
We formed a new hypothesis: “Increasing the rate of DVD shipment speed will improve retention.” We also added a new metric to the e-staff metrics: “The percentage of DVDs delivered the next day.” Over the next few years, our operations team expanded our automated DVD delivery system from twenty hubs to the equivalent of one hundred. We also tied our inventory system to the website’s merchandising system and only displayed titles …
…d at “e-staff metrics.” Fifteen executives sat in the room, sifting through data, asking questions. The metrics measured retention, revenue, and cost, but just as important, customer behavior changes. We kept a keen eye on the metrics and looked for unexplained changes.
My introduction to Netflix’s data-driven approach began with a Monday morning e-staff meeting where we looked at “e-staff metrics.” Fifteen executives sat in the room, sifting through data, asking questions. The metrics measured re…