Standing Out From The Crowd

Apple’s finest moment leads to big mistakes.

From a totally neutral perspective, Apple appears to believe that “the customer is always right,” adapting to their customers’ needs and attempting to accommodate every request. Apple’s desire to appease their most loyal customers, however, may come too late. The company has received multitudes of negative press since the iPhone launch, disappointing many loyal Mac addicts.

As I mentioned in a recent article, Apple is famous for developing and marketing stylish and useful products for a very specific (and passionate) public. Apple Evangelists are some of the most loyal customers around. They yearn for innovation and inventiveness, long for something special and different and, more than anything, love Apple for being the technology industry underdog that beats big corporations at their own game.

When Apple decided to enter the cell phone market, they had it made: a promising product, winning usability concepts to shake the wireless status quo, and millions of customers willing to buy - at ANY price.

Unfortunately, the wireless industry is dominated by what Apple customers call “the big bad corporations,” and to make the iPhone dream even possible, Steve Jobs cut a deal with one of the big players. Many Apple enthusiasts viewed this as selling out. That alone, however, was not enough to shake devoted Apple followers’ faith in their beloved company. The general consensus was that eventually the iPhone would be available on other networks and then all would be swell. Until then, thousands of early adopters were willing to cope with the “evil” AT&T as long as they could have the great gadget before everyone else. However, in their quest to enter a new market, Apple has taken their customers for a wild ride.

1. Apple announces iPhone’s price tag.
   • Yes, it seemed too high for a just a phone, and the tech community flooded the Internet with analysis of the iPhone’s shortcomings, but Apple’s early adopters were willing to pay to be the first to have the new gizmo. For true Apple fans, logic doesn’t play a role, and technical limitations are just, well, technicalities.
2. The actual launch day reveals all the shocking differences on each side of Apple’s arranged marriage with AT&T.
   • Everyone knew that Apple and AT&T were incompatible, but no one expected to see it play out so quickly. Even so, stores are flooded with customers, and iPhone sales exceed analysts’ expectations. Nevertheless, Apple advocates start to feel troubled and worry their beloved underdog is becoming too “corporate.”
3. Pressed by customers’ complaints and words from the competition, Apple capitulates and cuts iPhone prices by $200.
   • Let’s face it; the original price was a bit unreasonable. The 4G version was a lame duck, but if there is a company known for placing high bets and sticking with them until the end, it’s Apple. Customers and early adopters who bought the 4G version in the first day were left with an expensive discontinued product with virtually no commercial value a mere 2 months after its release. Angry discussions run amok over the Internet, and the once euphoric Apple customer experience is replaced with feelings of betrayal and deception. Lawsuits start to pour in.
4. Realizing that they were alienating their most loyal customer base, Apple attempts to correct their mistake by issuing a $100 credit to all early adopters. The Mea Culpa was published in a Letter to all customers.
   • The letter is honest and recognizes mistakes while promising to do better. However, for many it’s “too little too late.” Those who waited all night to get their iPhone on the first day at a premium price wanted status and recognition. The credit was half the price cut and seen by many as “hush money” or pocket change. But customers were not as offended by the price cut as by the value cut.
   • Apple could have easily corrected the situation (or avoided it altogether) by giving early adopters something of equal value, like a limited-edition accessory, exclusive membership to a community with benefits, exclusive ring tones or even just a stylish T-shirt saying “I was one of the first to have an iPhone” signed by Steve Jobs. Practically anything that gave a sense of being special or unique would have been more appealing than money.
5. Even before things started to cool down, the technical community hacked the iPhone, opening it up to third-party applications and use on any network. This means users now have the freedom to choose their provider and download new applications a good two years before Apple’s exclusive AT&T contract expires.
   • Hacking the iPhone takes skill. While a few power users unlocked their phones, the great majority were happy to keep the service they signed up for. Apple, however, not being accustomed to such treatment, didn’t take news of the hacks well. Concerned with potential future problems and the buzz around these issues, Apple posted a news release perceived by many as a preemptive attack against Apple Modders.
6. Apple runs to release a major update that “fixes” security issues, preventing iPhone owners from using other networks and locking out third- party applications. The problem is that the release also completely locks some devices, turning them into expensive, unusable gadgets, regardless of if they were hacked in the first place or not.
   • This was a real blow. The battered Apple Evangelist is appalled by the finger pointing and recklessness. Moreover, Apple’s fight hurt standard customers who can’t use their “factory fresh” iPhones anymore.
   • Perhaps Apple was pressured by their exclusive partner (AT&T) to produce an update before it was sufficiently tested. One of Apple’s brand promises is to have a well-built solution, free of bugs and upgrade problems (or don’t you remember all those cool TV Commercials?) Is Apple yielding to market pressure and releasing untested updates that cause their devices to crash? How very Microsoft of them.
7. Despite efforts to block the tech community from opening the iPhone, several new hacks were quickly available promising to open the new updated devices and even unlock the “bricked” ones.
   • What can I say? It’s a losing battle Apple may not be equipped to fight. Apple is accustomed to being loved and having a large fan base so it comes as a shock now that those same loyal users are speaking out against the company they helped make great.
8. Apple recently announced they will open the iPhone for third-party development.
   • Again, while I praise their responsiveness and willingness to comply with customers’ wishes, it just doesn’t feel very genuine or like the old Apple I knew and loved. It seems like they are being forced to react rather than doing so willingly and, believe me, customers can tell the difference.

All in all, Apple is still a strong company with loyal customers and supporters. They’ve undoubtedly made some mistakes while attempting to break into a new field. However, I still believe the iPhone is a great achievement and Apple brings some much needed fresh air to an otherwise stale and saturated market.

Apple’s recent follies teach us two very important Customer Experience lessons: First, when it comes to customer approval, you cannot rely solely on past deeds and reputation. In fact, a good reputation only raises the bar, forcing customers to hold you to a much higher standard. Second, you need to know and understand your customers’ needs and motives and consider them before you make decisions.

See Also: Even Mr. Popular Needs to Focus on Retention
Originally published at Vox Inc Customer Experience Articles