Friday 25 September 2020

Apple Support is customer care done right

 Over the history of my Apple fanboydom, this is the first time that I’ve used Apple Support. I’m really impressed, but my problem hasn’t been solved. [blog.mindrocketnow.com]


I’ve bought Apple Care+ every time I’ve bought an Apple hardware item, and until now, never used it. So just before it expires for my latest Apple Watch, I decided to use it to see if one of the niggles I was living with, would be fixed under the warranty. After all, I’ve paid out more in premiums than the cost of a replacement watch.


MacBook late 2008

£75

Mac Mini late 2009

£49

iPhone 6 plus 2014

£149

iPhone 8 2017

£129

iPhone XS 2018

£199

Apple Watch series 0 38mm 2016

£49

Apple Watch series 4 38mm 2018

£89

Apple Watch series 4 Nike+ 44mm 2018

£89

Apple TV 4k 2018

£29

Total

£857


The problem I’ve been having is an odd one. The heart rate chart doesn’t appear if I do a run. I can sometimes see an average heart rate reading, and the chart appears for all other activities that I’ve tried, but just not for running. And it’s inconsistently unavailable in both Apple’s Workouts app and the Nike+ running app. I’d been living with it, because I’m used to trying to fix these annoyances myself. But why not put Apple to the test and see how my insurance premiums have been invested?


Here’s my conclusion: Apple’s customer support is the best I’ve experienced.


I tried three ways to access Apple support, and all three were excellent. The first was rocking up to the Genius bar in my local store. The appointments were oversubscribed, but there was a way of scheduling a walk-up for later in the day. Gathering my details was painless; they just took a screenshot of my Apple ID and tracked me from there. When the message pinged me that my slot was ready, I was guided through the covid security measures by a very serious-looking security man, then ushered to my waiting stool at the bar. Altogether, I was greeted and chatted with 6 different Apple employees, including the engineer who very patiently and knowledgeably tried to resolve my issue.


The follow-up appointment was at an authorised reseller because it is within walking distance, and the store isn’t. Making an appointment was straightforward using the Apple Support app. The session was actually fun, because we ended up geeking out over my beyond vintage MacBook, and the possibility of installing Ubuntu. I was sent away with more suggestions, most importantly to wait a couple of days and install the new watchOS 7, to see if that fixed things. Again, an excellent experience; the third party’s service was indistinguishable from Apple’s own standards.


One of the tips from my first Genius appointment was to make use of the telephone service, as Apple Care+ gives me access to the same standard of diagnostics except from the comfort of my own home. There was no wait to talk to an agent, the knowledgeable Isabella - contrast with the 90min I had to wait for a BA agent to change my air tickets last month. Isabella was able to run the same diagnostics as was done in the Apple store, and had a suggestion that the other engineers hadn’t thought of.


Isabella escalated to a second line agent, Chris, who has expertise in the heart rate measuring features of the Apple watch. Chris repeated the same diagnostics, repeated the same “you’re wearing it wrong” advice, repeated the request for more test data to try to repeat the issue (I’m tired with all this running). So far, I’ve had 4 scheduled call-backs, more suggestions made and more data gathered each time. 


Even though my issue still isn’t resolved, I’ve come away extremely pleased with all the interactions. It’s worth dwelling on that point; I can think of only one other occasion in my shopping career where something has gone wrong and yet I’ve been happy about it (more on that later). Every other time I’ve been all entitled and compainy when the tiniest thing goes wrong, even if it’s been fixed promptly. How has Apple managed this magical feat of emotional manipulation?


The first key difference between Apple and most other retailers in my life, is that I’ve made an emotional investment into Apple’s hardware (= become a fanboy). This pre-disposes me to not put on my complainy face, but also places the burden of high expectations because I feel I know them so well. So they start with a goodwill surplus and trust that they can solve my problem.


It’s a relief to see that they don’t squander the goodwill the way that all call centres seem to: they don’t have long wait times, they call you instead of you needing to call them more than once, they don’t read from scripts (at least not obviously so). They come across as trying to solve the problem with you, as opposed to solving it for you. This changes the dynamic from being a service where you’re entitled to a fix as soon as possible, to being a collaboration where you’re a team experimenting together.


The second key difference is that the tools are excellent because it’s a coherent ecosystem. My Apple ID links my purchase details, warranty scope, appointment scheduling, and login to data sharing websites. There are diagnostic apps which can be remotely initiated and results are immediately shared. Screenshots can be uploaded and viewed whilst the call is ongoing, so there’s no need to schedule yet another follow-up.


Finally, the service is expensive, and it’s obvious where the money has been invested. There are enough agents at each level of expertise to make wait times disappear, and there’s not sense of needing to rush the interactions. The software has been built with not just functionality but with diagnostics of that functionality. This requires deep pockets.


