Markets

Netflix's Qwikster Mess Doubled the Number of People Who "Dislike" It

By Jim Edwards

Updated on: October 11, 2011 / 11:04 AM EDT / MoneyWatch

You don't need to be a marketing expert to know that Netflix (NFLX) hurt its reputation by trying to introduce a DVD-only company, Qwikster, and then pulling the brand a few days later. (One customer said CEO Reed Hastings' plan to separate and rebrand the DVD delivery service from the online streaming service was "the worst business decision since New Coke.")

But it is interesting that you can measure quantitatively just how much Netflix hurt itself. According to research by E-Poll Market Research, which monitors consumer sentiment:

The number of Netflix customers who described themselves as "loyal" to the brand declined 28 percent -- from 76 percent to 55 percent -- between this year and last (click to enlarge images):

Netflix more than doubled the number of people who "dislike" it to 29 percent this year alone:

And it knocked 10 points off its appeal rating:

The Qwikster U-turn seems to be a classic illustration of how much consumers hate rebranding and the introduction of new logos.

Gatorade damaged itself initially during its rebirth as "G." Both The Gap and Tropicana have had to cancel brand redesigns after consumer backlashes. The Netflix numbers suggest that these backlashes are real: It's not just a nine-day wonder on Twitter; when you change your brand without the permission of your customers, it does real harm to your corporate reputation. For comparison, note how Continental, United and Starbucks (SBUX) fared when they ushered in new dressage: Because they hardly changed their brands at all, consumer forgave them for it.

Less is more.

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