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Apple Case Study Aspects of Experience Co-Creation. June 13, 2007. The enclosed material is proprietary to the ECC Partnership and is for the internal use of the addressee only.
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Apple Case StudyAspects of Experience Co-Creation June 13, 2007 The enclosed material is proprietary to the ECC Partnership and is for the internal use of the addressee only. Francis J. Gouillart The Experience Co-Creation Partnership 100 Main Street, Suite 130Concord, MA 01742 Mobile: +1 781 888 0186 vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Contents • What is experience co-creation? • Experience co-creation at the strategic level vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Historically, Business Has Been about Designing, Making and Selling Competitive Products and Services … Company The Firm Passive Customers Marketing Channels Suppliers … and Most Functions and Processes Have Largely Been Focused on Creating an “Inside-Out” Efficiency for the Firm SCM Passive Customers ERP CRM vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Today, Individuals (Customers) are Highly Connected and Informed, and are No Longer Passive Recipients Company Customer vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
What Customers Want is a Unique EXPERIENCE in Interacting with the Company … EXPERIENCE Back room Points of customer interaction Customer Company … and the best experience is “co-created” between the company and the customer vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
The Co-Creation Platforms Produce a Dual Set of Benefits for Both Parties EXPERIENCE Increased knowledge for company Differentiated experience to customer Lower cost and risk for company Lower cost and risk for customer Customer Company Experience Co-Creation Platforms vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
In Addition, Customer Communities are Becoming Involved on the Customers and on the Network Side Customer Communities Network Resources The Apple music offering is an example of a co-created experience and of the use of a customer community. vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Contents • What is experience co-creation? • Experience co-creation at the strategic level vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
With the iPod, Apple Generated A New Environment to Experience the Music (“Music Access and Listening” Experience Environment) vramaswamy@eccpartnership.com fgouillart@eccpartnership.com Source: Venkat Ramaswamy, Francis Gouillart
Through iTunes, Apple Has Opened Up the “Music Management and Downloading” Experience Environment vramaswamy@eccpartnership.com fgouillart@eccpartnership.com Source: Venkat Ramaswamy, Francis Gouillart
Through the iMusic Store, Apple Has Opened Up the Music Browsing Environment vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Through iMix and the Sharing Playlists, Apple Allows Music Fans to Interact With a Community vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Apple Has Added Many Environments to the Original Ones: iPod Photo, iPod Video, iPod Your Car, iTunes Phone vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Apple’s Retail Stores Stand Out And Have Been Highly Successful • 160+ retail stores • Revenue per square foot: $2,489 • Compared with $971 per square foot at Best Buy. Source: Apple web site , and Company 10Q Report Dec. 2005 vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
The In-Store Testing Environment Enables Hands-On Learning and Product Trial vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Learning How to Do New Things With Apple Products vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Apple’s In-Store “Genius Bar” Provides Interactive Teaching, Advice, and Hands-On Technical Support for Customers Number one question: “How do I get music inside my iPod?” vramaswamy@eccpartnership.com fgouillart@eccpartnership.com
Over a Short Period of Time, Apple Has Redefined Many “Experience Environments” Which Are Smoothly Linked Together 3. iTunes “music browsing” experience 2. iTunes “music management and download” experience 4. iMix sharing playlists experience 1. iPod “music access and listening” experience 5. Apple in-store experience 8. Apple phone experience 6. iPod photo management experience 7. Apple video experience vramaswamy@eccpartnership.com fgouillart@eccpartnership.com Source: Venkat Ramaswamy, Francis Gouillart