Apple is perhaps the most talked about IT company in the world and has revolutionized the PC, phones and other mobile devices through both its innovative hardware and software. Its business model is being replicated or rather attempted to, by scores of companies worldwide. Few however, are looking at the Apple success story where customer satisfaction is concerned.

The University of Michigan calculates an American Customer Satisfaction Index or ACSI on the basis of a survey conducted since 1995. Apple has been topping this annual survey for 7 years consecutively, with an all time high score of 86 out of 100 this year. As always it is head and shoulders ahead of its competitors, with companies like Dell, HP, Acer etc tied at 77 and HP’s Compaq at 74. The gap between Apple and its rivals is remarkable. Though they all improved their scores, they have consistently lagged behind Apple, in fact, sinking further behind.
Apple, the maker of revolutionary IT products like the Mac, iPhone, iPod, iPad etc., has a 9 point lead over its competitors and this lead is the highest across 45 categories studied by the ACSI survey. The categories include home appliances, e-commerce, autos, airlines, gas stations etc. Part of it can be attributed to the products it offers. The broad spectrum they cover are somehow all linked through common software, and it perhaps helps to be a market leader with its leadership a brand in itself. Its retail customer experience is meticulously planned and controlled by the company itself, and this means customer service par excellence.
Besides its commitment to creating ground breaking products and providing an integrated base for them, Apple has ensured that it does not create pockets of excellence. It has managed to create an ecosystem of hardware, connected by its own software that is so very different from other IT innovations and product development. All Apple products use its own software like iOS, iTunes and Mac OS X. Other PC companies have not being able to emerge from Microsoft’s shadow and are in no way like Apple in becoming makers of consumer devices beyond PCs. Apple shook its PC-centered mind set long ago, focusing more on the needs of a typical consumer, something other companies have not done.



The Apple success story has spurred HP to take a step in a similar direction by acquiring Palm, to integrate mobile devices like tablet computers, phones, laptops and printers. It is trying to incorporate Web operating systems and handheld devices in to its existing range. However, no other computer company has done so. Market watchers sense a reluctance of these companies to walk down that road.


The Apple Stores worldwide are not just retail stores like any other. They reflect the company policy to make the customer’s retail experience a novel one, where every current and potential customer deals with Apple in a very different manner. The company’s reports reveal that Apple stores get 50 million customers every quarter and approximately half are first time buyers. There are 300 Apple stores across the globe, most of them in the US but fast spreading to other country capitals and larger cities.
Apple uses its stores to have the customer understand and experience what it means to have a range of Apple products. Though a very limited range of products is displayed on the shelves, the Apple store has a few unique features-young, geeky looking employees, interior designing sometimes similar to museums, a Genius Bar offering technical support, and even classes open for attendance to learn how to use Apple products.

Other PC companies have not quite been able to replicate this retail exercise. Microsoft has 4 retail outlets and a few more coming up. Dell has had a brief stint and Gateway did have a presence but was sold out to Acer. Though an expensive proposition, retail stores define the brand experience and work as brand managers for a company. Many companies use existing retail stores to showcase their products while Apple has a three-pronged strategy which includes exclusive Apple Stores that it manages itself, online sale of products and a few select third party retailers. This is in sharp contrast to other PC manufacturers who authorize a sales force or vendors or retail chains to showcase and sell their products.


Apple’s customer policy, giving so much importance to the customer, is different to other rival manufacturers, partly due to the way these companies have developed over the years. These companies are technology driven rather than customer focused, in an attempt to provide the best technological innovations. Thus their priorities are different, and their perception about hat is crucial for their company. Moreover they do not realize the significance of the customer first policy, and they see customer orientation as an expense more than as a return on investment. Run by technological wizards, these companies have always focused on the technology, and shunned concepts like marketing, customer orientation, needs and service. In actual fact, the customer’s perception of a company and how simple it makes technology for non technical people, is the deciding factor, and this has a direct bearing on the company’s success. Apple’s customer service being a cut above the rest, bears testimony to this fact.

Apple is the result of a singular vision, that of its CEO, Steve Jobs, who spearheads strategy for products and the running of the company. Other companies are different with conflicting approaches, politicking, fiefdoms and loyalties, competing agendas and limited resources for multiple needs. Steve Jobs leaves no scope for all this.

Apple has had problems too. A typical case in point is the recent fiasco with the antenna of the iPhone 4. “Antennagate” emerged due to the customer’s rejection of the manner in which Apple offered customer support for the antenna problems. It initially adopted a condescending approach and later had to offer free cases to its iPhone 4 customers.

This proved to be a major hiccup in an otherwise successful customer approach, and this episode made them all wake up to certain mistakes.
None of this had a long term impact on Apple’s success. Apple offers many lessons for its competitiors to learn from.

This is a Guest Post By Neil Jones, head of marketing for eMobileScan who are one of the Uk's leading handheld computer specialists with one of the largest ranges including the Motorola MC75