In its June 2010 issue, Consumer Reports released the results of a survey of nearly 11,000 of its online subscribers, asking them about their cellphone buying experiences. Apple stores rated the highest, getting top marks for checkout, activation and service, despite only selling one type of handset – the iPhone.

Apple stores had an overall rating of 86, outdoing U.S. Cellular (80), Costco and Best Buy (tied at 79). VerizonWireless.com had the best online rating, with a score of 80. Apple’s pricing received a low rating, however: two on a scale of one-to-five.

Best Buy received top marks for phone selection and above-average scores for price and customer service (see Best Buy: Customer-centric and Best Buy Mobile Store Concept). Costco stood out for price and customer service, while Wal-Mart was praised for price alone (see Compete with Wal-Mart: Sell Value Over Price).

Leading complaints included: long waits for help, confusing pricing, and a limited selection of phones.

Learning From the Apple Store Model?

The Apple Store model is unique in several ways (eg. product offering, store design).  However, there are many pieces of the model that independent retailers can learn from and implement in their own stores (eg. knowledgeable staff, simplified sales process).

Two years ago, we ran an article examining the Apple Store concept and reasons behind its success, referring to an article written by Katie Hafner of the New York Times. Wireless retailers can learn from the best practices established by Apple and replicate many of the ideas in their own retail locations. The following list provides the key factors for Apple’s success:

How does Apple do it?

1. Product design = Store design. Apple's careful, aesthetic product design – the trademark of co-founder and CEO Steve Jobs – is translated into the stores' appearance, Hafner added. "The company's retail concept ties in very much to the product," said Andrew Neff, senior managing director at Bear Stearns.

2. Pleasant, attentive and knowledgeable staff. "Relentlessly smiling employees roam the floor, carrying hand-held terminals for instant credit-card swiping," wrote Hafner. "Technicians work behind the so-called genius bar, ministering to customers' ailing iPods, MacBooks and iPhones. Others, designated 'personal trainers,' give one-on-one instruction and lead workshops.


"Personal shoppers are available by appointment, and last month the company took the concept of personalized service to a new level, with concierge teams stationed throughout the store."

3. Quality service = Customers willing to pay more. "What (people) really appreciate the most is that undivided personal attention," said Ron Johnson, Apple's senior vice president for retail. Thus, customers have fewer qualms paying premium prices: $30 for an iPhone case, $200 for an iPod Nano or $1,200 for a computer.


"Apparently a lot of (people) like what they're seeing in the stores, they like the experience and they go back to buy the products," said Michael Gartenberg, vice president and research director at Jupiter Research.

4. Comfortable environment and experience. "(Apple stores) encourage lingering, with dozens of fully functioning computers, iPods and iPhones for visitors to try – for hours on end," wrote Hafner. She described how some Apple Stores take an almost Internet café approach to letting customers use devices such as laptops, for free. Patrons have been known to stay as long as they please, or even bring food into the store.


"Whenever we ask consumers to cite a great retail experience, the Apple store is the first store they mention," said Jane Buckingham, president of the Intelligence Group, an L.A.-based market research firm. "Basically, everything about it works. The people who work there are cool and knowledgeable. They have the answers you want, and can sell you what you need. Customers appreciate that. Even the fact that they'll e-mail you a receipt makes you feel like you're in a store just a little bit further ahead of everyone else."

- newsletter@iQmetrix.com

* To read more about Improving Customer Experience, check out the following articles from iQmetrix News & Views:

Quality Assurance: The Balance between Good Service and Profitability

Don't Be a Vulture: Customer Satisfaction vs. Sales Focus

Brand Experience and Engagement Drive Great Customer Experience: Study

In Recession, Consumers Still Focus on Customer Experience (Not Cost)

Customer Service: Three Keys to Combat Churn