Tim Cook (CEO, Apple Inc.) understood that the majority of people don’t buy Apple products because they are better, they buy them because it raises their status. People wait in line because owning an Apple product increases their status and they feel good when other people see what’s in their hands. Apple uses the technology ratchet to turn the handle on status and luxury. Tim Cook understood this metrics and all he had to do was to watch and understand what was going on in the Apple stores. This turned Apple into the biggest and most profitable luxury brand in history.
I have spent many hours doing “mystery shopping” - watching what happens when people visit stores. Martin Lindstrom was hired by some of the world's leading brands to find out what makes their customers tick. As consumers do not tell you how they see the world, on the other hand they give it all away by the stories they tell. I would recommend that you read Martin Lindstrom’s book “Small Data” as it has many small clues that may help you uncover the next trend.
Seek and you shall find
I have always watched what happens when people visit stores, where do they go and what do they talk about? They are not going to tell you, but they will give it all away by the stories they tell while under observation. A common mistake marketeers make is assuming that other people see the world the way you see the world. This takes the form in thinking that other people believe what you believe, thinking that other people fear what you fear and everyone wants what you want. And when you are a marketeer, this is always a mistake!
Each of us walks around with a world view that we are certain is true. Our belief about money, about strangers, about places, etc., we think that it is true and that’s why it’s so hard to have a rational conversation with someone who holds opposing views on politics, race or religion. This is because their world view has surrounded them with enough narrative that they are sure they are right. It does not matter if you have scientific evidence, they do not want to believe you because that’s who they are at that moment. I certainly know that my world view is not the the truth of the world.
Apple CEO Tim Cook
What Tim Cook understood when he took over at Apple is that many people don’t buy Apple products because they are better, they buy them because their status goes up. People will queue overnight to get the latest Apple device because they feel good when other people see what’s in their hand and their status goes up.
There has not been one important innovation has happened under Tim Cook’s leadership, this is not a criticism, as he developed the biggest, most profitable luxury brand in history. Apple just use the technology ratchet to turn a handle on status and luxury. Tim Cook and his team understand this simple formula and all they had to do was watch what was happening in an Apple Store.
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