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The iPod as business model
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By John R. Graham
“The Internet changes everything it
touches. It touches almost everything,” stated writer
John Ellis several years ago. Such an audacious statement is an
even more accurate description of the Apple iPod. Within
the blink of an eye, it has become the most successful new
product in history. Touching almost everything, it has
literally taken the world by storm.
In a split second, it went from zero to
100 mph, so to speak. Even those who don’t own an iPod
brand MP3 player make sure they have white earpieces, the
pervasive iPod trademark. A recent poll of college campuses
benchmarked the iPod’s success when students ranked it
number one in popularity, beating out beer drinking for the
first time.
But what does the iPod have to do with
business? The answer is simple: just about everything.
A good place to begin is by acknowledging
that what makes an iPod unique are not its component parts,
many of which are reportedly off-the-shelf. What has made the
iPod successful is a series of incredibly brilliant insights:
It’s the iPod’s design that
sets it apart. The design is a combination of an irresistible
sleek look, a compelling size and, most importantly, how it
works.
At the very moment the world of gadgets
has become incredibly complicated, the iPod offers the serenity
of simplicity. TV “clickers” are incomprehensible.
Who can program a microwave oven, let alone a DVR? Most of us
use perhaps 5 percent of our cell phones’ capabilities.
Not the iPod. It’s brilliance rests
in its intuitive simplicity. Product designer Bruce Claxton
says, “People are seeking products that are not just
simple to use, but also a joy to use.” That’s the
iPod.
The iPod is the anti-gadget. Gadgets have
buttons and switches that frustrate users, while the
iPod’s simplicity allows it to become an extension of the
self. This is what makes it so compelling and essential.
The iPod puts users in control. The
revolt against the gnawing feeling of being controlled by
economic and social forces came with the onset of free agency
in professional sports in the mid-1990s. Today, most Americans
like to think of themselves as free agents — as those who
are in control of their own destinies.
There’s a well-known photo of a
college co-ed holding her iPod. The look on her face suggests
she has found nirvana. This is what the iPod is all about:
freedom.
As we all know, it started with music.
Every youth has his or her particular tastes in music. While
tapes and then CDs were a precursor, it wasn’t until the
iPod that we were given the power of total choice. We can
listen to our music, when and where we choose.
“You’re free” is the message of the iPod. We
can be in our own private world wherever we happen to be at the
moment.
To understand the attraction of the iPod,
it helps to know why it is an unmitigated marketing success.
A total customer focus. While every
business talks about meeting customer needs and expectations,
most of it is hype. Can anyone be serious whose voicemail
message says, “Your call is very important to
me….” If they really believed the call was
important, they might consider taking the call. Or what about
all the blabber about “customer care” when the
so-called helpers at the “help desk” merely read
from a computer screen?
Unlike Microsoft and other technology
companies, Apple is pure-and-simple a marketing organization.
HP sells very good printers. Dell sells computers made to
order. Yet, as someone pointed out, there is no “Cult of
Dell.” There are, however, the numerous “Dell
Hell” blogs cataloging thousands of customer service
complaints.
Here’s the point: HP thinks about
printers; Microsoft thinks about software; and Dell thinks
about building computers. Apple thinks about customers.
That’s the message behind the company’s
“Think Different” campaign.
According to reports, Apple co-founder
and CEO Steve Jobs is totally focused on the customers’
experience with Apple’s products.
An “I can’t live without
it” approach. Try to take an iPod away from anyone who
owns one, or more likely, several, and see what happens.
Perhaps this is the point at which the genius of the iPod
becomes apparent.
This may be why Matthew David wrote,
“I’ve got just one thing to say. I love my iPod.
Yes, I am that person, that soul, caught up in the marketing
hype that Apple must love. I love you, Pod.”
Perhaps this is why iPods are everywhere.
Business executives listen to audio books, podcasts —
and, of course, music. Plug the iPod into your car’s MP3
port. Watch videos. Now, the tiny device may become the core of
home entertainment.
The iPod is education-friendly, too.
College professors are posting their lectures for downloading.
At Georgia College and State University, they’ve created
an iColony with iCitizens that’s built on an iPod
foundation.
It has become essential because it works
for people.
A work in progress. It may be no accident
that the iPod is more like a Toyota Camry than anything else.
While General Motors continued to turn out a string of nearly
identical sedans, Toyota focused on one, the Camry. Seemingly
dull in appearance, sales grew because of customer confidence
in its quality and reliability.
Apple has taken this same highly focused
approach with the iPod. About twice each year, the next
iterations make their appearance. Now, the iPod product line
offers an array of options to fit every lifestyle including
incredibly brilliant video models.
What’s coming next is always the
question. Will there be a phone? Internet connectivity? E-mail?
Why not?
Who would have thought that the iPod
would become the heart of the home sound system? Yet, it is
exactly that.
Against this background, what does the
iPod say about business? Although the list is long, here are a
few possibilities:
Customers define the business. Some
businesspeople talk about customers wanting to talk with
“a live person,” while others say that customers
expect “personal service.” Is this really what
customers want? Or are they looking to have their needs met in
ways that satisfy them?
With the iPod, Apple introduced a product
that allows customers to define how the product is used. In his
August column on the iPod in the Washington Post, Jose Antonio
Vargas cites comments by Jason Berkowitz, project manager for a
software company. At one point Berkowitz says of his iPod,
“It becomes an extension of you…. It’s like a
window to your soul.”
The key is letting the customer define
the business.
Make it enjoyable. Kids are taught from
the time they can walk not to touch the merchandise, to keep
their hands to themselves when they’re in a store. At
times, it seems as if store salespeople are there to enforce
the “do not touch” rule.
Once again Apple stood the process on its
head: They invited customers to play with the merchandise.
There is a place for small children to use computers. The
“Genius Bar” offers free advice and information. On
top of all that, there’s a learning center. Apple is
concerned with the customer’s experience.
Tear yourself away from the competition.
Too many companies take their business plans from the
competition’s playbook. It is safe to say that there
would have been no Macintosh computer or iPod if Apple focused
its future on the competition.
Even the most devoted member of the
“Cult of Apple” admits that the company faltered
badly for about a decade with its computer products, even
though its operating system was unassailable. It was not until
Steve Jobs returned as CEO and gave new life to the
“Think Different” mission that change occurred.
When he introduced the iPod in 2001,
Steve Jobs said, “Listening to music will never be the
same.” It may have been more appropriate for him to say,
“Life will never be the same.”
The headline on the column by Jose
Antonio Vargas was accurate: “The iPod: a Love Story
Between Man and Machine.” That’s the test for any
business.
John R. Graham is president of Graham
Communications, a marketing services and sales consulting firm.
He is an author of several books, writes for a variety of
publications and speaks at association meetings. He can be
contacted by phone at (617) 328-0069. The company’s web
site is www.grahamcomm.com.
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