How to benefit and reward customers, that works much better than price?

When Steve Jobs offered a $200 discount to the late iPhone adopters, it really got the early adopters who had paid the full price of $599 pretty upset. Steve wrote a personal note to all his iPhone customers and decided to give early adopters a $100 store credit in return. It probably helps a lot to prevent the situation from turning worse, but it also cost him about $20 millions of profit. If Apple were to take a funnel vision, realized that the crowd would not be happy about the discount, and deploy their tactics differently, would things turn out differently?

Seth Godin suggested a few other tactics for Apple. Personally, I would not believe in using the tactics of price reduction to Apple product especially to late adopters, because Apple’s products are in fact of a great sense of prestige and standard as the image that it always portray.

I remembered Jay Abraham mentioned about not lowering yourself and your value. And I would think if this were to be done without direct engagement in price, but rather increase in the after sales or freebies or discounted add-on accessories, whereby it would not directly impact on the early adopters, things would probably be different and perhaps the $20 million would probably decrease to less than a quarter of the cost for the additional freebies or discounted add-on.

I believe people would not mind if the company were to do it indirectly, in the right way. As cited from Seth’s post, people in coach would not mind about first class seat and service, or probably VIP front row sit in an event, or so. And those who are not in the first class seat or VIP seat, are fine with the fact. These have hereby, clearly determined the fact that people would not mind about being treated differently, as long as the right way to do it is implemented in place.


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