The Role of Customer Service Apple Inc - Case Study Example

Measuring Up to customer expectations Executive Summary Customer service has a big role to play in any company’s success. In the technology industry, Apple has emerged as the best performing company when it comes to service excellence and delivery on the expectations of the customer. Excellence in service delivery and high quality products defines the means through which Apple has succeeded in climbing to the top in the technology industry. This report provides an in-depth analysis and evaluation of customer service at Apple Inc. the report begins with an introduction that outlines the overview of the need of customer service excellence. It goes on to explore and evaluate how Apple goes about addressing gaps in service delivery. The report addresses how customer service excellence has been achieved at Apple Company. The second part discusses strategies that can be used to achieve sustainable customer service excellence. The gap model has been used to discuss strategies that can be used to address gaps in service delivery. The recommendation gives suggestions of what can be done at Apple to ensure sustenance of customer service excellence move forward. Table of contents Executive Summary 1 Table of contents 2 Introduction 3 Main Findings 3 Current customer service and expectations at Apple Inc. 3 Strategies of attaining sustainable customer service excellence 6 Gap Model 6 Recommendations 8 Conclusions 9 References 10 Introduction Customer satisfaction is crucial for any corporate to survive and achieve sustainable competitive advantage in the long run. Customer satisfaction cannot be achieved without quality service delivery. In many cases there is a gap between what the company promises in its advertising and what is actually delivered. The gap model provides an explanation of possible gaps in service delivery and strategies explain the role of the organization in attaining sustainable customer service excellence (Gopal & Cline, 2007). This report explores role of customer service Apple Inc and how the company has used this strategy to climb to the top of technology industry. The company retail stores have provided an experience like no other to millions of customers who visit them. There are strategies that include coaching to change organizational behavior that can be used in to attain excellence in customer service delivery. Main Findings Current customer service and expectations at Apple Inc. It apparent that more people visit Apple’s 326 stores in one quarter as compared to sixty million who visited Walt Disney’s four biggest theme parks in 2010. Apple has ensured that they provide friendly environment, employee intensive training, and great products (Michelli, 2011). A key element that propelled Apple’s success in the technology industry is the unique culture that has been created and is reinforced continually to ensure they consistently offer great customer experience. Employees are prepared not just to sell but to provide solutions to customers’ problems. It is interesting to note that employees do not have sales targets and do not receive any sales commission. Great customer service has been a vital ingredient towards Apple’s success. The steps of service are obtained from the acronym of the company ‘APPLE’, which means that: Approach a customer with a warm smile that is personalized Probe the customer politely to understand his specific needs Present a ready solution for the customer with regard to the problem Listen and resolve any concerns or issues raised by the customer End with fondly farewell and invitation for repeat purchases These apparently simple steps have been used successfully to drive Apple to the top in the technology industry. At Apple employees understand what is expected of them and behave accordingly and persistently. Processes and systems are built to create great customer experiences consistently and reinforce the culture. People are empowered, engaged and encouraged to deliver on customers’ expectations. Besides, people are recognized and rewarded for delivering what is expected of them in order to meet organizational goals (Martinez & Hobbi, 2008). Apple has full control over its products and has succeeded in diversifying to other types of products other than laptops and desktops. Provision of variety, high quality product and excellent service quality has made Apple to remain at the top in the technology industry. Apple’s stores a carefree and casual atmosphere having air interior and attractive lighting. Apple stores are an example of what makes it different from its peers and illustrate the approach of the company (Gilbert-jamison, 2005). The retail stores are an important avenue through which people interact with Apple. This fact applies potential customers and current customers alike. Over fifty million people visit Apple stores every month three months and about half of them who make purchases are reported as first-timers by Apple. Anything about the store is intended to be a representation of what it feels like to use and own products from Apple. Apple