Thanks to exceptional customer service, Apple Retail continues to be one of the most profitable stores on the planet. Apple’s 373 retail stores generated just over $4 billion in revenue for its fiscal third quarter ending June 30, 2012, a 17 percent increase over the previous year. Eighty-three million customers visited Apple Retail stores during the quarter and many of them were new to Apple products.
The Apple Store sold just over 790,000 Macs. According to Apple CFO Peter Oppenheimer, nearly half of those customers who purchased the computers had never owned a Mac before. After having spent one year researching the Apple stores, this fact didn’t surprise me. Apple store employees have been extraordinarily successful at converting browsers into buyers and buyers into evangelists. Here are 7 ways they do it.
Non-Commissioned Sales Floor. Be honest. Do you enjoy high-pressure salespeople pushing you into buying a product before you leave the store? Selling you extended warranties you don’t need? How about convincing you that your new television will work better with a $100 cable when a $4 one will work just as well? New customers in an Apple Store don’t feel pressure because there is no pressure on the sales staff to sell you something before you leave the store.
I was recently interviewed for a story titled, Did Apple Tame the Salesman? The reporter made the point that sales professionals at many companies, including Best Buy, are toning down their high-pressure sales tactics and that consumers have the Apple Store to ‘thank’ for it. Apple doesn’t “sell” customers products. It creates experiences. Big difference.
Empowerment. Don’t be surprised to walk into an Apple Store, ready to pay more than $3,000 for a fully-loaded MacBook Pro, only to be talked down to buying a far less expensive system. I’ve heard from customers recently that this happened to them. Again, I’m not surprised. Apple employees are empowered to do what they believe is right for the customer without fear of reprimand.
Probing. Early in the Apple Store history, executives realized that former teachers make good salespeople. Why? They ask questions to match customers’ needs with the most appropriate device. Apple Store sales specialists are trained to probe: ask a series of open and closed-ended questions in customer conversations. A closed-ended question such as, “Will this be your first Mac?” might be followed by “What will you be doing with it?” If the answer to the first question is ‘yes’, the conversation will take a decidedly different—and more basic— tone than it would for a repeat customer.
Presenting Solutions. Apple Store employees are trained to build relationships with customers even if the customer leaves the store without having made a purchase. They do so by presenting the customer with a solution to take home that day. Here’s a scenario:
Customer: “The resolution on the new MacBook Pro looks amazing, but it’s expensive. I’ll think about it. Thanks.”
Specialist: “Take your time. We like to think of ourselves as more than a store. For example, we offer free workshops for people at all experience levels. We have one that teaches you about our new operating system, OS X Lion, and it shows you all the cool features that will let you interact with Macs in entirely new ways. Can I sign you up?”
One to One. When customers walk by an Apple Retail Store (typically located in shopping malls, which is the way Steve Jobs wanted it), they are likely to see Apple trainers sitting down with customers teaching them something new like editing video, building presentations, or making photo albums. These trainers are called ‘creatives,’ and conduct One-to-One workshops that customers can buy upon the purchase of a new Mac. For $99, a new Mac customer can sign up for personalized sessions over the course of a year. I’ve been told the program is a loss-leader for Apple, but it helps to build loyal customers who, once they learn what they can do with their computers, are more inclined to stick to the Mac system and to recommend it to others.
Customers who are new to Mac will be told about the One-to-One program and reminded that it includes a free transfer of data from your old PC to your new computer. A few months ago the One-to-One classes were brought from the back of the store to the front of the store. Now anyone who passes by the entrance can see these ‘personal transformations’ taking place every day.
Showcase the Technology. When you enter the store, an employee greets you and takes your information using an iPad. An iPad is positioned next to each Mac that explains the product and also allows the customer to contact a specialist who will be right over to help. If you’re ready to buy a product, an Apple employee will check out with a handheld Easy-Pay system. The fact that One-to-One workshops are now held at the front of the store allows customers to see all of the things people can do with their Macs. This all falls under “showcasing the technology.”
In most stores the magic is hidden from view. Apple brings it to light to inspire your imagination.
Create Wow Moments. One Apple specialist told me his boss had recommended that he read one of my books, The Presentation Secrets of Steve Jobs. He said the chapter on creating wow moments within ten minutes of a conversation was a technique he brought to the Apple Retail sales floor. Through the probing process, sales specialists can decide what feature of a product will have the most impact on a customer. For example, one day I was standing next to the iPad table with my two young daughters. It didn’t take long for the specialist to shift the conversation to the “secondary customer” who might not be buying the product but who influences the purchase decision. “Watch this girls,” he said. He tapped the screen and, conveniently, the movie Tangled began playing. As soon as my daughter, Lela, yelled out, “Rapunzel!” I knew we were hooked.
In recent weeks I’ve been interviewed for several publications and television shows on the topic of the Apple Store. One reporter created a slideshow, featuring other brands that are copying the Apple Store. Many retailers are attempting to mimic the open, uncluttered design of the Apple Store. But Apple will be the first to tell you that design is only a small part of the success. As someone at Apple once told me, “We strive to inspire customers with every visit so our stores are a happy place to shop, to learn, to create, to get help, and to visit over and over again.”