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Apple Watch’s retail sales pitch revealed: 3 key features, switch to iPhone, focus on bands

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With next week’s Apple Watch event fast approaching, Apple has revealed its retail selling strategies to employees, including a focus on “three key features” and a plan to encourage Watch customers to upgrade or switch to new iPhones. According to selling guidelines provided by sources within Apple Retail, Apple believes that “many customers have already decided they want an Apple Watch,” and will use the Watch to “position the benefits” of purchasing a compatible iPhone model. Retail employees have been told to ask customers about their iPhone usage habits, their favorite feature in iOS 8, and if they use health and fitness software on their iPhone…

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One of the more striking elements of Apple’s sales strategy is a stated confidence that “many customers have already decided that they want an Apple Watch.” Operating under this assumption, Apple employees have been told to ask customers a series of soft questions in order to make the sale, rather than making a hard sales pitch. Salespeople are asked to “listen for cues that reveal what [the customer cares] about” so that they can make purchase recommendations. Questions include, “What interests you the most about Apple Watch?” and “How do you see yourself using Apple Watch?”, as well as asking the customer to explain who the Watch is for: “is it for yourself or someone else? Is there a special occasion?”, the script reads. This indicates that Apple believes Apple Watch may have special appeal as a high-end gift for other people, rather than the customer himself or herself, something Apple has not explicitly pushed for the cellular contract-dependent iPhone.

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Using the Apple Watch as an opportunity to sell iPhones is another interesting element of Apple’s sales strategy. Apple CEO Tim Cook previously dedicated four-hour meetings with Apple Retail Store managers to discuss boosting sales within Apple’s own stores, and the Apple Watch launch will be another occasion to pitch customers on the high-margin smartphone. iOS 8 notably added the Health app and HealthKit, which aggregate fitness and health data, tying deeply into the Apple Watch experience. Given the Apple Watch’s dependence on an iPhone running iOS 8, Apple Retail employees are also specifically told to encourage customers “who don’t use iPhone to switch now so they’re ready for Apple Watch later.”

Apple Watch image via AP

Although many people expect next week’s media event to focus on new selling points for the Apple Watch, the pitch interestingly focuses on promoting “3 Key Features” previously highlighted by Apple during the first Apple Watch reveal in September 2014. These features are “Health and Fitness,” “New Ways to Connect” [with people] and “Timekeeping.” Apple notably spotlights Health and Fitness first, and discusses it the most, saying much less about the communication and timekeeping features.

Yesterday, we reported that Cook teased a number of upcoming third-party Health and Fitness applications expected to launch alongside Apple Watch, and will likely be revealed at the March 9th “Spring Forward” event in San Francisco. The New Ways to Connect feature mentioned in the training materials references the sharing of heart beats between two Apple Watch users, while Timekeeping refers to the device’s clock faces with digital complications and information widgets.

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Lastly, Apple asks employees to discuss personal style such as “customer needs, tastes, and material preferences” with customers. The Apple Watch comes in three styles, an aluminum sport version, a shiny stainless steel design, and a flashier 18-karat gold model, and this is where Apple will help determine which collection should be recommended to the customer. To narrow this down, Apple asks employees to ask the customer: “Are you looking for a watch that’s more casual or formal?” and “Do you prefer metal or leather bands?” The employee can use these questions to determine whether the customer is looking toward the entry-level Sport model or one of the two more premium options. Only the stainless steel and gold models are pre-sold with bands other than the plastic sports straps; the stainless model can be positioned by asking customers if they prefer metal bands.

Additionally, Apple tells employees to ask an accessory-related question: “Would you like different bands to suit different occasions?” On the surface, the question seems innocuous, but points to the fact that Apple is hoping that Apple Watch will simultaneously invigorate its accessories business, a point confirmed by Senior VP of Retail Angela Ahrendts last week in the first ever Town Hall meeting for Retail employees. According to people in attendance, the meeting for corporate retail employees took place in the Cupertino Flint Center, where the Watch was first unveiled. Among several topics, Ahrendts is said to have specifically named accessories as one of the three most critical facets of Apple retail going forward, alongside iPhones and sales in China. We reported last month that Apple would individually sell different Apple Watch band options in its stores at launch, meaning that a customer could buy a Watch from any collection with its included band, then buy separate bands to rotate styles to their liking.

Apple Watch table from Event - BusinessInsider

Apple Watch table from Event, Image Credit: Business Insider

During that Town Hall meeting, Ahrendts also discussed an upcoming revamp of the Apple Store sales experience, indicating that Apple will move to a model more personalized to individual customers. Apple has internally discussed new retail store layouts and sales methods in light of the Apple Watch. The company has installed safes inside of Apple Stores to house the more expensive device, while it is also planning to set up new glass-covered Apple Watch display tables similar to those at the device’s unveiling. For the gold model, employees are expected to use a special iPhone app to unlock the table, enabling customers to try on the more expensive watch. Apple is also considering a new “Special Reservation” program for customers to pre-reserve a custom Apple Watch casing and band combination before going into the store, trying it on, and completing the purchase.

