Apple turns bad customers into more profitable customers. Here’s how:
At Apple, store managers call every detractor within 24 hours. Initially, they found there were some detractors they couldn't reach. Subsequent studies showed that detractors that they did reach purchased substantially more Apple products and services than the others. Further studies showed that every hour spent calling detractors was generating more than $1,000 in revenue or additional sales of $25 million in the first year, which was a good return on the investment.
In traditional management, where customers are secondary, the expense of following up with customers would seem like the first kind of expense to cut in a crunch. With these numbers in hand, Apple's managers realize that this is one of the last things that should be cut.
At Apple, customer focus is thus not a vague slogan. It's at the core of the way the stores are managed. Employees know where they stand among their peers in terms of NPS and where their stores stands relative to the rest of the stores in the region.
It makes Apple a lot of money:
Where a typical electronics store averages $1,200 per square foot in sales, mature Apple stores exceed $6,000 per square foot-the highest productivity in retailing of any kind.
Thus Apple practices radical management, where making money is the result, not the goal of the organization. The bottom line of its business is to delight the customer. We are indebted to The Ultimate Question 2.0 for showing us how they accomplish that on a daily basis.
- Thank You, United: More About User Experience Extending Past The Website
- Cool Website Tuesdays: My Starbucks Idea
- Don’t Make The User Feel Stupid: A Lesson In User Experience
- Product Talk: User Stories Are Better Than PRDs
- UXMovement: Applying the Golden Ratio to Web Layouts and Objects