The strategy behind Netflix’s winback machine

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Netflix has roughly 300mm paying subscribers and an estimated monthly churn rate of 2% (roughly 6M users per month). This got us thinking… How much revenue is Netflix earning from winback campaigns and what does their lifecycle program look like?

Assuming Netflix achieves a 5% conversion rate on winback emails at their lowest plan of $7.99 per month, that’s an estimated $28M annual regained revenue from each monthly cohort of churned users.

With that inference, we decided to dig into their lifecycle program. We analyzed four months of win-back emails and mapped out the entire lifecycle journey for one user who churned. We uncovered four major takeaways.