>> Originally published on LinkedIn on May 17, 2016
For the first time in more than a decade, Apple reported a year-over-year decline in quarterly revenue. Wall St analysts say it’s because of weak iPhone sales, which is certainly true—Q1 saw sales of 51.2 million iPhones compared to 61 million in Q1 2015.
https://media-exp1.licdn.com/dms/image/C4E12AQGz6HjsYUhrjQ/article-inline_image-shrink_1500_2232/0?e=1599696000&v=beta&t=vjGJsje0orR8mbApQVaD6GJxshTf67kVw_fwyhiiUw0
But Apple’s poor performance is only a symptom of a much larger problem: its marketing has become as stale as moldy bread.
Apple was once the pinnacle of branding. It released meaningful ads—like this one and this one—that challenged consumer behavior and drove sales. That success, in large part, was due to its old marketing team at TBWA/Chiat/Day (the agency and Apple began to split ways in 2014). The agency focused on telling Apple's story in a meaningful way that resonated with target consumers. They strayed away from selling Apple products through product features and competitive advantages. Instead, Apple’s ads followed a golden maxim in marketing: Features don't change behavior. Stories do.
Let’s pause for a marketing lesson. Simon Sinek—author, speaker and consultant—has a classic 2009 TED Talk called "How great leaders inspire action." If you haven’t seen it, it’s 18 minutes and a must watch. In his talk, Sinek explains how the most successful leaders/organizations are ones that start with why (or overall purpose). Once the "why" is understood, then brands have the authority to explain how they do what they do (their secret sauce) and what it is they actually do. Here’s a quick visualization of what he calls "The Golden Circle.”
https://media-exp1.licdn.com/dms/image/C4E12AQEeEptJedOH6w/article-inline_image-shrink_1500_2232/0?e=1599696000&v=beta&t=YQ6l1pSTxHCDPGXVfOM1xaHMj-kY3rQ-81LRHWhfmLg
Sinek's Golden Circle illustrates an essential marketing premise: in order for customers to want to buy something, they need to know how that product fits in with their personal brand—or how the purchase will compliment their personality. It's common for marketers, especially in tech, to want to sell a product on features alone because that seemingly is what makes the product unique. However, doing so ignores the emotional (and more valuable) reasons that create loyal customers and develop strong brands.
Here’s Sinek with an example from his TED Talk. Ironically it’s about Apple:
“If Apple were like everyone else, a marketing message from them might sound like this: We make great computers. They’re beautifully designed, simple to use and user-friendly. Want to buy one…Meh.
“And that’s how most of us communicate…We say what we do, we say how we are different or how we are better and we expect some type of behavior…Here’s how Apple actually communicates:
“Everything we do, we believe in challenging the status quo. we believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use and user-friendly. We just happen to make great computers. Want to buy one?
“Totally different right? You’re ready to buy a computer from me. All I did was reverse the order of the information. What it proves to us is that people don’t buy what you do, they buy why you do it…”
Think back to the early 2000s when Apple released iPod. After a few years of non-existent marketing, Apple released ads featuring silhouetted models dancing to popular music. And that’s when sales erupted.
https://media-exp1.licdn.com/dms/image/C4E12AQFx1Bi1L2Mtig/article-inline_image-shrink_1000_1488/0?e=1599696000&v=beta&t=xaEUQpGEEOuXlQRn1_0YqBRUjmrxMkD1IhiMtaGFg80
Let’s think back to Sinek: These ads said absolutely nothing about what an iPod was, what it did or how it worked. Not one product feature was explained.
The ad was cool. In true Apple form, it was different. It stood out and resonated with Apple’s key bet at the time: Owning an iPod is a fun and radically different way to listen to music and anyone who tries it will instantly fall in love.
This iPod marketing campaign showed us that in buying an Apple product, you will not only have fun, but also be considered fun. Through these types ads over the years, Apple transformed itself from just a tech company to a lifestyle brand. Owning an Apple product meant being associated with something fresh, exciting and creative. Wearing white earbuds became a status symbol. Owning a Macbook was a one-of-a-kind experience. People were hooked. Apple won.
Fast forward 11 years to the marketing campaign for iPhone 6s and Apple’s story turns bleak. Apple's campaign was fixated on the idea that "The only thing that's changed is everything." This story has no purpose. It has no true reason that explains why people—emotionally speaking—should buy. Take a look: