apple case study answers

Apple Case Study

Executive summary, introduction, measuring capability performance, options, recommendations and implementations, list of references.

Since Apple was established in mid 1970s, its popularity has become immense especially in computer technology industry. Its full potential was realised when it shifted its focus from marketing and promotion of computer products to development of innovative industrial design in modern electronics, unique hardwares, operation system and application softwares and services. It provides customers with new products and solutions that are easy to use and seamless integration.

The relevant competitive models chosen for this assessment includes the Michael Porte’s five forces such as entry of competition, threats to substitutes, bargaining power, power of suppliers and rivalry, SWOT and Industrial analysis as well as micro analysis in order to assess Apple Inc. strategic capabilities and suggest future directions for the business. Apple assessment also analyses the results of a study presented to examine how it utilises customer satisfaction data obtained from formal feedback mechanism.

Company background

Apple was founded in 1970s by Steven Jobs who then became the company CEO. Apple first started as a computer company in 1976 and was fast recognised for its intuitive adaptation approach of graphical user interface that saw the adoption of the first mouse and first onscreen windows.

Steven Job innovative approach focused more on specialised products and by 2001, its full inventions came into play with the introduction of iPod, a product that ranked top in the market leader in music players. Eventually, iPhone came into play in 2008, followed by iMac, iPad and iTunes which have also been widely successful. This meant that electronic products combined with eminent good customer support throughout its product base were slowly becoming the company’s primary objectives.

Summary of Macro Analysis

Macro analysis also known as PESTLE is an analysis of the external macro environment in which a business operates. PESTEL analysis includes factors such as political, economic, social, technological, legal and environmental issues. For a detailed analysis, the following table illustrates the macro environment of Apple Inc:

Apple Case Analysis

Apple ranged top in customer satisfaction with phone-based technical support, feedback, face-to-face communication, email communication, and information exchange in the American Consumer Satisfaction index (ASCI) in the second quarter of 2009. These companies were credited for offering the best technical customer satisfaction service within the Personal Computers category with a base score of 77 on a 100 point scale and earned 83 points in the second quarter of 2006.

Business analysts have argued that the companies’ ability to focus on product innovation and customer satisfaction has won the company loyal customers compared to other PC vendors. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy.

Van Amburg, the managing director of the American Customer Satisfaction Index (ACSI) argues that customers from other service providers were very frustrated with company’s customer service despite the quality of its PC hence loss of loyal customers and the services continued to deteriorate as years went by (Moore & Knight 2010; Keizer 2009).

In ensuring quality satisfaction in information collection, Apple launched Consumer Privacy Policy that ensured the collection, use and disclosure of personal information regarding customer issues are kept at optimum security. The company pledges to safeguard personal information collected when visiting the company’s website, purchase of products and services and when a customer calls the sales team or support associates.

Personal information collected here is aimed at helping the company deliver higher customer service and provide convenient access to company’s products and services. Information collected from customer’s reviews also helps the company implement and post the latest product announcement on special offers, software and events (Apple 2010; Levitan 2004; Prasaad 2009).

Summary of Industry Analysis

Porter’s analysis focuses on the threat of new entrants, bargaining power of suppliers and buyers, power of substitutes and rivals on profitability in an industry.

The following table presents Porter’s five forces analysis of the micro environment of Apple Inc.

The industry analysis of our company in the market displays strong competition in the computer technologies and electronics. Apple maintained its competitive edge by progressively innovating product designs and operational execution.

Its product lines were also diversified and supplied its products to retail stores and eliminated third-party retailers. The company also opened up to 247 stores including 19 internal locations averaging to $29.9 million in sales revenues. The company has numbers of loyal, & the customer base reports the permanent growth (Keizer 2009).

Suppliers have helped Apple diversify their products. Apple entered into a multi year agreement requiring its major key components that included dynamic random access memory DRAM, LCD displays, NAND flash memory and microprocessors that included partners such as Hynix Semi-conductor, Intel Corporation, Samsung, Micron Technology and Toshiba Corporation. It also partnered with other corporations internationally to ensure final assembly of its products are concentrated on quality issues (Keizer 2009).

On market research aspect, Apple was reported to collect personal information on various occasions for market research purposes. This information is aimed at gaining better understanding of customers needs, improve products and determine how best to provide useful information (Apple 2010; Hewlett-Packard Development Company 2010).

Apple partnered with other service vendors such as MobileMe and iTunes stores to help in collection of information by requiring customers to customer’s to create an “phone company ID” before purchase of products.

The ID is strategy is designed to help customers have easier access to web services and saves them time since they don’t have to give their personal information when requesting for services. The procedure requires creation of personal profiles by adding the name, phone number, email address or credit card number together with a suitable password that will be used to access the profile.

Once the signing up procedure is completed, the customer is allocated personal ID and a password that the system generates automatically. Therefore next time the customer enters the website to re-purchases products is welcomed by personal greetings by mentioning his name and is able to access up to date information regarding the product purchased which can be used wherever the client goes (Apple 2010).

In order to survive in the competitive environment, company’s have to device a number strategies to beat their competitors like changing the price of the product-which is in fact a temporary solution, improving product features- key to success, creatively using channels of distribution and exploiting relationship with suppliers. When we look at these examples, brand recognition seemed to cut down costs of advertisements.

On this perspective, Apple diversified to digital consumer electronics such as iPod, iPhone, iMac among others widened its product markets. Apple dominated computer markets introducing itself a premier provider of technology solutions for educators, web designers and graphic artists, to digital entrainment company. The software iPod was later integrated into windows version of iTunes making it easier for everyone one to purchase and use (Keizer 2009).

Apple introduction of feedback system and outreach programs enabled customers to report on defective machines and the company to attend to problems before they occur. For example, one of the Company’s products “iMac” was widely reported for to be giving clients problems and the company responded by giving 15% refund bonuses to all faulty 27 inch iMac in the UK and was also reported to extend $300 apologies to all its aggrieved customers in the US.

In resolving the issue, the company responded quickly by offering free repairs to all the affected machines and launched a support page where it described how minor problems could be resolved and the resulting warranty extension for each affected machine. The company also reimbursed customers who used their own money to repair the faulty machines and advised them take their drives to official Apple repair channels (Moore & Knight 2010; O’Reilly & Anderson 1980).

On bargaining power of suppliers’ aspect, Apple’s primary segments included America, Europe, Africa, Japan and Middle East and other retail divisions Italy, Canada and the United Kingdom. It offered its customers wide range of products and invested heavily on R&D year after year. Apple’s products were distributed all over US retail stores where customers could easily access and report of defective devices (Mank & Nystrom 2000, p.504).

Summary of Internal Analysis

Internal Analysis also known as SWOT analysis determines company’s competitors and develops sales & marketing strategies for the company that allow it to achieve its marketing & strategic objectives.

The SWOT Analysis of the Apple Inc. position in the market is necessary for the development of the marketing plan.

Resources Analysis

Amidst the financial crisis, Apple continued to introduce strongest products lines, with most talented employees and best customers with sales revenue totalling to $10 billion in quarterly revenue of 2009 and $25 billion in cash safety bank with zero debt. Demographic & socio-economical factors like population distribution changes & increase/decrease in income levels of social group also affected the company to a considerable extent (Apple reports 2008; Hesseldahl 2009).

Dynamic Capability Analysis

Dynamic analysis refers to the innovative strategies a firm employs to gain competitive advantage over its competitors. In other words, what Apple is doing different that sets it apart from other companies. For instance, the company has progressively applied technological advancement and business diversification over the years.

Apple continues to diversify its product line from PCs inventions, to iPods, iPhones, iTunes and other peripherals. Also, the 2007 smart phone technology that saw the integration of wireless phone, music player, video player as well as internet browsing demonstrated how the company continues to diversify in our markets (Apple reports 2008).

Strategic Capability Analysis

Apple’s strategy to integrate Intel-based iMac desktop and the MacBook Pro portable softwares increased its company’s market share. Also, the introduction of feedback system and outreach programs that enabled customers to report on defective machines seemed to have gained the company a competitive edge over its competitors. The company also introduced support centre strategically designed to attend to software problems before they occur (Apple reports 2008).

Apple’s recent merger with software developers and leading voice-entry technology providers demonstrated its strong command and reputation in information technology. However, Apple should take adequate time in testing its products before rushing to introduce them to the markets like case for MacBook Air that left many customers disappointed (Apple reports 2008).

Gap analysis and assessment of current strategy

Gap analysis is a methodology that helps a company identify gaps and decide upon marketing strategies and tactics. The company has moved beyond personal computer industry to music, videos, movies, and television. Diversification is in it itself a good marketing strategy, but the company should concentrate on development of quality products to cut down on increased numbers of defective products and recalls.

Apples hiring John Sculley from PepsiCo spearheaded marketing and operations of the company while Steven Job focused on technology that lead to the introduction of more creative products like Macintosh in 1984. The new CEO enabled breakthrough in electronic products in terms of elegant design and easy use. The company should employ the same strategy in future to in employing competent workforce that will turn boost company sales revenues.

How does strategy match the macro environment?

For Apple, there is a large gap between product strategy and socio-economic and demographic changes. Keeping in pace with technology helped the company gain competitive advantage over its competitors and the uniqueness of goods and services offered facilitated the further strengthening of market position. However, its inability to adjust to socio-economic and demographic changes might undermine its market position in future.

How does strategy match the industry environment?

Apple engaged in a head to head competition with Dell in the computer markets with company CEO Steve Jobs claiming that market shares weren’t everything. This statement is in itself contradictory since company’s engage in business activities for profits. Dell was able to dominate the markets due to its efficient supply chain management although Apple outperformed it in inventions and other metrics. Apple should look into fixing sufficient price flexibility and adjustment to socio-economic changes.

Since compatible software were introduced in the markets, IBM prices dropped and Apples costs for R&D were higher industry costs since the company spend a considerable amount of its sales revenue on R&D. Scully innovative efforts were not enough to sustain the company’s poor performance. Apple could have taken time to study its markets demands before heavily investing in unprofitable deals. Since Michael Spindler came into play in 1993 introducing PowerMac, Apple moved to price-performance edge.

The new CEO’s strategy was to let other companies manufacture Mac clones, a strategy that saw many clones stealing 20% of the Macintosh unit sales. For this case, Apple should be seeking a CEO that upholds their key capabilities and strengths, whilst being able to improve in other areas that are deficient (Mank & Nystrom 2000, p.501).

Apple’s current strategy of launching more new products to expand the markets should be sustained. However, the company should also try to promote its products through media advertising and offering products at discounted price to increase the satisfaction level of the customers. Apple never seemed to experience intense competition since it had strong market power and had the ability to introduce new products.

Its strategies to beat the markets severely stretched its budgets that amounted to further losses. For example, when Macintosh was first introduced in the markets quickly became people’s favourite with large graphics but had slow performance and could not be integrated with many softwares in the markets. NeXT Computer introduced after Macintosh proved costly and did not yield the company any profits. For this case, Apple should incorporate through market analysis to avoid sipping in market shares.

Apple., 2010, ‘ Apple Customer Privacy Policy ’. Web.

Apple reports fourth quarter results, 2008. Quarterly results. Web.

Hesseldahl, A., 2009. Apple’s impressive quarterly numbers . BusinessWeek. Web.

Hewlett-Packard Development Company, 2010. Overcoming the no. 1 challenge in data center transformation . Web.

Keizer, G., 2009. Apple still can strive, sans Job. Computer World, 56 (2), pp.1-4.

Levitan, B., 2004. Improving customer loyalty through proactive communication. Consumer Interaction Solution . Web.

Mank, D. & Nystrom, H., 2000. The relationship between R&D spending and shareholder returns in the computer industry. Management of Society Proceeding , 20, pp.501-504.

Moore, C. & Knight, D., 2010. Apple Retains Lead in Customer Satisfaction, iMac Screen Problem Resolved, 64 GB for Mac Pro and More . Web.

O’Reilly, C. & Anderson, J., 1980. Trust and the Communication of Performance Appraisal Information: The Effect of Feedback on Performance and Satisfaction. Human Communication Research , 6, pp.290-298.

Prasaad, S., 2009. Establishing successful customer relationships through effective communication: An Indian perspective. Marketing and Management Communication , 64, pp.1-71.

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How Apple Is Organized for Innovation

• Joel M. Podolny
• Morten T. Hansen

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

• Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
• MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

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Apple Inc. – Case Solution

This case study on Apple Inc. delves into the strengths of Apple as a company and as an organization. It discusses the company's competitors and how Apple can overcome its threats within the industry. It also looks into the weaknesses of the company and how it can get past the issues the company is facing.

