Ron Johnson Says People Come to Apple For The Experience

[marksman]

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not entirely true.. Apple up sells as well.. they have always tried to get me to purchase AppleCare with every product I've purchased.. same was true with the old MobileMe..

AppleCare is one of the only worthwhile service plans that exist in retail. It is the only one I would ever recommend anyone get.

Asking you if you want something that is of real value is different then trying to push someone into a protection plan that is just a way for the retailer to make money.

 

[marksman]

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not entirely true.. Apple up sells as well.. they have always tried to get me to purchase AppleCare with every product I've purchased.. same was true with the old MobileMe..

Exactly - I had some friends that worked at Apple stores (and this information has also been made public) that said that they were instructed to try and attach Applecare or MobileMe to purchases (and would be "spoken to" if their attachment numbers weren't high enough). So there is definitely some nonsense to what he's saying.

Well if you are not making it clear to customers why AppleCare is a great value for most people and not a traditional shady add on warranty you are not servicing the customer well so that metric is fair.

I would not say the same about MobileMe.

I don't think there is anything wrong if they see people buying AppleCare 22% of the time in a low pressure environment and you are doing 8%. It means you are likely not presenting the offering properly and shortchanging the customer

I don't think some of you realize how extreme hardcore sales organizations.

 

[cr2]

Extended Warranty

At Apple, it is great. They don't pressure you into anything. If you want something, they give it to you. If you don't want something, they don't heckle you 18 times before they get the picture....

I was at the Dicks Sporting store and someone ahead of me was buying an Olympic Weight Set. The sales person was trying to sell him extended warranty. But I guess that is where the most money made.

I kept wondering what can go wrong with the the weight set...

 

[acslater017]

Gonna go ahead and disagree here...I hate going into the Apple store.

The employees are not "educated" at all, I dare say they don't even know what "RAM" stands for. Apple is a group of "diverse" individuals (because we all know diverse = multiple ethnicities) dressed to look trendy and pretty much programmed to spout off predetermined lines to the customers.

I've been in plenty of stores and they are so overstaffed that its like walking into a Vultures nest each visit. Nothing pisses me off more than to tell one of the associates I don't need help selecting an iPhone case only to have another one come on over and try to evaluate my needs again. And no, I don't want to pay $100 a year for your stupid one-to-one program.

1) It's true that Apple Store employees are not all technical geniuses. And that's really not what Apple is looking for anyway. They're looking for sharp, friendly, outgoing people - and that's 95%+ of Apple Store employees. Geniuses are there if you want to match wits about acronyms. But really, it makes sense - is everyone at The Gap tailors and seamstresses? Auto dealers don't necessarily know the ins and outs of your car like a mechanic would. Specialists (the Apple blue shirt people) are there to connect you with the right product and get out of the way.

2) Overstaffed? In the words of Jay Pritchett from Modern Family, "Champagne problems..." If there seem to be too many employees, it is probably because Apple Stores get huge rushes of people. I went at 12:45 (prime lunch time) and expected it to be empty. Nope - 30+ customers in store, 5 or so in line for iPhone 4Ss, a dozen or so employees out front, with more in the back! Whether you have too many employees or too few, someone will always find something to complain about..."I got too much help!"

 

[vitzr]

It's a mixed bag when entering an Apple Store. The floor sales people vary from nearly clueless about Apple products, to quite knowledgeable (the enthusiasts).

Same at the Genius Bar, yet overall the generic customer service is quite good.

 

[acslater017]

Maybe it is because I am a recent switcher that I notice details long-time Mac owners may take for granted, details that are so minute yet so Apple has once again received top honors among computer manufacturers for customer satisfaction, and not by a small margin, either. http://bestbusinessbrands.blogspot.com/

Ah, to be young again. I first switched in 2003/2004 and it was a revelation. Every day seemingly, I would notice something new about OS X or my iBook that would just make me grin.

