What’s Apple Got That Other Retailers Don’t?
Unless you’ve been living in a cave, you know that Apple is enjoying amazing success. Their stock is up almost 135% for 2007, compared to Google’s 52%, and the NASDAQ Index, up 12%. While the iPhone and iPod deserve some of the credit, Apple’s ability to provide a great customer experience is at the root. Their
retail stores contribute $1.24 billion of Apple’s $6.2 billion in sales. That’s a 42% increase over 2006. And it translates into stores that generate sales at a rate of $4000 per square foot. All this amid statistics that show other retailers, like Dell, Nokia and Sony, are barely making it.
What’s the secret? To begin with, shopping in an Apple store is a complete ‘experience’. Bright lights and great acoustics fill the room with energy and help customers feel like they’re attending an important event, rather than simply shopping at a store. The overall design of the space also contributes to the experience and ties in closely to the products themselves.
But nothing makes the Apple store more appealing than its customer service. From smiling employees carrying handheld terminals for faster credit card swiping and experienced and knowledgeable technicians servicing customers’ problems from behind the ‘genius bar’ to ‘personal trainers’ offering customized workshops and training, Apple seems to have thought of everything when it comes to serving the needs of its customers. You can even make an appointment with a personal shopper, and recently, Apple began stationing concierge teams in each store.
Apple also encourages shoppers to linger, and to use the products for as long as they like, giving the stores a community feel that promotes spending.
As Michael Gartenberg, vice president and research director at Jupiter Research, said, “They’ve become the Nordstrom of technology.” He goes on to say that, while many people first visit Apple stores out of curiosity, they come back over and over because of the products and the way shopping at Apple—from the futuristic architecture and sweeping glass staircases to the skill of their salespeople– makes them feel.
This dedication to complete and undivided personal attention is the key to Apple’s gigantic success. While other retailers are investigating ways to cut back on customer services to beef up a flagging bottom line, Apple continues to pour money into serving the customer. It’s a strategy that has worked beautifully, and has left competitors Sony, Nokia and Samsung to cope with beautiful, but virtually empty, stores.
So what’s Apple got that other retailers don’t? Beautiful design. Incredible customer service. A cool, casual atmosphere where spending your hard-earned cash seems like fun. Knowledgeable, approachable staff who have the answers to your questions. The techie products you most want to own. What a novel concept.
Tags: Customer Experience, customer satisfaction, icc client exchange