14 Choosing a delivery company LoveFilm an online retailer

LoveFilm is an online company
with 1.6 million customers in the UK, Germany, Sweden,
Norway and Denmark. I’m the Chief Marketing
Officer of LoveFilm, so I’m responsible for
all of the, ultimately for all of the new customer
acquisition and retention, as we call it, so getting customers
and keeping customers and getting them to use
the LoveFilm service in the countries that
we operate in within Europe. When did LoveFilm start? LoveFilm was actually born
in the early part of 2004 when the investment company and
financial backers behind the business bought a technology company,
called “DVDs on Tap”. We created a new business
out of that called LoveFilm.com, which I think
actually launched in the first or second
month of 2004 in the UK. What does LoveFilm do? So, LoveFilm is
in the business of delivering films to people,
films and TV series. We started life as a purely DVD
rental-by-post business and are emerging as what we call
a hybrid or a fused business, a joint business of
DVD rental-by-post and streaming by TV, Internet TV
or games consol or PC. So essentially we’ve set out
to create the largest possible range of film and TV series and deliver them
to people in as many markets, as many
geographical markets and as many horizontal
markets as possible on as many
devices as possible. So we have over 70,000 titles available
on Blu-Ray disks, on DV… normal DVDs, available on digital
to be streamed or to… available on digital
on a pay-per-view basis. So people use both, the newest part
of our service is the streaming service, so still less than half of our
customers are streaming regularly, but that is, in all honesty
that’s exploding, that’s a really fast, fast growing, and fast emerging
part of our service. Toni Adams is the Customer
Services Manager at LoveFilm. How does the customer
get films from LoveFilm? Well,
we’re an online business, so the vast majority
of our customers come through,
um, our website, and are signed up, um, directly
on our… on our homepage. The way that the service works
is that you select the films that you would like
to watch via our website, um, and we always recommend
at least, um, ten titles. Um, we will then send you a disk out
depending on what your package is, um, you get to watch it
and then you return it, and as soon as we get it back,
um, we’ll send you another one. How fast is the service? So our promise is that, um, when
a customer returns a disk back to us we will get them a replacement
out within one business day, and we hit that
pretty much, um, all the time. Can customers
track their DVDs? Everything
is done online so, um, when we receive a disk back
into the distribution centre, we log it straight
onto our system and that’s then reflected on the
customer’s account which they can see. Um, likewise once
we’ve selected their new title, um, again that’s updated
onto the system, um, the customer can again see that
through their… their rental page. And… and we also
send them an e-mail to confirm that that particular
disk is on its way to them, so they know
when to expect it. What logistical problems
do you have to deal with?>From the
physical service, obviously the… the key, um, factor
that impacts our… our business is anything that’s going on
in terms of the Royal Mail, so for example last year when
we were hit by the bad weather, um, that did delay some
deliveries to customers, um, but we’re… we’re very quick to,
um, communicate to customers where we think there might be
something that’s going to slow down their deliveries and…
and we try and do something that, that helps them, um, feel that
they are still getting a service, so for example
we’ll draw their attention that they’re still able
to watch online, or, um, if the problem
is continued for a period of time, we’ll do something
to try and make it up to them. Subtitles by the Amara.org community

Norman Bunn

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