Thursday, 30 June 2011

Why Apple will rule the world (And I'm just fine with that)

Linked by my malfunctioning iPhone, but poles apart in customer service, are the divergent tales of Tesco and Apple.

Last week I wrote of the woeful treatment I received at the hands of pile-em-high-sell-em-cheap retail giant Tesco. Perhaps no more than I deserved for buying from a brand with their reputation. My experience worsened through the weekend as my letter to their CEO first took several days for a reply, then got a holding note from a flunky before finally a confirmation another "customer service" hack that they couldn't do anything for me.

Time to throw myself on the mercy of Apple. I made an appointment at the genius bar of the new Covent Garden store. (The largest in the world. Amazing.) I showed up promptly. Explained that I'd been an Apple customer since my first 512k Mac in 1986. That this was the first time I had ever NOT purchased an Apple product direct from the store. Related my Tesco experience. And hoped.

The lovely genius did not disappoint. A quick check of the serial number confirmed that the phone was indeed just 37 days out of warranty. Not a problem. We'll fix you up with a new one. That shouldn't have happened. We value your continuing business and want you to be happy. Fifteen minutes and a friendly chat later, I had my new kit in hand and was not only a happy, but a delighted, customer. I immediately treated myself to a new case for the phone and resolved that it's time to loosen the purse strings and buy an iPad. That one cheerful piece of customer service, requiring them to take a slight loss by giving me what's now one of their oldest pieces of kit, will trigger more than £600 in additional sales and the good PR of me boring friends and readers with tales of Apple-inspired delight. A shame Tesco couldn't learn from this. (Nope, not even an offer of a free month of service ... a princely £45 ... to get me back on side!)

Of course, it's not just a quick replacement of faulty equipment that makes Apple special. It's the whole ethos of the company. A few days later I was lucky enough to be invited, thanks to our advertising agency Ogilvy, to an innovation forum for a select group of marketing bosses at Apple's London HQ. There we met with a parade of senior execs. All casual, approachable and brilliant; human representations of all that makes their technology special.

They specifically asked us not to blog or otherwise communicate widely on the details of what we learned. Apple keeps its cards close to its chest, a marketing strategy that's worked wonders for them. So, without divulging any confidences, what did I see that convinced me of Apple's world dominance?

1. They know what they do best, and stick to it. Did you realise that they only have 14 products? They build what they believe in ... usually stuff that's revolutionary ... and put everything behind it. Amazingly, they do very little market research and don't rely on focus groups. And yet they instinctively "get" the customer in a way I haven't seen in any other technology company. They are confident that they can anticipate what we need, before we need it, and give it to us.

2. They're not a technology company, they're a mobile lifestyle company. Apple has always gotten the fact that it's not about the technology, it's about what you do with it. And we all are on the move these days. Whether it's the iPhone or the iPad, it's all about connecting you to the whole world, from wherever you are, with minimum effort. How did we ever live without it?

3. They are in the right place at the right time. Between iPods, Phones and Pads, a frightening chunk of the world has an iTunes account. Which means Apple has your contact and credit details, plus access to all the apps and media you download. You think "you are what you eat"? You are what you consume all right, but it's all about the media that goes through your brain. Think about it. With a credit rating, an address and a view of what someone reads, listens to and watches, you can climb into their soul without ever meeting them. All of which means that Apple is positioned to be the greatest channel of targeted advertising that has ever existed. A lot of people have talked about this, but Apple has all the tools to do it. And the discretion to do it well.

I could go on. As I did, to anyone who would listen, after my mind expanding session on Hanover Street. And the best part? I got to tell my Tesco story to Apple's EMEA CEO, as part of a discussion about their channel strategy and the dangers of tainting the Apple brand with companies like Tesco that can't deliver the same combination of wisdom and service. Turns out working with Tesco was indeed a concern, and that Apple's still watching the relationship closely. I like to think Tesco will someday regret treating me so badly. Just as Apple will be glad they treated me so well. I have another genius bar appointment next Tuesday, after which the new iPad is on the shopping list.

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