Tesla’s ‘Apple Effect’ and how similar both companies’ customers are

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Tesla’s ‘Apple Effect’ and how similar both companies’ customers areEvoto RentalsFollow4 min read·Jun 12, 2017 --


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Tesla’s Apple Moment, Apple Effect and the true difference


There have been many articles comparing Tesla to Apple and going far enough to claim that Tesla’s “Apple Moment” will be when they launch the Model 3. Different reporters have made the


metaphor citing the long lineups for the Model 3 similar to those lineups for the iPhone. The reporters on CNBC’s Fast Money went as far as to say Tesla was a “hype stock” and that it would


be wise “to at least take some money off the table” back when Tesla’s stock was at $229 US. You can watch the video here: http://video.cnbc.com/gallery/?video=3000505824


However, nothing could be further from the truth. Just because people line up for a product launch & there is great customer anticipation of these products doesn’t make the companies or


their stock any similar. People lined up for Adidas’s Yeezy shoes, Snapchat’s Sunglasses, and yes even Supreme’s Brick yet these companies remain quite different


The truth is Tesla is similar to Apple but not due to its lineups and definitely not due to its stock movements. It is not merely a fleeting “Apple Moment” but rather, an eternal “Apple


Effect”.


The similarity lies in the customer experience and how the two companies treat their customers. Furthermore, their customers are very similar:


Both companies manage and control the whole customer experience throughout the sales cycle. They both don’t rely on dealers or franchises but open their own stores in each territoryBoth


companies enjoy enormous brand equity where the perception of the brand is matched or surpassed by the reality. They both charge a premium for their brandsBoth companies built a closed


ecosystem of products & services which lures customers into it with one gateway product; (the iPhone or the Tesla car)The sales cycle from their websites to their stores are top notch. Their


after sale experience is second to none with Apple’s Genius Bar & Tesla’s Service Centres. This is enforced throughout the corporate culture engrained into each companyBoth companies


listen, and quickly adapt to their customers. Elon Musk replies and actions Tweet suggestions while Tim Cook replies and considers customer emailsMost importantly, customers of both these


companies do something, few other companies have ever experienced: When there is a defect or default in their products, customers do not complain, bitch or moan. They merely mention the


issue with a smile on their face and are happy to get it fixed. They almost feel like its a privilege to have such products, and feel bad for those that haven’t experienced itThis makes


these customers die hard fans or fanatics just like when a person is a lifetime fan of a sports team, they never bad mouth their home team or switch sides to support another. They stick with


them through the thick and thin, making all Apple / Tesla owners a tribe, a community that feel a strong sense of belonging and are the greatest mouth piece any advertiser can ever buy.


This is not to say that Tesla will also have its “Apple Moment”. If you define Apple’s “Apple Moment” as the time it went from a niche to the mainstream, I would argue the real moment was


not when the iPhone was released but rather when Steve Jobs launched iTunes on Windows. This allowed the iPod to be accessible to everyone, not just Mac users. This “Moment” for Tesla will


not be when the Model 3 comes out, but rather when (if) Elon Musk opens up the Supercharger Network to all electric car users and sell adaptors that go the other way: From Tesla connectors


to those used by the Leaf, Prius, Bolt and all other EVs.


“Tesla is ‘actively talking to other automakers’ about opening up its Supercharger network, says CTO JB Straubel”


This will partially help in making Tesla the world’s most valuable company. You can read more on this in my other article: “How Tesla will become the world’s most valuable company”


While the “Apple Moment” is a turning point in history, the “Apple Effect” is an end result defined by the relentless struggle to master the perfect customer experience.


This is the true “Apple Effect” that Tesla, Harley Davidson and a few other brands ever achieve. When customers are willing to get tattoos of a brand’s logo on their skin, that is the clear


sign of this effect. It is not merely an “Apple Moment” but rather an everlasting effect. Many strive for it, hardly a few ever reach it.


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We are a team of Tesla enthusiasts & EV evangelists committed to a clean, eco-friendly future with sustainable transport & clean energy. Experience the advanced tech of a quiet, safe &


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