iPhone 4 debacle demonstrates importance of customer relations

Posted on July 26^th 2010

The recent success of the Apple iPad followed by the debacle surrounding the launch of the iPhone 4 has emphasised the importance of customer relations for many business liability insurance customers.

It seemed as though the re-born Apple of the last decade or so could do no wrong. Although Macs are still a minority player in the personal computer market the success of the iPod and then the iPhone had established them firmly as market leaders in easy to use and stylish consumer devices.

The astonishingly successful release of the iPad had cemented this reputation but then the blunders surrounding the iPhone 4 showed that no company is free from censure if they ignore customers.

By first ignoring the problem, that signal loss occurred if the phone is held in a certain way, and then admitting that it was a known problem which wasn't felt important enough to force a redesign, Apple has lost a lot of face. A recall of the product was never going to happen but Apple has now had to offer free bumper cases to all buyers.

The main learning point is to listen to customers when a problem becomes apparent and respond immediately. Today, when instantaneous global communication can destroy a company's reputation in days, even liability insurance will be pushed to provide adequate compensation.

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