Saturday, February 20, 2016

Priorities in a Time of Plenty

Horace Dediu:

Looking at Apple this way gives the impression that the company has a large number (nearly a billion) of repeat (subscribed to service) customers. These customers can be seen to spend a predictable recurring amount (average selling price) on Apple’s brand. The repetition of these metrics in public commentary suggests that customer acquisition and retention are among Apple’s goals.


Seen this way each centralized resource allocation question can be assumed to be prefaced with “In order to create/preserve customers should we…?”

This leads to answers quite different from questions that start with “In order to sell/profit more should we…?”

For instance, offering education products, retail store experiences, healthcare products, green energy initiatives, accessories, content and services make sense even if they may have poor financial “returns”. These initiatives score highly on customer retention and satisfaction. They may lead to engagement and repeat sales.

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