Assessment 2 Service strategy report
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Kenyatta University School of Economics *
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MISC
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Nov 24, 2024
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Enhancing Prime Video's Service Design and Delivery in the Australian Market
Student’s Name: Susan Telar
Student ID: S5242088
Course Coordinator’s Name:
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Executive Summary
This report presents a comprehensive analysis of Prime Video's service marketing audit
and provides recommendations for improving its service design and delivery in the Australian
market. The audit identified strengths in Prime Video's extensive content library, multi-device
accessibility, and trial period. However, it also highlighted weaknesses in content quality and
delivery.
To address these challenges and leverage opportunities, Prime Video should consider
several strategic initiatives. Leveraging customer data and personalization can enhance the user
experience by providing tailored content recommendations. Strategic partnerships and
competitive pricing can expand the platform's content offerings and attract a broader subscriber
base. Enhancing customer service through prompt issue resolution, data-driven insights, and
proactive engagement can foster customer loyalty and positive brand reputation.
Additionally, a service blueprint outlines a redesigned service delivery process that
prioritizes user interface enhancements, content curation, personalized recommendations, and
continuous improvement. These recommendations align with Prime Video's goal of providing
convenient and economical access to premium content and ensuring long-term success and
customer satisfaction in the dynamic streaming landscape of Australia.
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Introduction
This report builds upon the initial service marketing audit of Prime Video conducted in
Assessment 1. Prime Video, a subsidiary of the global giant Amazon, is a prominent player in the
streaming service industry. Established in 2007 as "Amazon Unbox," it has evolved into a
comprehensive online streaming platform known for its convenience and affordability. With a
wide range of content, including movies, TV shows, and original series, Prime Video caters to
the evolving digital consumption trends of modern consumers (Gold, 2019). As of 2022, it
secured a strong foothold in the US streaming market, competing with other industry giants like
Netflix and Disney+.
The objective of this report is to delve deeper into the findings of the initial audit and
provide a detailed analysis of the strengths, weaknesses, opportunities, and threats identified
within Prime Video's service marketing landscape. Additionally, it aims to offer practical
recommendations grounded in marketing service experience theories to enhance Prime Video's
service design and delivery in the Australian market (Gold, 2019). This report will not only
highlight areas for improvement but also provide a service blueprint outlining a redesigned
service delivery process, ensuring a seamless and satisfying user experience.
Identifying Service Weaknesses and Opportunities
One of the primary weaknesses identified in the audit is the quality issues reported by
customers. Users value a seamless and high-quality streaming experience, and a lack of timely
content updates can lead to user frustration. To address this, Prime Video should invest in
upgrading its streaming infrastructure to ensure consistent high-quality streaming. Additionally, a
more frequent and predictable content update schedule should be established to keep subscribers
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engaged (Guo, 2022). This can be achieved by negotiating better contracts with content providers
and producing more original content.
Furthermore, Prime Video lags Netflix in terms of original content, which poses a
significant threat. To tackle this weakness, Prime Video should allocate more resources to
producing compelling and exclusive original content. Collaborations with renowned filmmakers
and actors can help in creating content that stands out in the market (Hesmondhalgh & Lotz,
2020). Investing in high-profile projects and focusing on diverse genres can attract a wider
audience. Another issue is limited offline viewing options, which can be a drawback, especially
for users with unreliable internet connections. To address this, Prime Video should expand its
offline viewing capabilities to allow users to download a broader range of content for offline
consumption. This will cater to users who want to watch content without an active internet
connection and enhance user satisfaction.
Leveraging Customer Data and Personalization
One of the critical aspects of Prime Video's service that requires enhancement is the
utilization of customer data and personalization to improve the user experience. Personalization
has become a cornerstone in the realm of digital services, as it not only fosters customer
engagement but also significantly impacts customer retention and satisfaction (Denga et al.,
2022). To maximize the potential of personalization, Prime Video should adopt several strategies.
Firstly, Prime Video should invest in advanced data analytics and machine learning
algorithms to gain deeper insights into user behavior and preferences. By continuously analyzing
what content users watch, how long they engage with it, and their historical viewing patterns,
Prime Video can develop a robust recommendation engine (Denga et al., 2022). This engine
should provide users with tailored content suggestions that align with their interests, thereby
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enhancing the likelihood of content discovery and consumption. For example, if a user
frequently watches science fiction series, the platform should prioritize recommending similar
genres, increasing the chances of user engagement.
Secondly, personalization should extend beyond content recommendations. Prime Video
can customize the user interface based on individual preferences, allowing users to organize their
home screens with their favorite genres or specific content creators (Fahy & Jobber, 2019). This
not only adds a personal touch but also streamlines the user experience, making it more intuitive
and enjoyable.
