Apple offer their Apple Visa card which allows customers a Visa card with no annual fee and no interest fee on their purchases for up to 90 days. Additionally, they are entitled to earn iTune reward points with every purchase. These aids in encouraging consumers to purchase goods, as they do not have the financial constraint of paying immediately.
The Online Apple Store makes it incredibly easy to purchase Apple products 24 hours a day, 7 days a week, especially with their 1-Click feature (Apple, 2006). It is a convenient tool that allows a customer to purchase anything at the Apple Store with a single click of their mouse once they have entered their bank details into the system.
Competitors
One of Apple’s main competitors is the computer manufacturer Dell. They are extremely successful at targeting customers with 0.5 percent of site visits ending up in sales, which is a huge proportion for an internet site enabling them to own the majority of the online computer sales market (Holzner, 2006). For their larger customers they offer a special secure site, to work with (Holzner, 2006). However, while Apple is striving to improve their customer service, Dell’s customer satisfaction is falling. An article in eWeek states that ‘ when it comes to computers, good service is harder to define’ however they are the leaders when it comes to their customer service packages in relation to price. They offer a cheaper computer repair service compared to their rivals Apple, HP and IBM yet there is little differentiation between the other services which Apple provide for their customers compared to those of Dell. Like Apple, Dell has installed automated diagnostic services onto their hardware products, which provide links to information on how to solve problems, which may arise. This service allows Apple to cut costs by allowing customers to solve problems, which may arise whilst at home, rather than sending their hardware away to an Apple technician.
Small firms tend to be able to offer a superior customer service, as they tend to be able to serve customers more directly and personally than large companies such as Apple. Therefore, Apple must ensure that their methods of customer service are as effective as possible.
Appendix 1.1 highlights issues, which need to be taken into consideration by Apple. It shows the need for customer selection at each stage of customer relationship management. Regarding the e-business within Apple’s organisation they need to select the appropriate customers from a certain segment (Chaffy, 2002). For example, Apple operate in the high priced computer technology market so they will want to target those with high disposable incomes. The chart emphasises the importance off adding value at each stage, which refers to ways in which Apple could distinguish their services from their competitor’s products. By providing customer service facilities online and therefore adding value to their services Apple can provide customer acquisition as it makes more services available to customers whilst also allowing customers who might otherwise not have had access to such services gain access (Ludenwig, 2006). Apple could achieve greater customer interaction through online customer service questions on their website.
What information and facilities are provided to support selling and customer service?
According to a survey released in August 2000 by the Gartner Group, even the popular e-retailers fail to provide high-quality online customer service. Of the top consumer e-retail sites, Gartner did not rate a single one ‘good’ or ‘excellent for online customer service (Oz, 2002). This is due to retailers not using technology to their best advantage for providing the latest means of customer service such as helping customers make purchasing decisions, receive prompt answers to their questions and obtaining satisfactory help both with the service and the products they purchase (Oz, 2002).
There are various facilities to support customers in purchasing the Apple products. The main way of purchasing the Apple products is via the Internet, and there are systems in place to ease this process for the consumer, such as clear visible links to each stage of the purchasing process. In order to increase customer focus and thereby enhance customer service, a company has to know more about their customers and their needs, and be able to act on that information (Looy et al, 2003). Apple is able to achieve this by keeping records of their customer’s purchases and provide a feedback area to determine whether customers are fully satisfied (Apple, 2006)
It is extremely important for Apple to satisfy their customers so that they achieve customer loyalty and remain reputable. Customer relationship management is a key element to e-business as building long-term relationships with customers is essential for a sustainable business (Chaffey, 2002). If the expected performance matches customers expectations, then the customer will be satisfied. If it does not then they will usually not use the companies services again. With Apple, they would lose sales to their competitors such as Dell.
Apple offer discounts to local, state, and government employees and agencies. Most members and staff at schools, colleges, and universities are eligible for educational discounts, which increases their sales, as this is a large market. They offer their customers the chance to subscribe to Enews, which provides regular updates on Apple products. Appendix 1.2 is an example of the e-mails, which are distributed out to those who subscribe for the service. The e-mails include advertisements of new products, special deals and information on the direction the company is taking (Apple, 2006).
If an item is ordered and happens to be out of stock, Apples Customer Support team will monitor the order daily and will notify the customer with the revised estimated shipping date via e-mail.
