Apple Customer Relationship Management

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Cooperate with universities

In addition, youth is one of the Apple prospects. For the sake of attracting their attention, Apple cooperates with nine universities and offer student price. Whatever you buy what model of product, students also enjoy different discounted price. Take iPad Air as an example, original price of 16GB Wi-Fi iPad is $3888. After the student discount, it is cheaper than original price$240. Besides, Apple also give premiums such as headphone to students after they purchase product.

Retention

Apple’s retention rate is a whopping 78 % whereas Samsung's is 55% [3].Owing plummet of iPhone retention rate, it has plummeted from 84 to 78%[4]. Therefore, Apple need to conduct necessary action to remain the retention rate.

After-sale service

After-sale service is a major element to maintain the loyalty of customers. So Apple offer excellent after-sale service which is Apple care, refund within 14 days and 24hours online support. Moreover, the staff of Apple Store are well-trained and knowledgeable, they can provide professional product knowledge to customer. When the customer has any problem about using, setting and advance function, they can teach the customer patiently.

Exchange cost of smartphone

When the iPhone user change to use android smartphone, they will face on high exchange cost. First, the purchase items of iTunes cannot shift to android smartphone. For example, music, movie, TV show and audiobook. That means you will loss the purchase items when you use android device.

On the other hand, Apple has unique connector call Apple lightning. It cost HK$228[5]per one. Mostly, people has more than one Apple lightning. Once changed to android, those items will be useless.

Keep improvement

To keep on research and develop is also important part of building loyalty. Apple launched Siri in 2011, this is an intelligent personal assistant and knowledge navigator. Apple still launch beta version of Siri. In 2013 year, Apple launch official version of Siri and with Cantonese[6]. It can prove Apple continue to improve the cover range of language.

Another great improvement of Apple is the operation system called iOS which is the core value of those “iProduct”. Apple keep on improving the iOS system aim to avoid unsafety bugs and provide the better experience for the customers. This action attempt to offer better service to remain the existing customer.

Step 2 Opportunity of making profits

iCamera

According to the data collected since iPhone 3G, the camera always is the concerning point to the customers. This is one of the main reason why people choose iPhone instead of others[7]. The performance of iPhone’s camera is always the best even under same pixel.

Many of youth like to play Instagram, Twitter and Facebook etc. Those function is about sharing their recent status with some photos. That’s why the photo quality being much important under these social media.

Moreover, there are some specific accessories can make the iPhone look like a camera like SNAP! 6 from “bitplay”[8]. Those evidence showed us that the camera function of iPhone is very attractive for general public.

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Under this trend, Apple can use its advantage to create an iCamera which contain a powerful camera. The most important things is the combine of camera apps. It will allow user to use the camera apps to edit the photo easier. Furthermore, they can upload their photos onto different social media instantly.

Apps

Apple can review the purchasing record of their customers to take actions in short-term in order to maintain the current customers and reduce the churn rate.

Through the purchasing record, Apple can review the Regency Frequency Monetary (RFM) of customers, target the youth group. Apple ought to adopt rewarding program to reward them in order to increase the loyalty toward Apple and purchase the apps on iTunes. A recent survey by Pew Research found that teenagers use their phones for far more than just phones calls and texting: 83% [9]use their phones to take pictures. 64% share pictures with others. 60% play music on their phones. 46% play games on their phones. Therefore, pay app service is a potential opportunity for Apple to make profits.

We suggest that the price of iCamera cost US$799. According to the database of Apple, it revealed 60% users are addicted in selfie. We believe that Apple launch the iCamera not only attract the youth, but also attract travelers to purchase. The instant share function and the powerful pixel can satisfy the segment who like selfie. So this is the profit opportunity we found for Apple to acquire new customers.

Step 3 Tactical actions

Create new product-iCamera

Apple R&D team can create iCamera to fulfil the people who like taking photos. iCamera is a breakthrough of the traditional camera. Firstly, the weight is as same as two iPhone, which is much lower than traditional camera. The screen size is as same as iPhone. Secondly, there is only one camera shot but with 15 million pixel. This definitely is a surprise to youth who are the super fans of selfie. 15 million pixel means the resolution is level up and higher than iPhone by two times. Each photo can be with more details and looks real.

The free image processing apps are available for iCamera, such as Beauty plus and Pic Collage, enable to add stunning effects to the photos. Moreover, live streaming video app, Periscope, allow user to take a short and live video. iCamera is an innovative way to change the style of photography. In addition, the Wi-Fi wireless function allows the users to transfer to other electronic devices and share on social networks as well. Youth desire to get likes on Instagram, Twitter, Facebook and so on, iCamera obviously satisfy the desire.

Develop apps

Apple ought to continue developing more funny and useful apps. Then, it has to encourage the users to consume apps service. The users of iPhone or iPad, they may only tend to use free apps. So Apple has to create some apps are essential to install in iPhone or iPad. Apple should focus on the apps which charge fees. For instance, it can create a list of Best App of 2015, this guide can raise the download rate