​Frank T. Rothaermel Harvard Business Review ( MH0027-PDF-ENG ) October 06, 2015

Case questions answered:

• Give an Overview of Apple Inc. as a company.
• Examine the problems, symptoms, and variables of Apple Inc.
• Give a proper SWOT analysis of Apple Inc.

Not the questions you were looking for? Submit your own questions & get answers .

Apple Inc. Case Answers

Abstract – apple inc..

Apple, Inc. was founded by Steve Jobs and Steve Wozniak. The company designs, produces, and markets a number of computer software, hardware, and individual computer products.

The company is dedicated to bringing a better private computing experience to scholars, educators, and customers across the globe through creative hardware and online offerings. One main advantage that Apple possesses is its system of operation, though it has failed to persuade the globe of its superiority.

Problems, issues, variables, and relationships related to Apple Inc. will be discussed throughout the case study. Symptoms and critical issues will also be examined.

Finally, a SWOT analysis, which is a strategic development tool to assess the organization’s strengths, flaws, chances, and threats to the company, will be analyzed.

Introduction – Apple Inc.

Apple Inc. is basically an American-centered organization that makes and sells computer software, electronic as well as online services. The corporation was established by Steve Jobs, Ronald Wayne, and Steve Wozniak in 1976.

Apple is the second-largest cell phone maker and the major information technology company across the globe. Apple’s most common products consist of their line of Macintosh private computers, iPod moveable media players, and the iPhone.

Apple Inc. sells its goods to specific clients, small and large-sized companies, educationalists, and customers in the enterprise, government, inventive, data technology, and methodical markets.

The company’s mission is to make sure that customers are rendered the preeminent experience by donation of easy use of software, inventive hardware, and smooth product design.

The corporation is driven by numerous goals and intentions. Among them is ensuring the ultimate user knowledge to all customers through its technologies and inventive products.

In addition, Apple Inc. aims to maximize sales volume by introducing new products, opening many stores, making use of smart market tactics, and reforming production.

Apple Inc. mainly has a ranked managerial edifice with prominent local features and a feeble functional matrix.   There are a number of Apple’s key strategies that are rethinking the desire for advertising, avoiding price wars, and designing a good consumer experience.

Apple’s key players are investors, communities, competitors, customers, and staff. All the players are treated in the best way possible because they are accountable for the growth and accomplishment of the organization.

Apple’s key competitors include Google Inc., Amazon, Dell, Lenovo, Samsung, Sony, and Microsoft. The conceptual paper discusses problems, issues, variables,   symptoms, and isolated critical issues. The paper analyses the SWOT analysis of Apple Inc.’s organization and recommendations.

Problems and Issues in Apple’s Organization

Apple’s stock has dropped in recent months owing to a combination of trade strains, iPhone reports, and more. The company has faced the biggest problems and issues, which include navigating trade uncertainty (Jinjin, 2013).

Tariffs are a possible thorn in Apple Company that has been kind to the organization’s stock. Two, the company was facing battles with QUALCOMM.  Apple Inc. has been locked in a long and nasty legal spat with QUALCOMM that began over licensing rates and obvious fees.

Variables in Apple Inc.’s organization

There are many variables when estimating Apple’s iPhone’s three-monthly revenue.  The biggest is the number sold; however, their average trading price and channel fill have an outcome.

Variable cost changes with output. The costs mainly include the cost of goods sold as well as other overhead expenses (Ferreira, 2019). The cost changes with production change.

The table below shows the variable cost of Apple Inc.

Symptoms for Apple Inc.

• The organizational culture is mainly for original innovation. Apple’s cultural types focus on enhancing a great level of creativity that comprises innovation and outlook, which tasks convections and morals (Onyusheva, 2018).
• It has top-notch excellence. The organization and employees are the best. It practices quality labor in the market.
• It has a weak functional matrix. This describes collaborative interactions among the different components of the organization. Through this symptom, the organization maintains powerful innovation processes that support the development of the brand and the utilization of premium pricing strategies (Lee, 2018).

Critical issues in Apple Inc.

Apple is currently facing three major issues:

First, the mobile phone market has become the PC marketplace. Customers stopped getting excited about the new laptops a long time ago, which is also occurring in the smartphone market. This has contributed to issues in the organization (Mas, 2018).

Second, introducing the next thing is difficult.  Apple Inc. changed the world, particularly with the iPod and iPhone. Other products have also been successful in an absolute sense. If iPhone sales continue to slump, it will be very hard to come up with a new device.