Apple provides a 24-hour on-line Order Status browser to allow their customers to monitor the progress of their order themselves which reduces the amount of e-mails and phone calls to the Apple call centres regarding purchases made (Apple, 2006)
Apple is committed to their customer’s satisfaction. If they are unhappy with their product for any reason, then the customer support team will always try to rectify the problem as long as it is within 14 days of delivery (Apple, 2006). If customers are satisfied with the service they receive from Apple they will refer other customers to our business and so it is extremely important that Apple deal with their customers appropriately throughout the whole purchasing process.
Dell collects information continually and directly from its customers and places huge emphasise on the Internet as a channel for information in connecting with its customers. Dell was a pioneer in going to the Internet to sell computer technology and today is one of the highest volume sites on the Internet and gets over 2 billion hits per quarter. Dealing directly with customers enables Dell to provide fast feedback to their suppliers, a benefit they do not get from other computer companies. This allows suppliers to make appropriate improvements or adjustments to their products and methods of distribution if required. Many company, including American Express now offer a link on their website to automatically connect to a phone line and contact an advisor at any stage of the purchase process (Holzner, 2006) so customers can receive instant assistance.
Apples customer services include their AppleCare Protection Plan which is a comprehensive service and support that gives their customers three years of telephone access to Apple technical experts, a diagnostic CD, TechTool Deluxe from MicroMat, three years of Apple certified repairs, both parts and labour and cleaning of products (Apple, 2006).
If a customer has any queries to make, there is a whole section within the website which has contact details for various departments within the company. A number of companies now offer online forums where customers can speak to each other and leave feedback and comments on the company’s products and services.
Many consumers avoid Internet shopping because they prefer human contact when purchasing goods, especially luxury items such as a Mac computer. To solve this, Apple allows customers to speak with a customer service representative by clicking on a link with contact details.
Disadvantages of online customer service
Although the Internet offers opportunities to reduce the costs associated with providing customer service, it is a concern that an increase in the use of the Internet may consequently place additional demands on a company. Web-based technology is increasing customer expectations concerning the availability of customer services. According to McGaughey (2003), ‘Today’s consumers do not just expect a high level of service, they demand it’ (Levenburg, 2006). Internet users expect to be able to find information regarding certain products. Consumers also expect access to information regarding ordering, payment methods, tracking purchases, and delivery instructions (Levenburg, 2006).
Although website use is attractive to companies there are risks associated with selling through this medium. Security is a great concern to customers when buying over the Internet, especially with large transaction sums such as paying for an AppleMac. To combat this customer concern Apple have installed a secure way in which customers access their account and make transactions by directing customers to register on the Apple site initially and then sign in each time they access the online store. Once they have registered they can sign in easily with their unique username and password each time they access the site. This password protects customers from unauthorised people purchasing items using their bank details. By registering their details onto the site, as well as being able to purchase products easily, Apple can determine what their needs are and inform them via e-mail or text about new products and discounts which they would be interested in.
Recommendations
Apple are an extremely successful company both from retail sales and online sales. However, with the growing demand for high quality customer service online Apple must implement the necessary system whereby their customers needs are satisfied. They offer luxury products and their customer service should match this. Although there are measures already in place, Apple need to create a more personal service whereby, the customer feels cared for. I feel that it would be beneficial to Apple to implement a service such as the one on the American Express website where, customers can be automatically connected to a phone line with a click of a button to speak to an advisor. I feel the area in need of improvement is the customer integration stage, they could improve this by creating a forum where customers can leave feedback on their experiences with Apple and offer advice to potential consumers. If other customers have been satisfied with the services then other customers would be more inclined to purchase online.
Bibliography
Chaffey, D (2004) E-business and E-Commerce Management, 2nd Edition. Prentice Hall, McGraw Hill Companies
Holzner, S (2006) ‘How Dell does it: Using speed and innovation to achieve extraordinary results’
Levenburg. N, Klein, H (2006) Delivering customer services online: identifying best practices of medium sized enterprises. Vol 16.Issue 2.pg 135-155
Business Source Complete. Blackwell publishing
Loey, B. V, Gemmel, P, Dierdonck, R.V (2003) ‘Services Management: An integrated Approach’ . 2nd ed. Prentice Hall
Miles(1999) New reality forcing direct pressure retrieved from: retrieved on 1st December 2006
Seager (2006)Internet shopping reaches 10% of retail sales retrieved from on 1st December 2006.
Turban, E, King, D, Lee, J, Warkentin, M, Chung, H. M (2004) ‘Electronic Commerce:a managerial perspective’, Prentice Hall
Oz, E (2002) ‘Foundations of E-Commerce’, Prentice Hall
Ward, S (2006) Customer service. Retrieved from: on 2nd December 2006
Appendix 1.1
Three phases of customer relationship management (Chaffey, 2004)
Appendix 1.2