 

[kage207]

I haven't read all the response here but some I'd like to clear up.

1) RAM - Random Access Memory
2) No employees do not get more money if the store does well, managers do.

Anyways, I used to work for Apple. I do need to say this, I enjoyed my time with Apple and agree with some of the things they did and some I disagreed with. I didn't mind letting customers know either. Many came in wanting to buy the more expensive computers and many I told to buy the cheaper as it would suit their needs. I didn't feel pressured to meet numbers ever besides Mobile Me. I had about 2% for awhile. Though numbers can be misleading as they count iPhones, iPad and Macs. I didn't like to push MM, I'd try to find a connection of MM to a persons life show them the benefit of it and if they said no then I would leave it at that. That's when I went up to about 10%. I was fine with that. AppleCare was a different story. I sold that all the time, why? Because its a smart idea. In the long run it saves money as most of Apples repair is overpriced. Plus they are willing to work with you if you go outside of what it covers or after 3 years because they want you to come back. Plus talking people to a cheaper computer plus that made them feel more at ease. OnetoOne I only talked about if it was someone who was bad at computers, scared about buying Mac or wanting to learn some of the pro apps as they tried to get their feet on the ground. It's not a bad value if you look at unlimited lessons for $99 for a year. Again I didn't do bad with this either cause I present it as a solution to a persons need. I say, if you want it and think its would be a value to you great because we provide a great service. So people have a place to go to when they need help or s place to learn about things they never dreamt of doing on a computer. It's about making a connection to someone's life and making it more enjoyable and easy. If people didn't want it, I'd ask why? Because I'd like feed back of how maybe I didn't present it to them. It"s about the person, not a sale.

Anyways that short rant is about only making sure we got solutions to their needs and/or problems. I even compared prices of PC with a lady for 3 hours or download an iTunes song for 1 and show her how to add it to her slide show and she about cried as it was an annivesary present for he husband. That is why I worked there. To help people solve problems.

Why I left? My manager told me I had to as I was going back to school again in a different city. The nice thing about that now I'm developing apps and Apple doesnt own them. So I guess it works out.

There are some things I disagree with Apple with like how they work their employees now and how they like the ever increasing traffic in the store as it is killing what the store was. I'm sorry but trying to organize 35 people to get help isn't an easy job. There is a lot more I could say but all in all I enjoyed the experience and my co-workers are still friends.

Ronnie.... I will miss your videos to all th employees oh so very much as they are what made meetings so worth going to.

 

[RLesko]

1) It's true that Apple Store employees are not all technical geniuses. And that's really not what Apple is looking for anyway. They're looking for sharp, friendly, outgoing people - and that's 95%+ of Apple Store employees. Geniuses are there if you want to match wits about acronyms. But really, it makes sense - is everyone at The Gap tailors and seamstresses? Auto dealers don't necessarily know the ins and outs of your car like a mechanic would. Specialists (the Apple blue shirt people) are there to connect you with the right product and get out of the way.

2) Overstaffed? In the words of Jay Pritchett from Modern Family, "Champagne problems..." If there seem to be too many employees, it is probably because Apple Stores get huge rushes of people. I went at 12:45 (prime lunch time) and expected it to be empty. Nope - 30+ customers in store, 5 or so in line for iPhone 4Ss, a dozen or so employees out front, with more in the back! Whether you have too many employees or too few, someone will always find something to complain about..."I got too much help!"

1) As a whole, it is obvious Apple does much more right than wrong as their retail branches are a huge success. My point was that I don't agree with calling employees "educated" when its really just a clever scheme being implemented.

2) Its my personal preference to not receive any help until asked, although it is obviously expected to be approached at least once while in the store. I don't think anyone likes being hounded, but yes its true that its hard to staff for rushes of people.

 

[leman]

As much as I like and respect Apple and their products, that statement is just the usual marketing propaganda. Sure, Apple stores are unique and the personal is very helpful, but they neither have "excellent training" (I knew more about heir products *and* the sales rules then the half of the sales team) nor are "improving" your experience (they do want to sell you extra stuff, they just aren't obtrusive about it).

