DEPARTMENT OF

BUSINESS
MANAGEMENT
OBS 210
2023

CHAPTER 2: CLASS ACTIVITY

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 Use the CUSTOMER RELATIONSHIP MANAGEMENT AT APPLE INC. case
study below to respond to the question.

CUSTOMER RELATIONSHIP MANAGEMENT AT APPLE INC.

“I’d rather be a pirate than join the navy.”

To this day, Apple co-founder and former CEO Steve Jobs’ famous words define the
company’s attitude and ambitions.

And, though Apple is most well-known for its innovative founder and ethos for doing
things differently, the real secret to the tech giant’s success is something all
successful brands do well. We’re talking, of course, about an excellent CRM
(customer relationship management) strategy – how Apple keeps its billion-strong
customer base happy, hungry, and coming back for more.

And it must be doing something right. Because despite avoiding traditional forms of
customer retention – Jobs was famously opposed to market research, and Apple
still doesn’t run a formal loyalty scheme – the company has built one of the most
enduring, exciting, and enigmatic brands of all time.

The secret to success: Apple ID

You can boil Apple’s CRM strategy down to just two words: Apple ID. Let’s explain.

When you take your first Apple product home, you’re asked to create an Apple ID –
a unique profile that syncs across all Apple devices you own. This ID allows Apple
to remember your purchases with the Apple Store and provide personalised
recommendations for music and films. You can even share content and cloud
storage with other members of your family, and monitor your kids’ purchases.
Apple’s CRM systems was developed in-house and captures customer data at the
point of purchase, which it uses to instantly customise its customer’s online
experience. In addition, Apple’s CRM stores your personal and payment details
when you create your account. The online Apple Store allows customers to place
an order, with one click, for an Apple product and have it delivered to their door in

© 2023 University of Pretoria

 as little as two days. This order-related information is sent upstream to a fulfilment
centre in order to meet customer requirements. The ease of online shopping means
customers need not leave their homes to make a purchase.

For Apple, it’s a self-renewing, seemingly limitless data set, allowing it to constantly
tailor its services and re-engage customers with handpicked deals, discounts, and
products. Not only is this targeted marketing done effectively, but it also engenders
a sense of loyalty and familiarity with Apple’s brand and ethos. This will help Apple
to maintain their highly differentiated product offerings to constantly meet customer
demands.

Adapted from: https://www.expertmarket.co.uk/crm-systems/apple-crm-case-study

END OF CASE

Discuss the concerns of customer service evident in the case study. Provide evidence
from the case study to support your answers. (NB: integrate the theory and evidence
from the case study. No marks will be awarded for quoting directly from the case
study.) (8)

© 2023 University of Pretoria