How Apple Gets The World To Buy The Same Thing Over And Over

On September 21st, millions of people across the nation will stand in line for hours for the privilege of paying $800 for a product that does almost exactly the same thing as the one that they probably already own. Analysts predict that Apple’s iPhone 5 could become the highest-selling gadget of all time, and could even raise the U.S. GDP by .5% – and Apple’s total revenue by $36 billion. But the list of differences between the iPhone 5 and its predecessor , the 4S, practically stops with the name. I know some of you die-hard Apple buyers will dispute this (the screen is bigger! the processor is faster! Siri is Siri-er!), but the Cupertino company has been essentially re-releasing the same product for the last 3 generations, with each new phone making more and more money.

But why? How can people drop their paychecks for something they already own (or can find cheaper elsewhere)? As one Apple fan rabidly blogged, “One thing that Apple has taught the world is that it’s the experience that matters, not the feature set.” I couldn’t have said that better myself. Apple has reached such consumer prominence that they aren’t selling the functionality of their product as much as a status symbol.  Consumers eagerly buy the latest edition of the Apple line, not for the benefits the phone adds to their lives, but for the way owning such a product makes them feel. In a sense, the iPhone has become a purchase of identity – a product that not only communicates with the Internet for the user, but also communicates to the outside world a sense of importance and modernity about its owner.

If a phone is now a symbol of prestige, imagine how this feeling of customer experience impacts car shoppers. If Apple’s iPhone is any indication, features like fuel economy and trunk space matter less to the buyer than the image their new car conveys about them. Mercedes and Lexus convey a message about wealth. Hybrid cars have become rolling bumper stickers for environmental activism.  Large trucks are symbolic of masculinity and southern identity. While consumers want to believe that they are rational buyers, these subconscious indicators of identity are the biggest sales drivers for major purchases. The key is to align your sales techniques with these secret consumer desires.

ActivEngage CEO Todd Smith is the undisputed master of behavioral marketing in the automotive industry.

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