People are going to Apple stores because a) its Apple and b) the stores themselves are damn good. But let's not get overzealous here.

 

[Winni]

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AppleCare is one of the only worthwhile service plans that exist in retail. It is the only one I would ever recommend anyone get.

In retail, maybe. But AppleCare pales in comparison to Dell's business and enterprise support.

I also don't get this entire retail store hysteria anyway. Except for groceries and tools and parts for the house, I almost exclusively buy online these days. This whole Apple Store thing is an anachronism for me - something "totally retro".

 

[isoMorpheus]

In retail, maybe. But AppleCare pales in comparison to Dell's business and enterprise support.

I also don't get this entire retail store hysteria anyway. Except for groceries and tools and parts for the house, I almost exclusively buy online these days. This whole Apple Store thing is an anachronism for me - something "totally retro".

There are still people who have not a concept of what kinds of iPods Apple makes, and for them, the store is an excellent place to learn about them.

 

[G4er?]

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Love not being hounded

But they ought to at least say hi to you when you come in the door.

 

[dbo789]

Yes, I visit the Apple store for the experience. The experience of fighting my way through throngs of people. The experience of having to chase a blue shirt through the store for 15 minutes just to purchase a small accessory. The experience of showing up on time for my genius appointment but still having to wait half an hour. Yeah. The 'experience'.

 

[Gasu E.]

In retail, maybe. But AppleCare pales in comparison to Dell's business and enterprise support.

As a multi-Dell owner, I agree Dell post-sales support is pretty good; their repair logistics are amazing. But their products suck, so there's that.

 

[britboyj]

I wonder how long people will keep wanting to pay the premium just to visit the store, post Johnson?

I left Apple Retail in February (for Apple Corporate, which I've since left for the whole "cog-in-a-wheel" feel I got there) but still have many true friends there, and all I've heard over the past six months is gripes I didn't hear before.

1. People who are not knowledgeable/haven't passed iLearns/RetailMe trainings for computers selling them.
2. No-receipt returns being extremely frowned upon. (Before, it was just another tool to take care of the customer)
3. Almost zero promotion from within the store outside of Genius/Creative/Expert, which are basically ceiling positions. If you want to be an Apple Manager, you have to go outside the company and TRY and get hired back in.
4. Less flexible late policy. It's "no fault" but that means oversleeping counts as much as your Dad dying. No appeals.
5. Geniuses no longer allowed to "CS-code" ($0 charge) repairs of any kind.
6. AppleCare+ now the number one measured attachment.

As a customer, the last two get me the most. I was always number one in the district (Dallas/Ft.Worth) for AppleCare and One to One attachments but that's because I BELIEVED in them 100% and didn't sell, just informed. I could genuinely say "If you have AppleCare, you WILL get better treatment at the Genius Bar," now I couldn't say that at all. I could also, when needed, swap out customers who I thought genuinely told the truth about dropping their phone in the toilet. It made them smile and made them customers for life.

I see that changing soon.

 

[monkeylui]

I love the apple stores. But they have become too busy now. The one down here in Orlando @ the Florida Mall is one of the craziest busiest stores. It is a very busy tourist mall.

 

[SockRolid]

Been there, done that. Pre-ordering from now on.

People come to the Apple Store for the experience [...]

Yes, but for some purchases (e.g. buying an iPhone) I've been there in line, done that waiting. Once was enough, on the first day of iPhone 3G availability in 2008.

Pre-ordered the iPhone 4 in 2010 (which took about 18 hours total) and will pre-order the iPhone 5 through the App Store app next year. I highly recommend pre-ordering iPhone, especially since my '4' was delivered the day before it was available in retail stores. And getting it as soon as possible is the whole point of the line thing anyway, right?