Finally, services are not a panacea. The main issue for Apple Inc. will be substituting high-margin hardware with adequate service revenue to curb the further decline in profitability.

SWOT Analysis

Apple’s SWOT analysis scans the organization’s relevant strengths, weaknesses, opportunities, and threats.

• Globally Iconic – Apple is a reliable organization, especially with individualized, innovative computers and cool technology strategies. The company has billions of consumers with stable growth.
• Top Technology – The organization was the first company to present some of the most groundbreaking goods that have transformed the realm (iPhones, iPads).  It is still strong-minded to shape and skill better, more skilled expertise strategies.
• Brand of Choice – Apple Inc. is among one of the most needed brands in agencies. Apple has a comprehensive commerce page that offers the best quality technology responses for all other organizations (Jinjin, 2013).
• Proficient Exploration – Apple puts enthusiasm into its product strategies. A careful study is instigated, as further study is done to aid in understanding consumers and desires.
• Customer consideration – Apple consistently plans its items with an emphasis on purchasers while keeping their brains later on. They generally attempt to envision the things that even the customer has not envisioned at this point. According to Steve, occupations “on the off chance that you ask the customer what he needs when you give him something very similar, he will need something different.” This philosophy is the explanation of progress for Apple.
• Strong Media Content – With iTunes, Apple made a success story in recent years.  This is due to the store where one can get music, videocassettes, short films, television displays, podcasts, audio records, and ebooks. They developed a unique place in the numerical market limited to Apple products.
• Loyal Client Base – The major Apple quality is its dedicated client base. These clients once in a while change to other portable brands. The primary explanation for Apple’s faithful client base is its one-of-a-kind client experience, effortlessness, and advancement. Apple has an outclass of about 88% brand dependability over the American and European nations.
• Advancement and Simplicity – Straightforwardness is the DNA of Apple. “Apple changed the matter of PCs, music, phones, and Tablets in light of the fact that everything spun around and looked for straightforwardness.” Apple items are basic and simple to utilize. Apple is constantly considered as…

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Apple Inc. in 2020

• Format: Print
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About The Author

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Apple Inc. in 2020 – Select Market Data

• Apple Inc. in 2020  By: David B. Yoffie
• Apple Inc. in 2020 – Select Market Data  By: David B. Yoffie

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Apple CRM Case Study

• Apple Timeline
• Apple’s CRM Strategy: the Secret to Success
• Top 4 Ways Apple Uses CRM

1. Knowing its customers

2. anticipating customer needs, 3. stores focussing on customer experience, 4. branding that speaks to a generation.

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“I’d rather be a pirate than join the navy.”

To this day, Apple co-founder and former CEO Steve Jobs’ famous words define the company’s attitude and ambitions.

And, though Apple is most well-known for its innovative founder and ethos for doing things differently, the real secret to the tech giant’s success is something all successful brands do well. We’re talking, of course, about Apple's CRM (customer relationship management) strategy – how Apple keeps its billion-strong customer base happy, hungry, and coming back for more.

And it must be doing something right. Because despite eschewing traditional forms of customer retention – Jobs was famously opposed to market research, and Apple still doesn’t run a formal loyalty scheme – the company has built one of the most enduring, exciting, and enigmatic brands of all time .

Let’s take a look at Apple’s CRM case study, and explore how your business can learn from the best.

The Apple story

1976: Steve Jobs and Steve Wozniak begin testing the first Apple computers in the basement of Jobs’ childhood home in Los Altos, California.

1980: Apple becomes a publicly traded company.

1983: Apple launches the Lisa, though it sells poorly and is plagued by slowness and compatibility issues.

1985: Steve Jobs resigns.

1994: Apple releases its first powerPC-based desktops and notebooks.

1997: Steve Jobs returns to Apple.

1998: Apple releases the iMac. This is followed by iTunes and the iPod (2001) , the MacBook Pro (2006) , and the iPhone (2007) .

2011: Apple becomes the world’s most valuable publicly traded company, though this triumph is marred by Jobs' death in October.

2014: Apple launches both the Apple Watch and Apple Pay.

2020: Apple is worth $2 trillion.

2021: Apple partners with Product Red (RED) to combat HIV/AIDS and safeguard vulnerable communities from COVID-19.

