I shop for movies at Blockbuster only. I am fully aware of Netflix and have heard great things about it, plus I hate the Blockbuster store experience and yet I only shop there. This is what we call defection latency. 1 bad experience isn’t enough for me to leave, neither is 12 but at some point after that I will defect permanently.
Here is the lesson for Blockbuster: when the head of strategy sees the store layout and thinks ‘boy this is shitty’ but then looks at sales and sees that Netflix has hardly caused any defections this doesn’t mean the store isn’t really shitty and that customers don’t like Netflix, it simply means they’re taking time to shake off a shopping habit that’s been with them for 12 years.