suggesting shows based on past viewing habits.

The team found several key learning points from experimenting with these strategies that were applicable to all businesses: doubling down on successful strategies leads to even greater success; cutting losses on unsuccessful strategies leads to better results overall; and investing resources into understanding user behavior pays off in spades!


In summary, Netflix has developed and implemented six proven strategies over the course of several years that have led to an impressive 8% increase in its monthly retention rate and significant business growth as a result. It has also provided important lessons to other companies looking to optimize their product experience – namely, double down on successful strategies, cut losses when necessary, and invest resources into understanding user behavior for optimal success!

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