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December 27, 2007

The Latest Reason Why Apple Kicks Butt

Posted at 5:03 PM

Has Apple become "the Nordstrom of technology"? That's the assertion that Michael Gartenberg, vice president and research director at Jupiter Research, makes in an article in today's New York Times.

The newspaper notes that Apple's retail stores now account for 20 percent of all revenue and the average annual sales per square foot is a hefty $4,000. There are slightly more than 200 stores across the United States, all of them futuristic white beacons of retail bliss.

So how did Apple--a company with little experience in retail--conquer one of the trickiest sales channels in all of business?

"[T]he secret formula may be the personal attention paid to customers by sales staff," the Times speculates. "Relentlessly smiling employees roam the floor, carrying hand-held terminals for instant credit-card swiping. 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."

Beyond that, customers are allowed to check e-mail on an array of MacBook Pros, listen to music on iPods, and attend seminars on film making. One woman claims to have written a book on a laptop in one of the company's three New York City stores--a few sections at a time. (To read the Times article in full, click here.)

The formula is clearly working. Jane Buckingham, the noted retail analyst, says that when she asks clients or consumer focus groups to identify a retail experience they enjoy, they invariably start their list with the Apple Store. “Basically, everything about it works," Buckingham says. "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.”

What do you think? Is the Apple store experience truly unique and compelling? Would the stores be as successful if the products weren't so damn appealing? And what ideas about store design and service do you think other retailers should appropriate from the Apple store?

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