controls everything about the customer experience as the Apple stores. Many companies in the PC industry like Microsoft and HP have tried to emulate Apple’s approach (Euphemia & Chan, 2010). Apple is regarded as a pioneer in many aspects of store design and customer service. Apple sales people uphold the philosophy of providing solutions to customers’ problems. Apple has an advantage of increased demand for its products. Apple advantage is technical since it sells a single brand with fewer products and has few hundred stores as compared to its competitors. The employees are encouraged to keep the secrets of the company and not discuss rumors in regard to products. Anyone caught pre-empting about products that are about to be launched is subject to summarily dismissal. Apple keeps a tight lid on its operations. Apple is perceived as a pioneer in many aspects of store design and customer service (Kotler, 2009). The sales people are trained on how to find solutions to the problems of the customer but not merely selling. Search for information about Apple begins when the customer visits the company website to view and learn about available products. The Website provides how customers can contact Apple stores. Various contacts have been provided for users in its centers U.S.A., Mexico, and Canada. The website provides an easy way of how customers can get services from the company. Strategies of attaining sustainable customer service excellence Gap Model Service quality is the best ingredient for the attainment of customer satisfaction and business performance. High service quality can significantly help in boosting loyalty and customer satisfaction. The gaps model is used to describe service quality as being the differences between perceptions and customer expectations. The five gaps identified are the listening gap, the service design and standard gap, the service performance gap, the communication gap, and the customer gap (Abdeldayem & Khanfar, 2007). Gaps model is a conceptual model which been developed to qualitatively measure service quality. Customer expectations is what the customer is looking forward to according available resources and is influenced by family lifestyle, cultural background, demographic, personality, information found online, advertising, and experience with similar products (Tschohl, 2011). Customer perception is subjective and is as a result of the customer’s interaction with the service or the product. Perception is drawn from the satisfaction of the customer of the particular service or product and the quality of the delivery of the service. The customer gap is the most crucial gap and in a normal situation customer’s expectations can be identical to perception of the customer (Crotts, Duncan & Ford, 2005). The communication gap is the gap that exists between the external communications and service delivery. In many cases, promises made by the companies via advertising communication and media raise customer expectations. Communication gap is a result of the difference in the promises made in advertising and the actual service delivered. Customers will feel betrayed when the service delivered falls below the expectations created in the communication. Any company has to strive to close in the gaps that occur in service delivery between what it is promised and what is actually delivered. Strategies for sustainability One crucial input of ensuring sustainable competitive advantage is attained is through long-term customer satisfaction excellence. Market research using the company’s customers is a means through which feedback can be obtained on service delivery quality. Questionnaires can be used to get detailed feedback on customers’ perception of the services offered by the company. a focus group can also be used where a number of customers are interrogated in a place where they discuss their take on the quality and general performance of the company in meeting customers’ expectations (Lee & Chen, 2009). There should be high level of commitment on the part of the management in order to ensure customer service excellence. Commitment efforts can be actualized when the entire organization moves as one towards culture revitalization, increase of customer respect for the company and increased revenue. Without the management embracing the importance quality customer service, the rest of the organization will lapse into laxity and concentrate on other things. This is how Apple has achieved the number one slot in high quality service provision in the technology industry. It is upon the management to impress upon the members of the organization on the importance of customer service excellence (Chang, 2010). In reality, excellence in customer service is a cultural phenomenon. It requires that the customer is thought about every minute of the day. Customer service initiatives have to be launched as in the case of the APPLE acronym which is used or applied by the employees when interacting with the customer. The big challenge is letting the employees adapt to the new ways of doing things where the needs of the customer comes before