2022: On the first trading day of 2022, Apple becomes the first US company ever to reach a market value of $3 trillion.

2023: The start of 2023 marks another milestone for Apple, as it reports that there are over 2 billion active Apple devices.

The years between 2020 and 2022 were good ones at the office for Apple, as it grew its revenue from $274.5 billion to $394.3 billion .

Apple’s CRM strategy: the secret to success

“You’ve gotta start with the customer experience, and work backwards to the technology.”

Steve Jobs , Apple co-founder and former CEO

You can boil Apple’s CRM strategy down to just two words: Apple ID . Let’s explain.

When you take your first Apple product home, you’re asked to create an Apple ID – a unique profile that syncs across all Apple devices you own. This ID allows Apple to remember your purchases with the Apple Store, and provide personalised recommendations for music and films. You can even share content and cloud storage with other members of your family, and monitor your kids’ purchases.

For Apple, it’s a self-renewing, seemingly limitless data set, allowing it to constantly tailor its services and re-engage customers with handpicked deals, discounts, and products. Not only is this targeted marketing done effectively, but it also engenders a sense of loyalty and familiarity with Apple’s brand and ethos .

Apple ID, used in conjunction with Apple’s rich ecosystem of products, is the core of Amazon’s CRM strategy – and, ergo, its wild and ongoing success. But that’s not the only trick this Silicon Valley behemoth has up its sleeve.

Let’s take a look at the top four ways Apple uses CRM – and how your business can follow suit.

▶ Read more: The Best CRM Systems for Small Buisnesses

The top 4 ways Apple uses CRM

No self-respecting article would be complete without a healthy peppering of Steve Jobs quotes, right? So here are four, each one demonstrating how Apple walks the talk when it comes to its lofty CRM goals and strategies.

“Get closer than ever to your customers. So close, in fact, that you tell them what they need well before they realise it themselves.”

It’s an ambitious aspiration, but one that Apple follows through on. Apple’s consistently high NPS (Net Promoter Score) ratings indicate that it’s remarkably good at retaining its customers. Loyalty rates research from Statista confirms that 92% of iPhone users in 2022 were unlikely to change brands from Apple.

Apple’s CRM usage is a huge factor in its great customer retention. For decades, Apple has used CRM to get to know, connect with, and nurture those connections with its customers. Sending a series of emails to customers who have visited Apple stores is one of its fundamental marketing methods, however, selling new products is not the purpose of these emails. Instead, they are sent to inquire how the staff at the store handled the customer while they were being serviced. This way, the impression of being well-cared-for by Apple is remembered, forming a bond between customer and company.

Also fuelling Apple’s commanding customer retention scores is its stellar technical support. Whenever you buy an Apple product, you have the option to schedule in a tailored, one-to-one session with a specialist – exploring your new device’s best features, and fine-tuning it to your tastes.

Apple’s commitment to understanding the individual is no accident . It’s a carefully plotted out CRM strategy, and it’s paying stunning dividends.

▶ Read more: The Best Cheap CRM Systems

“[The computer] took us three years to build. If we'd given customers what they said they wanted, we'd have built a computer they'd have been happy with a year after we spoke to them – not something they'd want now.”

It’s clear Apple’s understanding of its customers runs deep. Yet, paradoxically, Jobs was famously opposed to market research . Rather, Apple’s intimacy with its customers has traditionally stemmed from the company’s empathy with their pain points and needs.

In contrast to Jobs' guiding ideas, the company's current strategy is to build lasting relationships with its clients. Apple’s CRM is programmed to collect customer data once an Apple ID has been registered. When they’ve registered, Apple’s CRM strategy is to inform and teach its customers about the benefits of owning this great Apple product.

Another way for Apple to learn about its customers’ satisfaction is by sending a survey or an NPS Apple poll after making a purchase. These surveys would gather information about the customers’ level of satisfaction or if the product is highly recommendable. Apple employees would use this feedback to their advantage and work on improving its service.

It’s this, above all, that’s driven Apple’s desire to innovate – to expand and evolve its offerings to meet not only its customers’ current requirements, but those of their futures, too.

Because if it isn’t game-changing, Apple won’t do it . The iPhone, iPod, and iPad were all ahead of their time, while iTunes was once the only legal online catalogue of songs to feature music from all five major record labels.

