Using appropriate examples from the case study below, critically evaluate the usefulness of the SERVQUAL Model to analyze Service Gaps in apple.

Ask the average person which tech company offers the best customer experience, and Apple often comes first to mind. Even though the tech giant has about one-fifth the number of stores as Best Buy, it makes five times the sales per store. Apple’s customers keep coming back for more, with a loyalty rate of 90%.

As influential as the late CEO Steve Jobs was to the company, he often drew his inspiration from other experiences customers enjoyed outside of the tech sector. Jobs did not want Apple to be the best company in its industry; he wanted it to be the best company and be the reference.

When he was getting ready to open the first Apple stores in the early 2000s, he asked his employees to share their best experiences as customers. A similar answer came back from almost all of them: the most enjoyable customer experience took place at a Ritz- Carlton hotel or resort.

So, Jobs sent all his store managers to the Ritz-Carlton hospitality training, which emphasizes the brand’s philosophy of offering personalized service and anticipating guests’ needs. These techniques eventually set the foundation for Apple stores.

Walk into an Apple store today and you will notice the same personable and straightforward approach to customer service as the Ritz - a warm welcome, friendly demeanor and once they get to know your name, a personalized greeting.

You might even recognise that Apple stores are designed to remind the customer of the type of service at a hotel - the Genius Bar in place of a concierge station.

The first Apple store opened on May 19, 2001, in Tysons, Virginia. Then, the price of an Apple share was $1.68. Today, Apple is one of the most valuable companies in the world with shares worth nearly $200. Apple has since opened 506 stores across 24 countries attracting 500 million visitors a year.

When experts analyze what Apple has done right, they often focus on product

development. Innovative items like the iPod, iPhone, and iPad created new markets and attracted millions of customers. However, underpinning the growth of the company is an obsessive customer service culture aimed at turning one-time buyers into customer advocates.

Apple stores have been a central part of its customer experience since Steve Jobs took over in 1997. It has been able to choose the right channels to engage with customers. Before that, Apple computers were sold through chain stores and other authorised outlets. The company was not comfortable with this model as Apple was tied up with over 10,000 third-party retailers. After that, the company opened the first Apple store and overhauled its entire website.

Apple discovered that service provided by third-party resellers does have an impact on the company's reputation. Apple decided it was not comfortable with this trade-off and made the decision to move customer service in-house. This gave Apple control over every part of the customer experience.

The transition from third-party sellers to running its own stores gave Apple more control over its customer service. It controlled all aspects of the customer experience from the layout of the store to how employees interacted with customers. Much thought went into the first Apple store when considering its design. The first store was broken down into three distinct sections:

• The entrance of the store showcased the Apple product line, broken down by target demographic.
• The center of the store was devoted to examples of how a person might use an Apple product. This part of the store was broken down thematically with sections for music, movies, photos, and kids.
• The back of the store hosted the "Genius Bar." This is where customers could get products repaired and resolve customer service issues.

These three parts align with the final stages of the customer journey. This setup ensures customers not only learn about products but also try them in the store. After purchases, Apple makes it as easy as possible for customers to get their problems resolved by offering support within its store.

This focus on controlling the customer experience at the point of contact has played a pivotal part in creating Apple's legion of fans. And, given how many people at the time expected the stores to fail, this model proved to be surprisingly profitable. Apple stores have the highest sales per square foot in the US retail market.

Apple has put much effort into investing in customer service training and developing a system for managing customer interactions. The company wants to create a positive impression on every customer and understands that the best way to do this is by training its staff to meet those expectations. Apple expect the staff to provide great customer service and has invested much time and resources to train them. People skills should be a core part of their support team's new hire training model. Creating this consistency is especially important for global companies that want to provide an excellent customer experience.

Apple has a rigorous hiring process. Depending on the competition for a job, candidates may have to complete five interviews over six weeks before they're selected for a position. Store owners are taught to consider more than academic qualifications when hiring a candidate. Two major questions that Apple employees ask are:

• Can this person provide a Ritz-Carlton level of customer service?
• Do they display grit? Or to put it another way, could they have gone toe-to-toe with

Steve Jobs?

When it comes to grit, Apple is looking for people who are determined to achieve goals. Additionally, it wants employees who can offer critical feedback when necessary. This helps avoid groupthink, which negatively impacts organizations.

The outcome of this hiring philosophy is a diverse workforce who come from very different backgrounds but share key character traits. Apple believes that diversity in the workforce and difference of opinion can be a strength that brings out the best in everyone.

Apple is not after a quick buck. Instead of simply throwing money at ads, Apple has implemented a long term customer first strategy. The aim is to build a genuine relationship with customers and reduce customer churn. For example, employees at an Apple store do not have sales targets. Instead, they're trained to engage visitors and sell the A.P.P.L.E. way.

• A - approach the person in the store with a personalized welcome.
• P - probe to understand what the person is after.
• P - present a solution for the customer to take home.
• L - listen for and resolve any issues or concerns the person might have.
• E - end the conversation with a fond farewell.

Apple employees also have proactive service features that make guests feel comfortable when they walk into a store. For example, if you book an appointment to get a product repaired the employee at the front of the store will take your information. Then, this information is passed to the Apple Genius who uses your name when introducing themselves.

The Apple service model aims to make the customer feel comfortable in the environment. It shares many of the same characteristics as you would find in the hospitality industry because Steve Jobs borrowed the Ritz-Carlton service model.

Just as Ritz-Carlton employees must anticipate the unexpressed wishes of their guests, so does the Apple staff, who are instructed to “listen for unresolved issues or concerns.” If a PC owner is thinking of switching to Mac, an Apple employee might spend more time talking about the simplicity of learning a new system and give detailed explanations about data transfer between a PC and Mac.

Employees can schedule visits ahead of time to ensure they are always available to meet with customers and answer their questions. Customers have access to plenty of pleasant distractions to occupy their time while waiting for service. Salespeople also simplify check-out by bringing a credit card reader to the customer. At Apple and the Ritz, employees are solving problems you didn’t even know you had.

Apple stores’ phenomenal success shows that borrowing practices from great companies outside of your industry can provide game-changing results. The Ritz’s Gold Standards are simple, well-established, and easy to follow. They are implemented by establishing precise customer service standards, ensuring that good practices spread companywide, and, most importantly, engaging and empowering employees will help you create a customer experience to brag about.

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