Excellent NYT article “Good Luck With That Broken iPod” (registration req’d) about a customer’s dissatisfaction with his iPod’s fragility, and difficulty and high cost of repair.
Apple is profiting because of the iPod’s wonderful design and ease of use, but seems to be ripping off customers with a expensive product that’s cynically designed to last only a short time.
It’s not hard to predict that competition will soon fill the void, and arrogant Apple will have a serious customer retention problem. Here’s my three point marketing plan for Apple to avoid permanently damaging its brand:
- Show that it cares about quality; Apple should admit the problem and commit to developing sturdier products
- Help customers cope: Apple should offer reasonably priced extended warranties and accidental damage plans and improve its self-service capabilities
- Implement relationship marketing techniques: Apple should strive to build a complete database of its customers, gather and use data intelligently, and develop tailored communications streams to improve its image, keep customers informed, spot dissatisfied customers, make special retention offers, and make amends in general
Meanwhile, let's watch to see how this nastly problem affects Apple’s sales and stock price.
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