While Apple has said that the Apple Watch will go on sale in April, the company has not officially indicated the launch countries. Besides the United States, Cook told retail employees in Germany that the device will be available in their country in April, while sources say that retail employees from Australia, France, and the United Kingdom have been trained in Cupertino about the Watch, indicating an April debut for those countries as well. The Apple Watch will start at $349 for the aluminum Sport model, with the stainless steel and gold models expected to be priced much higher.

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Comments

  1. Zac Hall - 9 years ago

    Apple Store employees can now train from the comfort of their own home!

  2. AL (@htowngator) - 9 years ago

    Anything beyond the standard $350 will likely be too rich for most people’s blood. I imagine the sport and regular model will get all of the sales attention.

    • Elias Sørensen - 9 years ago

      Think the split will be like: Sport = 3/6, Steel = 2/6, Gold = 1/6

      • Ron (@RonnieSaizWut) - 9 years ago

        ya or 1/2, 1/3, 1/6

      • Elias Sørensen - 9 years ago

        You don’t say so :D

      • Or almost 3/5, almost 2/5, and 0.1%

      • 1sugomac - 9 years ago

        80% Aluminum, 19% Stainless Steel, 1% Gold
        They are going to make a killing on the bands.
        40% of customers will buy 1 additional band
        20% will buy 2-4 additional bands
        1-2% will buy 5 or more additional bands

      • Bill Shamblin (@bshammy) - 9 years ago

        I’m not sure about that — these are people that have become used to spending $1000+ on computers. The retina iMac starts $2500. Apple customers skew higher income. Of course time will tell…

  3. chrisl84 - 9 years ago

    Ask if your customers have a spare $10K they can drop on a watch, if not, position them to a model more reasonably priced.

  4. rogifan - 9 years ago

    Both Angela Ahrendts and Jony Ive are reportedly against hard selling so it will be interesting to see what they do with the watch. I hope it’s more of a soft sell and more individual/personalized attention.

    • Jamie Gilder - 9 years ago

      I agree. I understand that Apple are obviously going to generate a lot of revenue from bands – but I don’t want to be hard-sold a few extra ones.

    • TechSHIZZLE.com - 9 years ago

      Like most other Apple products, retail staff won’t have to sell the items-they’ll sell themselves.

      Staff just has to make them available and answer questions.

      Then take the customers’ credit cards.

    • charismatron - 9 years ago

      I’m just as happy not to be “hard sold” anything anywhere, particularly at an Apple Store. God, that’d be awful.

  5. Scott Gerber - 9 years ago

    How is a watch that costs more than $350 “too rich for most people’s blood”, when the average iPhone user spends $650+ on a phone they upgrade every two years?

    • Because in the US, the subsidized iPhone is $200. Internationally it won’t be as big of a deal though.

      • And iPads which sold more than hot cookies? Did it start with $499?

      • Subsidized pricing is on the way out. The 4 major carriers are pushing installment plans now. Easy to multiply X 24.

      • @nilesmitchell You understand that subsidized and instalment plans are the same thing right? Subsidized: Phone $200 Plan $70/month/2 year term Instalment: Phone $650, $200 downpayment $20/month/24 payments Plan $50/month/2 year term

        In both scenarios you pay the same amount for both the phone and the plan the difference is showing you that your paying monthly towards the phone.

    • MGECOM, Inc (@mgecom) - 9 years ago

      I figured it is because the $650 is baked into the contract vs one time outlay? More than $350 could be higher than people want to drop at one time. It would (will) be too high for me, thats for sure.

    • chrisl84 - 9 years ago

      A watch and a phone are not in the same class. A phone can very well save your life in an emergency, a watch does not fit into that category.

      • Jesse Supaman Nichols - 9 years ago

        While I agree with the points made above about the contract subsidization, I think it is silly to position the iPhone as an emergency device. Can it save your life? Yes. But so could a $10 prepay phone. iPhone’s are bought for extra features and luxury. I think that fits right into the same category as a watch.

        Again, I’m not saying you couldn’t use an iPhone in an emergency. I’m just saying that if I had to buy a phone for the purpose of emergency communications, an iPhone would not be my first choice. You know what I mean?

      • chrisl84 - 9 years ago

        I do see that point as well, but the watch never fits into that class of device. Making its price point in comparison to a phone a little apples to oranges.

      • Jesse Supaman Nichols - 9 years ago

        Fair enough… =)

      • acslater017 - 9 years ago

        It could save your life by getting you off your ass. Or by making sure you notice that important message. Or by helping you keep your eyes on the sidewalk and not buried in your phone. Or by being your omnipresent communication lifeline, even when the phone is out of reach.

        Just saying.

