2. Get input from customers before making changes. OK, Netflix is known for doing lots of testing and surveys. But let’s say their issue was high bandwidth costs. Maybe another approach would have been just limiting the number of streaming hours customers could use (to limit their costs). The point is that there was probably a way to bring their revenues in line with costs without a backhanded slap in the face to customers.
3. Explain why you’re making the change, in terms relevant to the customer. As a Netflix customer, I don’t really care whether they’re bandwidth costs have gone up, whether the Hollywood content providers are raising licensing fees, or whether they want to pay themselves better bonuses. But I would have preferred some explanation of why I was being inconvenienced with a more expensive or less capable plan. Just be honest, and I’ll respect you for it, even if I don’t like it.
Startup Lessons from Netflix – How to Communicate Major Changes to Customers.