Thirdly, Prime Video should consider implementing interactive features that allow users
to provide feedback on content recommendations. This feedback loop can further refine the
recommendation engine, ensuring that it evolves in real-time based on user responses (Fahy &
Jobber, 2019). Additionally, user-generated content, such as reviews and ratings, should play a
significant role in shaping recommendations, adding a social dimension to the personalization
process.
Incorporating personalization effectively not only enhances the user experience but also
strengthens customer loyalty. Users are more likely to remain engaged with a platform that
understands and caters to their preferences (Fahy & Jobber, 2019). By leveraging customer data
and personalization, Prime Video can position itself as a market leader in providing tailored,
immersive, and satisfying streaming experiences for its Australian audience.
Strategic Partnerships and Competitive Pricing
Prime Video faces fierce competition in the Australian streaming market, primarily from
Netflix, Disney+, and local players like Stan. To maintain its market share and foster growth,
Prime Video should strategically forge partnerships and revisit its pricing strategy. Strategic
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partnerships can significantly bolster Prime Video's content offerings and market presence.
Collaborations with major film studios, renowned content creators, and local production houses
can result in exclusive content that attracts a broader audience. By securing early streaming
rights to highly anticipated movies or TV series, Prime Video can generate excitement and drive
subscriptions. For instance, partnerships with acclaimed directors or actors for original
productions can elevate the platform's content library, making it more competitive in the market.
Moreover, Prime Video should explore cross-promotional partnerships. By bundling its
service with other complementary offerings, such as Amazon Prime, Prime Reading, or Prime
Music, the platform can provide added value to subscribers. This approach not only incentivizes
existing Amazon Prime members to use Prime Video but also attracts new subscribers who seek
comprehensive digital services. This bundling strategy leverages the synergy between different
Amazon services and enhances the overall customer experience. Competitive pricing is another
crucial element for Prime Video to consider. While the platform already offers a subscription-
based model, it should continually assess its pricing tiers to remain competitive. Introducing
flexible subscription options, such as lower-priced plans with ads or family packages, can cater
to a broader audience. Additionally, periodic discounts, especially during promotional events or
holidays, can incentivize potential subscribers to sign up.
Prime Video should also invest in data analysis to understand the price sensitivity of its
target audience. By monitoring subscriber churn rates and conducting price elasticity studies, the
platform can fine-tune its pricing strategy to strike the right balance between profitability and
affordability. Strategic partnerships and competitive pricing are essential components of Prime
Video's growth strategy in the Australian market. By forming alliances with content creators and
studios, the platform can enrich its content library and differentiate itself from competitors.
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Simultaneously, offering flexible pricing options and bundling services with Amazon Prime can
attract and retain a diverse subscriber base, ultimately contributing to Prime Video's continued
success and market dominance.
Enhancing Customer Service
Prime Video's initial service audit identified concerns related to customer service,
including negative online reviews that impact the brand's reputation. To improve customer
satisfaction and loyalty, Prime Video should focus on enhancing its customer service. One crucial
step is to address user complaints promptly and effectively. This entails establishing a robust
customer support system that can handle a wide range of issues, from technical difficulties to
billing inquiries. Customer service representatives should be well-trained to provide empathetic
and efficient assistance to users (Fahy & Jobber, 2019). Additionally, implementing chatbots or
AI-driven support can enhance response times and provide quick solutions to common queries.
This approach not only improves the overall customer experience but also reduces the workload
on human customer support agents, allowing them to focus on more complex issues.
Furthermore, Prime Video should actively monitor and analyze customer feedback and
complaints. By collecting and analyzing data on user satisfaction, pain points, and recurring
issues, the platform can identify areas of improvement and prioritize them. This data-driven
approach ensures that customer service enhancements are aligned with user needs and
preferences (Periaiya & Nandukrishna, 2023). To mitigate negative online reviews, Prime Video
can proactively engage with dissatisfied customers. Responding to negative feedback publicly
and offering solutions or compensation can demonstrate a commitment to addressing user
concerns. Additionally, Prime Video can encourage satisfied customers to leave positive reviews,
helping counterbalance the impact of negative feedback. Another aspect of customer service is
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educating users about the platform's features and functionalities. Providing comprehensive online
guides, tutorials, and FAQs can empower users to troubleshoot common issues independently.
This self-help approach not only improves user satisfaction but also reduces the strain on
customer support resources.
Service Blueprint: A Redesigned Service Delivery
To address the identified weaknesses and capitalize on the opportunities outlined in the
service audit, Prime Video should consider a comprehensive redesign of its service delivery
process. This service blueprint outlines the key elements of this redesign, focusing on improving
the user experience and streamlining internal operations.