      • Michael Stevens - 9 years ago

        Can I clear this one up for you? I bought the gold 128 GB iPhone 6 Plus and had NO problem laying down the money for it. Apple Pay and all the other features but mainly for the larger phone. I was all but convinced on the watch – had mine picked out – Apple Watch Space Black (I think that was the color) with the milanese band. It adds the convenience of Apple Pay to my arm and has health and Fitness for about $349. Now I realize that the Apple Watch is actually the middle tier (rather than the order that the tiers have been run in so far as I’ve seen) and that middle tier will cost much more than $349. So for $349, I get a watch with a plastic band. Now I’m thinking here. Phone has HealthKit – probably not to the extent of the Watch without doubt – and Apple Pay and a clock. So I spend “much more than $349” for a device whose features really overlap the phone? And the phone is still the primary device that I use and would be required in order to get the full functionality of the watch? You see where I’m going here? I had my watch picked out. I also had my price picked out. And while you may see them as the same or different categories, I see them as 90% overlap so now I have to step back and say which device to I need more? Wait, nope, wrong question there. Which device is independent of the other? iPhone 6 Plus. Does that device do 90% of the stuff I want to do. It counts my steps though it could be better at health and fitness granted, it tells me the time and supports Apple Pay even though, gasp, I still have to pull out my phone. Problem solved. Keep the watch and the damned plastic band and I’ll just stick with my phone as my communication device or emergency device or work device or game device or status symbol device or however you want to categorized it. I won’t wear cheap on my arm and I won’t pay “much more than $349” for 90% overlap. So, Houston, I have a problem with Apple Watch now if the Apple Watch is not the base watch. I really thought the Sport was being sold as the middle tier because of its ability to absorb all that sweat. Oh, well, I think my point is made that an iPhone user can very easily walk away from the watch unless they just have to have the next big thing from Apple. And, doggone it, I was 90% sold.

      • 1sugomac - 9 years ago

        Watches, jewelry, cars and houses are often status symbols. Many people buy a particular class of watches, jewelry, car or house to project an image of status.

        You are probably very happy with your Casio watch and your Chevy Spark but there are lots of people out there who will spend money they don’t have to have THE watch and THE car.

      • KevinQ (@ksuyen) - 9 years ago

        It’s fluoroelastomer, not plastic band. It is a special purpose fluorocarbon-based synthetic rubber. It has wide chemical resistance and superior performance, especially in high temperature application in different media.

  6. I hate when they schedule events 10 days earlier. The wait is driving me crazy.
    Cant wait!!!

  7. Padtopia (@Padtopia) - 9 years ago

    “Do you have an AmEx or Visa Black Card?” “Um, Yes” “Have I got just the Edition watch for you!”

  8. ruinelsoncarneiro - 9 years ago

    “Do you have an iPhone 5 or newer?”
    “No, I just go this ‘Galaxy Android’ phone, they said really good, and it’s better than the iPhone”
    “Okay, get out.”
    “but…”
    “I said OUT!”

  9. simo48 - 9 years ago

    I personally think that the New Ways to Connect features like sending a heartbeat and drawing pictures are not going to be used much. Read more about my opinion in my article on the Apple Watch. https://fivenm.wordpress.com/2015/03/03/why-im-getting-an-apple-watch/

  10. Steve M. Cess - 9 years ago

    God, I HATE retail sales………. was unlucky to have worked for J.Crew many many years ago and you were told to ask such stupid questions WHEN many customers wanted to be left alone. I strongly hating, having to ask, “what brings you here today?” Who cares? Leave me alone UNTIL I call for you. When I shop at Apple, I wanted to be left alone and much rather call on the help.

    • I used to work retail, and we did the same thing. As long as the employees have knowledge about the products then I found most customers are happier. I used to sell paper at Staples, no one knew a thing about paper. They all knew what they wanted: thick, glossy, matte, glossy on both sides, coloured but professional, etc. but they didn’t know how to read the measurements on the package and align those with their needs. I sold a lot of paper – a lot of expensive paper that way.

  11. The watch is a totally different market than the phone. Or at least it has been so far. People change (mechanical) watches only when they break down or when they want a change of style. To my knowledge, both happen rather rarely, especially the higher the price gets. I’ve bought a couple of other mechanical watches over the last few years, but I keep going back to my 1996 Seiko, for its sheer quality and elegance. I’ll ditch it only when an equally elegant smartwatch comes along that lasts minimum a week on a charge (and doesn’t cost $$$$).

    If  wants us to start buying and upgrading smartwatches every few years (my guess is 2 or 3), it’s looking for another $350-500 off our wallets a pop, on top of the $650-850 we spend on a biannual average rate for a new iPhone. Quite reasonable for the market segment and if it gets maybe 30% of iPhone owners into this loop, that’s quite some profit.

    Then, I wonder what the battery replacement fees will be like, especially assuming you keep the Watch for over two years.

    For me the Watch at the moment is 70% the next cool gadget to be seen wearing and 30% something that will give the wearer actual benefits (my biggest criticism being battery life and the overkill retina display). With this first iteration, Apple is testing the waters and it’s a shame that the actual guinea pigs will be buying the damn thing.

  12. jSeunnasepp - 9 years ago

    “Apple employees have been told to ask customers a series of soft questions in order to make the sale, rather than making a hard sales pitch.”

    Looked at negatively – this is manipulative.

    But from the customer’s POV – the associates are being trained on how to best help them. Remember – associates get no commissions so they have no motivation to push a sale.

    Apple took over the MP3 player market by clearly providing the very best – the iPod. They succeed in retail by providing best service to the customer. Apple has shown that if you focus on customers’ needs, then success will follow.