So how can companies achieve this same level of customer care without Apple’s deep pockets? Let's look at my other shopping experience where something has gone wrong and yet I’ve been happy. I bought a very old convertible at the beginning of the summer (wife-endorsed midlife crisis car, plus it was a hot sunny day). It was perfect for the summer weather, especially the sunshine we enjoyed on holiday the week after buying the car. The car and I bonded. Inevitably, the hood broke on the drive back. 


I called the dealer, who immediately agreed to fix it at his cost; this was the second week after selling the car to me and he still felt a duty of care towards the purchase . This was prior to understanding what the issue was, beyond my vague non-technical description, and knowing that his in-house mechanic probably wouldn’t be able to fix it. I took it in, then went on holiday again (abroad, no need for a car). I picked it up after we got back, and it was all fixed, so invisibly to me. He had to take it to a hood specialist, and had to pay for that work himself, which probably cost all the profit from the sale, maybe more. But he was happy to spend that money, because he valued my satisfaction.


Both Apple and the car dealer lost money on that one purchase that I made with them. However, Apple has made more money from me over all my purchases with them, and I’m pretty sure I’ll go to the car dealer again when I next want to make an impulse car purchase. Both are able to remain in profit because not everyone needs expensive customer care, but everyone pays the premium. 


It turns out that the way to achieve exemplary customer satisfaction is actually straightforward: 1) invest in quality so that only a few people need support after purchase, and 2) invest in the support so that the interactions are exemplary. Being exemplary needs investment, but is only achievable if it's a business priority.

Friday 18 September 2020

Is Apple One value for money?

 One of the less eye-catching, but more significant announcements from this week’s Apple announcements was the bundling of Apple’s services. It’s been a long time coming, but is it actually worth it? [blog.mindrocketnow.com]


Amongst all of the shiny new devices came an announcement that Apple will start bundling its subscriptions services into a single Apple One subscription. I’m not in the market for a shiny new device, but I do already subscribe to two Apple services separately, so this was the most significant announcement for me. And also, as it turns out, for companies like Spotify, who called it an abuse of Apple’s dominant position. Why is it such a big deal? Let’s try and answer that by example.


My iCloud subscription costs £2.49 for 200GB. My Apple Music subscription is £14.99 for a family account. An Apple One family plan is £19.95, so only a monthly medium latte more. For that extra, I get a service that I’d actually pay for, namely Apple TV+, as well as one that’s frankly meh, namely Apple Arcade. 


I like Apple TV+, I really enjoyed Dickinson and Little America, but there were too few shows for it to earn real estate in my TV watching brain, especially compared to Netflix and Amazon Prime, and not worth £4.99 per month. But at £2.47 per month, Apple TV+ is now a keeper. The price is low enough for me to not bother to cancel once I finish watching The Morning Show, because I can afford to wait a couple of months for the next show. Apple TV+ is now priced commensurate with its stature as a second tier subscription.


Avi’s first tier subscriptions:

These services have earned their spot as keepers, and are used multiple times per day.

  • Netflix (£8.99 per month, or 38% of TV budget)

  • Disney+ (£5.99 per month, or 26% of TV budget)

  • Amazon Prime (TV is half of value of prime, so cost at £4 per month, or 17% of TV budget)


Avi’s second tier subscriptions:

These services are also keepers, because they’re cheap enough.

  • Apple TV+ (calculated ast £2.50 per month, or 11% of TV budget

  • Starz Play (£1.99 per month for 6 months, so 9% of TV budget)


Avi’s third tier subscriptions:

These services are only keepers for their incentive period.

  • BFI Player (free for 4 months)


Looking at the numbers, you could argue that Disney+ and Amazon Prime TV are both underpriced, whereas Apple TV+ is now priced correctly. But value for money isn’t the reason why Spotify is worried.


Amazon now enjoys 98% retention after 2 years which is in no small part due to the range of services offered as part of Prime. This is clearly the direction of travel for Apple. Apple One is already priced where you can still realise value if you only use 3 out of the 4 services included. The stage is set for Apple to offer more marginal services within the cost of the subscription. Apple Fitness+ is a “free” addition later this year, if you buy the premium level of Apple One. It wouldn’t surprise me if iTunes Match is bundled with Apple One in the future (yes, it still exists, nobody bothers with it, yet it costs a whopping £21.99 per annum extra). Wouldn’t it be interesting if Apple Upgrade Programme and Apple Care+ were offered as in another bundle tier too?


What’s the alternative? Well, Google One now backs up iPhones and has a cheaper tier for less storage, but the saving is small. (Side rant: I shouldn’t need to pay Apple for the privilege of backing up my mobile devices. Every purchased hardware should come with lifetime ability to back up settings, especially at Apple’s prices.) Apple Music has many competitors, but they’re all at the same price point. So whilst there are alternatives, none are compelling. 


Apple Music has now 19% of the market (Spotify, the market leader, has 35%). The stickiness of Apple One will undoubtedly increase its market share. I’m going to sign up, and when I do, I’ll probably stay. And that’s why the rest of the industry should be worried.