With Apple TV now producing original content and Apple Pay redefining how we shop, Apple’s innovation is a hallmark of its desire to grow with the needs of its users.

Want more? Discover how CRM is redefining the success of other major brands with our CRM case studies .

“How does somebody know what they want if they haven’t seen it?”

It’s a good question, and one that continues to define how Apple operates its physical shops.  Apple’s retail departments and staff are built with the individual in mind – to ensure its customers have an experience, rather than simply make a purchase. Anyone who’s ever visited one of Apple’s stores will back this up, too – they’re places of wonder, where you can explore the latest technology at your own pace.

Apple’s use of CRM in-store is a testament to its long-term mentality. An immediate sale is good, but an ongoing relationship with a customer is more profitable . By foregoing conventional sales tactics, Apple’s shops create value by encouraging browsers to love and appreciate the benefits of having an iPhone, an iPad, or the latest Apple Watch.

And, by training its employees to understand (and not just sell to ) those that enter its stores, Apple cultivates a more engaged, loyal customer base that prioritises the person, rather than the product .

Using this CRM technique helps Apple personalise its relationship with its customers. Its software archives customer profiles, which allows the staff to provide a quality customer experience.

Not only that, but when a customer comes into the store, the experience doesn’t just stay there. Apple’s CRM is used so extensively in their retail structure that every encounter gets programmed into Apple’s system. Apple automatically sends out a survey to your email after your purchase, which enables the staff to improve brand awareness and value every feedback.

“Design is not just what it looks like and feels like. Design is how it works.”

Apple is… a cool company. Whether you buy into its products or not, Apple’s pull is undeniable. Boasting one of the most iconic and instantly recognisable brands in the world, it draws huge queues at product launches, while thousands of user-generated videos online are dedicated to ‘unboxing’ Apple devices.

But Apple’s brand is more than just a byproduct of designing products that look, feel, and work well . Its ecosystem of products – each of which functions seamlessly with the rest – engenders loyalty with the brand, while rewarding the customer for choosing Apple.

Better still, Apple’s branding has succeeded where plenty of other big companies have failed – by appealing to millennials. Research shows that Apple is among the top ten brands that millennials ( and Generation X, too! ) feel feel an affinity with , and it’s not hard to see why.

With simple, stripped-back product designs, a commitment to sustainability, and a playful tone of voice, Apple (quite literally) speaks to whole generations.

Take Twitter, for example. Millennials often use this platform and Apple’s simple strategy of posting a tip of the day, which varies from images to short videos, is highly appreciated by its customers – one of Apple's most recent tweets, a tip about tidying up your desktop, garnered over 200 likes, more than 70,000 views, and a dozen replies after just a few minutes.

Importantly, the tips Apple shares are useful for everybody that uses Apple products, even if they aren’t even in need of any technical advice. Plus, when customers comment on Apple’s social posts, the company always responds. Engaging with users shows commitment to listening to what they have to say, which makes them feel valued and, therefore, boosts their loyalty.

Coincidence? Or the result of a clear CRM strategy, planned and executed to perfection? We’ll let you be the judge.

▶ Read more: How Much Does CRM Software Cost?

What's next?

To nobody’s surprise, Apple’s CRM strategy breaks the mould. Rejecting the ‘hard sell’ approach, Apple has kept the customer at the forefront for decades. Overlooking market research, loyalty schemes, and traditional forms of customer retention and marketing, Apple can sell its products on hype alone. So, how can Apple’s trailblazing CRM strategy inform your own business’ CRM targets?

Well, you need to know your customers. You have to be able to speak to them in their own language, avoiding jargon and using phrasing that will resonate with them. You need to look to the future, to monitor consumer trends, and design your products so they’ll still be relevant in the years to come.

In short, you’ll require a CRM strategy. And to execute that – and avoid the common CRM problems that come with the territory – you’ll need a CRM system like one of these:

var appWikiRequestUrl = “https://appwiki.nl”;

To learn more about what this software can do for you, check out our guide to the best CRM systems for small businesses.

Otherwise, you can get a tailored quote just for your business – start comparing CRM software quotes with us, today .

Visit our free quote-finding tool to provide us with some details about your business’ CRM requirements – specifically, your team’s size, and the specific functions you’ll need the software to perform. It takes about 30 seconds to do, and then we’ll match you with one or more carefully curated CRM providers , who’ll be in touch directly with tailored quotes. Simple!

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