their needs. The employees have start treating the customers with respect and attention that they deserve since they drive the objective of the company to realization (Pallante, 2010). If the customers shun the products of the company, in a matter of time the company will go bankrupt and liquidate since there are no profits. It is the consumers who keep the business in the market. Without them, the business is bound to fail. Coaching efforts have to be initiated in the organization to attain positive behavioral change, increase support for the employees and foster team work (Blazey, 2009). A customer-focused value system has to be introduced as opposed to an internally driven value system. Coaching of employees will help them achieve positive behavioral change that would result in customer service excellence. Some of the poor service experiences offered by employees are done consciously and that is why coaching is important in achieving behavioral change. Recommendations Apple Inc has to ensure sustainable customer service excellence is achieved in its delivery. To close the gap between service customer expectations and actual delivery, Apple has to ensure that high quality products that meet the customer needs it maintained. The company has few products that are in top form quality hence there is need for further diversification and extension of product line to create diversity or variety (Kandampully, 2012). Customers will be happy when most of their needs are met by the products of the company. The philosophy of the company in service delivery is providing solutions to problems of customers. The philosophy has to be upheld and future recruitment in the company should consider if the applicant upholds the values and corporate culture of Apple. Changing the behavior and attitude employees to embrace excellence in service delivery is a big challenge to many organizations (Rosen, 2008). Therefore, it is important to recruit the right people who would uphold the spirit of excellence in service delivery. The employees have to be conscious about the need of putting the needs of the customer before their own needs. The right training programs have to be maintained at Apple and individual rewarded for upholding the values embraced in the company. A strong corporate culture that supports excellence in service delivery has to be maintained. Conclusions The role of customer service excellence in attainment of customer satisfaction is a reality to any organization that wants to achieve sustainable competitive advantage. Apple Company in the technological industry has done well to demonstrate what excellence in customer service delivery can attain. Quality products are an important ingredient towards meeting the expectations of the customer. Every company has to have a strategy that will assist in customer service excellence. There will be a gap between service expectations and what is actually delivered to the customer. The company has to strive to reduce this gap. Apple is a good example of how customer service excellence and high product quality can drive the company to the top. References Abdeldayem, M. M. & Khanfar, M.R. 2007, Consumer Expectation and Consumer Satisfaction Measurements: A Case Study from India, The Business Review, Cambridge, 8 (2):303-310. Blazey, M.L., 2009, Insights to Performance Excellence, 2009-2010: An Inside Look at the 2009-2010 Baldrige Award Criteria, ASQ Quality Press, New York. Chang, C.M., 2010, Service Systems Management and Engineering: Creating Strategic Differentiation and Operational Excellence, John Wiley & Sons, London. Crotts, J.C., Duncan D., & Ford, R., 2005, Aligning organizational processes with mission: The case of service excellence, .Academy of Management Executive 19 (3): 54–68. Euphemia, F.T.Y. & Chan, S.S.L. 2010, The Effect of Retail Service Quality and Product Quality on Customer Loyalty, Journal of Database Marketing and Customer Strategy Management, 17(3): 222–240. Gilbert-jamison, T., 2005, The Six Principles of Service Excellence, AuthorHouse, London. Gopal, G. & Cline, S., 2007, Driving towards sustainable profitability: transportation service providers and customer relationship management, Supply Chain Management, An International Journal, 12 (2): 85 – 87. Kandampully, J., 2012, Service Management: The New Paradigm in Retailing, Springer, New Mexico. Kotler, P., 2009, Marketing Management, Prentice Hall of India Pvt.Ltd, New Delhi. , p.9-264. Lee, Y.C., & Chen, J., 2009, A New Service Development Integrated Model, The Service Industries Journal, 29(12): 1669–1686. Martinez, M. & Hobbi, B., 2008, Building a Customer Service Culture: The Seven Service Elements of Customer Success, IAP, London. Michelli, J., 2011, Prescription of Excellence. New York, NY: McGraw Hill. pp. 45–75. Rosen, D., 2008, Sustainable customer service performance requires three actions, WinFluence Solutions, New York. Tschohl, J., 2011, Achieving Excellence through Customer Service, AudioInk, Ontario. Pallante, M.D., 2010, Creating Sustainable Customer Value: The Positive Power of Strategic Management, AuthorHouse, London. Read More