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[...] The experience of having to chase a blue shirt through the store for 15 minutes just to purchase a small accessory. [...]

The Apple Store app. Easy Pay. It's free.

 

[MUCKYFINGERS]

The fact that I was not paid on commission when I worked at Apple Retail doesn't mean I wasn't pressured to sell AppleCare, MobileMe, and One to One with each new Mac purchase.

They post everyone's "metric" attach rates daily so everyone can see how employees are performing.

Your ability to be fit into the schedule is based upon your performance. Don't sell Applecare? It's true we weren't paid on commission. But it does matter when you're not scheduled much for the week because you're not selling these extra services.

 

[britabroad]

Exactly - I had some friends that worked at Apple stores (and this information has also been made public) that said that they were instructed to try and attach Applecare or MobileMe to purchases (and would be "spoken to" if their attachment numbers weren't high enough). So there is definitely some nonsense to what he's saying.

while this is true, it's not just to make more money. research shows that applecare and one-to-one customers are ultimately more satisfied customers, and that is apple's aim. if you're well trained on the technology, you like it better. if it breaks and its repair is covered, again - more satisfied. so while staff are encouraged to sell these 'metrics', it's more to do with keeping the customer happy.

 

[Cubytus]

He may be right, but my local Apple Store is always crammed with people, to the point it's often impossible to get to the shelves, or reach the Genius Bar, or comfortably wait in line for your turn. It's everybody where it can find a 10-sq inch post to wait. Even at the Genius bar, there was originally 8 stools, now they managed to squeeze 12, so close techs can't even lay the computers in front of the customer.

Local managers have a say in this matter, and clearly some of them don't share Johnson's views.

Employees still broadcast "positive energy", as I read, but it seem you can't speak to anyone, fast.

I never thought that, a year ago, I would avoid going at the Apple Store.

 

[cr2]

The stores are busy now

I love the apple stores. But they have become too busy now. The one down here in Orlando @ the Florida Mall is one of the craziest busiest stores. It is a very busy tourist mall.

I used like to visit a store once in a while to check out on some product or for a question. But all the stores are very very busy now. Thought the number of stores in the area have increased in the past few years (Boston Area), staff is also increased but the number of people visiting the place is a lot lot more. Sometimes there is barely any place to stand. Hopefully, apple will Double (or triple) the size of the some of the mall stores.

Many years ago, there used to be just one type of Mac and a iPod, now we have a lot many products, MBA, MPB, iPad, iPhone....

 

[User39]

Not true!

At least not these days. Services like AppleCare MUST be presented to all customers. These services DO help the long-term customer relationship. Stats have shown that those who buy AppleCare are more satisfied than those who do not (even when you combine all those AppleCare customers who use the service and those who never do). This is not "up-selling"!!

 

[deafgoose]

Not entirely true.

I get hassled about the Apple Care program when buying from the Apple store but it is nowhere near as aggressive as Future Shop.

 

[ProVideo]

But they ought to at least say hi to you when you come in the door.

I'd rather them say; "Welcome to the Apple Store, I Love You."

 

[topmike]

What happened to the old Apple Store I loved?

I think what the Apple store was for me, was an experience.

I remember purchasing the first iPhone at the Apple Store in Atlanta. The employees actually all clapped for everyone who got one! Wow. I felt loved!

I have purchased every model iPhone (and Macbook) since then too. I remember the days when the Genius would exchange the dropped iPhone for a refurbished one, (happened twice), would swap a battery or even a whole machine if necessary. They wanted my experience to be top notch.

I don't see that sort of love much anymore, and in fact, it seems less and less "Personal" and more scripted. I loved the feeling that I was a VIP customer, (as was everyone else). I was happy that I knew a few things about computers, and was able to talk to a Genius about my issues, while I would hear someone complain that their computer would not play any sounds, (turned out the volume was muted), and the Genius handled all the comments with grace and poise. Well done.

Do you still see that level of service?