Thu 2 Aug 2007
Conventional marketing wisdom has it that customers form loyalties to brands. This is the basic idea that a Ford owner is likely to buy another Ford based on a loyalty to the brand. I think the Japanese car companies would agree that it was not terribly difficult to lure American customers away from the cars of the red, white, and blue. From this is it is clear that there are more forces at work in a purchase decision than brand loyalty.
Modern thinking in marketing talks more about experience engineering. This is an interesting idea, which basically boils down to the creation of an a comlete experience that makes customers feel good about themselves. This is a concept that Apple has gotten right with the iPhone. The all-in-one device, feature-ridden as it is, is really a little bit of the American dream distilled into a 7×4x0.5″ package. It represents freedom, fashionability, and the open road. You can go anywhere with that bad boy and still have you lifeline back into the techno-sphere. It makes you feel good about yourself. It works without an instruction manual. You feel like a wizard.
More than the product itself, though, Apple has captured the full lifecycle of the customer experience. It was extremely simple to order online. They sent me beautifully crafted emails with tips and instructions for what to do when it arrives. It comes boxed in simple, but elegant black. When I removed the tape from the front of the unit, it automatically turned on and told me to plug it in for setup purposes. The entire process of acquisition and setup makes you feel warm and welcomed. It is reminiscent of my wife’s shopping excursions to the Coach store where they hold her hand and cheer her through the process of acquiring new handbags.
So, in short, Apple is a company that gets experience engineering. This is extremely apparent when contrasted with their partner, AT&T/Cingular/whatever. When we walked into a Cingular store, there was no mention of the iPhone whatsoever, which was confusing enough. I mean, maybe they only sell them in AT&T stores, but I really don’t think I should have to care about mundane details like that when it’s the same lousy telco. I’m very glad I ordered it directly from Apple where the entire process of dealing with salespeople and outdated phone setups was eliminated.
To the companies out there in the process of getting products into the marketplace, please think about the full lifecycle of the experience. Make customers feel good about themselves and you will succeed.
August 2nd, 2007 at 4:01 pm
You nailed two of the three key selling points:
1. It’s intuitive enough to be understood without an instruction manual, despite its complexity.
2. They made the sign up process dramatically easier than the typical phone company bureaucracy.
3. It’s dead sexy.
The sign-up process even kept the lines in the physical store moving pretty quick, according to a coworker. They only asked one question: cash or credit, and then herded you out the door.
A good book to pickup on the subject is The perfect thing : how the iPod shuffles commerce, culture, and coolness
by Steven Levy.
August 2nd, 2007 at 4:05 pm
Oh, and there’s certainly little brand loyalty in this global, commoditized economy, except for the surprising determination of car buyers in Detroit.
The few brands that command my loyalty these days are the ones that do make innovative, quality products like Tivo, Netflix, and Apple.
August 6th, 2007 at 11:56 am
If only Apple would come out with the iPlane or iAirlines. Can you imagine if flying was actually pleasant and you felt loyalty to one airline? Trying to use my frequent flier miles was like jabbing my finger in my eye. Voluntarily.
I have to second Matt’s recommendation for Netflix and add my own - ING Direct. Sure I only called once but I was never on hold and my issue was handled immediately by a smart, competent person that spoke english. And they gave me $10 for my trouble. Hey, I know my loyalty is for sale and I don’t care.
August 16th, 2007 at 12:48 pm
Completely agree with your assessment. The other aspect of what Apple did with the iPhone is that the feature set they delivered with the phone works flawlessly. Typing intelligence is fabulous for a rev 1 product. The screen is visible in all lighting conditions. Menu transitions are fluid, stylish and fast. A full weight web browser was released that works with the vast majority of web sites (and all that develop to web standards). Furthermore, this device is another piece of crack. Apple is the dealer getting another set of the tech deveice generation hooked on the Apple way. I’ve already resigned to the fact that my next comptuer will be some kind of Mac given the great user experience I have had with the iPhone and my wife with her iPod.
September 17th, 2007 at 11:57 am
What do you think of the iPhone dropping in price?