Retail, Redesigned

Do you remember what malls were like before Apple Stores became a familiar sight? It may be difficult to imagine now, but there was a time when customers generally purchased Apple products through third-party retailers rather than directly from Apple.

That began to change in 2001, when Apple opened its first retail stores. Ron Johnson, Apple’s senior vice president of Retail, worked with Steve Jobs to develop a new kind of retail experience. The goal was not simply to sell computers. Apple wanted to create a place where customers could explore its products, learn how to use them, and receive help when something went wrong.[1]

Before in-store technical support became common, repairing a device could be a slow and frustrating process. A common experience was having to surrender a broken phone for a week or longer while it was shipped to a repair center. In the meantime, a basic loaner phone in its place. The process was inconvenient and often exasperating.

The Genius Bar offered a different experience. Located inside the Apple Store, it gave customers direct access to knowledgeable employees who could answer questions, provide technical support, and arrange repairs. It also helped make the store a gathering place where customers could learn about Apple products and connect with others who shared their interest in technology.

By 2004, Apple had opened 84 retail stores in the United States, and the company reported that more than half of the U.S. population lived within 15 minutes of one. Its new mini stores included Genius Bars and on-site repairs, with next-day turnaround available to customers who held a ProCare service card.[2] Apple was bringing support closer to its customers and making that support part of the product experience.

Ron Johnson understood that Apple customers needed more than innovative products. They also needed accessible expertise, dependable service, and confidence that help would be available after a purchase. The Genius Bar addressed those needs in a way that was consistent with Apple’s identity and distinct from the typical technology-retail experience.

Apple’s success offers a valuable lesson in understanding the customer. Customers do not experience a product in isolation. They experience every interaction surrounding it, from the place where they purchase it to the support they receive when they need help. Apple recognized that service was not separate from the product. It was part of the value the company provided.

Sources

[1] First Round Review, “How to Do Retail Right from the Inventor of the Apple Store.”

[2] Apple Newsroom, “Apple Unveils New ‘Mini’ Retail Store Design,” October 14, 2004.