Frontstage Elements
1. User Interface Enhancement:
At the forefront of the service redesign is the
enhancement of Prime Video's user interface. The user interface should be intuitive, visually
appealing, and adaptable to different devices, including smartphones, tablets, and smart TVs. It
should prioritize content discovery and personalization, allowing users to easily find and engage
with content that aligns with their preferences.
2. Content Recommendation Engine:
Central to the user interface is a robust content
recommendation engine that leverages user data and machine learning algorithms. This engine
should provide users with personalized content suggestions based on their viewing history,
preferences, and real-time behavior. Users should have the option to rate content, providing
feedback to further fine-tune recommendations.
3. User Feedback Mechanism:
To enhance customer engagement, Prime Video should
incorporate a user feedback mechanism within the interface. Users should be able to rate content,
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leave reviews, and provide feedback on their viewing experience. This information can be
valuable for both improving content quality and addressing technical issues promptly.
4. Personalized Home Screen:
The home screen should be customizable, allowing users
to organize their content based on their preferences. Users can prioritize genres, creators, or
specific series, creating a tailored browsing experience. This personalization extends to content
categories, recommendations, and trending content.
Backstage Elements
5. Content Curation and Acquisition:
Internally, Prime Video should focus on content
curation and acquisition. This involves forming strategic partnerships with studios, content
creators, and local production houses to secure exclusive content rights. Early access to
blockbuster movies and collaborations with renowned directors can set Prime Video apart from
competitors.
6. Data Analytics and AI:
Data analytics and artificial intelligence play a significant role
in the backstage operations. Advanced analytics should continuously monitor user behavior and
feedback, feeding insights into the recommendation engine. AI-driven algorithms can optimize
content delivery, ensuring smooth streaming experiences.
7. Customer Support Optimization:
Prime Video should invest in customer support
optimization, combining human agents with AI-driven chatbots. A 24/7 support system should
handle user inquiries, technical issues, and billing concerns efficiently. Human agents can focus
on complex problems while chatbots provide immediate assistance for common queries.
8. User Education Hub:
A comprehensive user education hub should be established,
offering tutorials, FAQs, and troubleshooting guides. This self-help resource empowers users to
resolve issues independently and enhances their understanding of the platform's features.
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9. Performance Monitoring:
Performance monitoring tools should track server
performance, video quality, and latency. Real-time monitoring ensures that technical issues are
identified and resolved promptly, guaranteeing uninterrupted streaming experiences.
10. Continuous Improvement:
Finally, Prime Video should adopt a culture of
continuous improvement. Regular reviews of user feedback, performance metrics, and content
quality should inform iterative enhancements to the service delivery process.
Conclusion
In conclusion, this report has provided a comprehensive set of recommendations for
Prime Video to enhance its service design and delivery in the Australian market. By addressing
the identified weaknesses and leveraging opportunities, Prime Video can strengthen its
competitive position and provide a superior service experience to its customers. Additionally, the
service blueprint outlines the redesigned service delivery process, ensuring a seamless and
satisfying user experience. It is essential for Prime Video to continuously assess and adapt its
strategies to remain at the forefront of the ever-evolving streaming industry.
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References
Denga, E. M., Vajjhala, N. R., & Rakshit, S. (2022). The Role of Digital Marketing in Achieving Sustainable Competitive Advantage
. Digital Transformation and Internationalization Strategies in Organizations. https://www.igi-global.com/chapter/the-role-of-digital-
marketing-in-achieving-sustainable-competitive-advantage/290620
Fahy, J., & Jobber, D. (2019). EBOOK: Foundations of Marketing, 6e. In Google Books
. McGraw Hill. https://books.google.com/books?
hl=en&lr=&id=RssvEAAAQBAJ&oi=fnd&pg=PP1&dq=Prime+Videos+Service+Marke
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Gold, J. (2019, May 27). Market Analysis Report on Amazon Prime Video
. https://www.slideshare.net/JessicaGold8/market-analysis-report-on-amazon-prime-video
Guo, M. (2022). The Impacts of Service Quality, Perceived Value, and Social Influences on Video Streaming Service Subscription. International Journal on Media Management
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(2), 1–22. https://doi.org/10.1080/14241277.2022.2089991
Hesmondhalgh, D., & Lotz, A. (2020). Video screen interfaces as new sites of media circulation power. International Journal of Communication
, 14
, 386–409. https://eprints.qut.edu.au/200102/
Periaiya, S., & Nandukrishna, A. T. (2023). What Drives User Stickiness and Satisfaction in OTT
Video Streaming Platforms? A Mixed-Method Exploration. International Journal of Human–Computer Interaction
, 1–17. https://doi.org/10.1080/10447318.2022.2160224