Instincts and Analytics.

Today’s Marketing Cookie is about balancing data with intuition to make smarter, more human-centric marketing decisions.

When it comes to making good marketing decisions, most of the answers you need are right there in the data. By diving into your metrics, you can uncover insights about what your audience likes, how they engage with your content, and what drives conversions. Instead of guessing, you can make informed choices based on real evidence, ensuring your strategies are aligned with what actually works.

Netflix is a great example of how powerful data can be when making decisions. By analyzing viewer habits, preferences, and engagement, Netflix can predict what types of shows and movies will be successful. For instance, the data showed a growing interest in sci-fi and nostalgic 80s themes, leading to the creation of "Stranger Things," which became a massive hit. This data-driven approach has helped Netflix not only create popular original content but also maintain a competitive edge in the entertainment industry.

But, not all data-driven decisions work out. Netflix has had its share of flops despite using data. Take "Cowboy Bebop," a live-action adaptation of a beloved anime series, which was canceled after one season due to poor reviews and viewership. Or "The Irishman," a high-budget crime epic directed by Martin Scorsese and starring Robert De Niro, which underperformed. Then there was "Bright," a Will Smith fantasy film that was savaged by critics and received poor reviews from viewers, calling it a tonal mess.

In 2011, Netflix decided to raise their prices by 60% based on data suggesting customers would accept higher pricing. However, the analysis failed to account for customer perception, leading to a subscriber revolt and Netflix losing over 800,000 subscribers. Okay, okay, I hear you. That was a long time ago. Well, a similar situation happened again in 2022 when Netflix lost over 1 million subscribers in less than 90 days after another data-driven decision to raise prices. The data missed the human side, overlooking how people were feeling after the pandemic, proving that the numbers can't tell the whole story.

So, the lesson here is that increasing your price, regardless of what the data says, isn’t going to be well received, right? No. Netflix successfully rolled out a price increase in 2017 that did not negatively impact subscriber growth or lead to significant subscriber losses. In fact, Netflix added far more new subscribers (8.3 million) in the next 90 days than Wall Street expected, and the price change was called a "colossal success."

The truth is, while data is incredibly valuable, it's not infallible. When making any decision, using data is crucial, but it's equally important to balance it with some basic empathy and a deeper understanding of your audience. You may find that sometimes your gut is smarter than your head and your instincts might just protect you from what today's fortune warns: "Don't let statistics do a number on you."