Wednesday, April 18, 2012

How Apple Provides Value to All Parties Involved

Typically, expensive, high-end items are sold on commission, to encourage in-store salespeople to push the product. Unfortunately, this sometimes leads to abuse by the salespeople. In order to maximize their own profit, salespeople want to cycle through customers as quickly as possible, getting more sales, and therefore, more commissions. In this case, customers are treated as means to an end, and their shopping experience may be unenjoyable. This results in sub-optimal customer value, and sub-optimal customer value on high-end items can mean lower overall sales for the company.

Apple recognized this flaw in the system, and changed the way business was done in their brick-and-mortar stores. They completely eliminated commission, so the salespeople would have no reason to rush the customers. This resulted in less pressure on salespeople and less pressure on customers, making the in-store experience a better place for all parties involved. This change in strategy rewarded Apple with the the most profitable retail chain in America.

Apple's online store is also revolutionary. The actually "Store" page is nothing special, but the rest of the site is beautiful, and what really sells the brand. Each tab on the Apple page highlights one of their products above the fold. No ads, no graphics, no long descriptions; just a photo, a positioning statement, and plenty of beautiful white space. Scrolling down, the viewer engages in the full value proposition, before seeing the price. All the clutter of the site, like the support page, the B2B page, and the other non-product links, are pushed to the very bottom, out of the way. The information isn't shoved down the viewers throat; rather, the viewer is asked to engage in the product, to appreciate its beauty, and to opt-in to learning about its features and pricing. 

Apple has wisely created a value proposition that offers value to both the consumer and employees, and the company value seems to come naturally after treating other parties so well.

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