#introduction
Xiaomi Company is a Chinese company that specializes in electronics. Effective business strategies are critical concepts for corporation success. The company has achieved customer satisfaction since its creation. The company places customer on the forefront as they are target market for the business. Studying consumer behaviour has made the company thrive and achieve its goals and objectives and compete with other successful companies like Apple, Samsung and Huawei. The report will assess the company competencies in customer management. It will also discuss weaknesses in customer management performance.
#organizational summary.
The corporation was established in April 2010. Its headquarters are located in Beijing, China. Xiaomi specializes in smartphones, laptops, mobile software, bags, shoes and other products. It has developed mobile chip technology. It was the fourth company to discover the technology after Samsung, Huawei and Apple. Xiaomi released its first smartphone in 2010. By 2014, the company was china’s most significant selling smartphone company. In 2018, the company was the fourth world’s largest smartphone producer in China and second-largest market shares in India.
By 2019, the company was ranked fifth smartphone segment among 40 regions. It later established a more comprehensive range of consumer electronics connecting over 100 million smart devices in the home. Xiaomi increased its market shares in 2019 to 291.6 million in 2019. The company has 16,700 staff worldwide. It has expanded its market segment into South Africa, Southeast Asia and Western Europe. Lei Jun (2019), stated that the net worth of the company was US$12.5 billion. He was the founder and CEO of the company.
The company received from investors of US$ 1.1 billion, increasing its value to US$46 billion. The company ranked 468 out of 500 successful young corporations in 2019, fortune global. According to Forbes magazine, the company’s smartphone shipment increased to 125 million units in 2019. It was ranked fourth in highest phone shipment across the world and first in India. The company applies new social networking services in advertising its products. According to Lei Jun, he argued that the company prices its products at the bill-of-material cost. It has flash sales online, and it balances demand and supply to ensure they don’t run out of stock. The company values customer feedback on its website after testing Xiaomi products.
#customer acquisition, retention and development
Xiaomi did not own a physical store because the products were in high demand. The company employed customer segment to boost the market shares. It reduced the overhead costs in attracting more customer shares. To satisfy customers fully, it did away with the traditional method of advertisement and adopted modern methods. It opened space for customer participation in evaluating Xiaomi products. The company provided feedback to customers winning their trust in their products. The company took customers feedbacks as positive critics which helped the company to improve its services. The company places cheap batches on their marketing platform than their competing companies. Xiaomi has massive online traffic of customers whereby the company interacts with customers daily. The company employs a business strategy model called “design as you build” strategy. It ensures maximum satisfaction for the customers. Once the company receive modification suggestions from the customers, it directs the engineers to develop the products in favour of the customer. The company is committed to offering the best services to their clients. After the product has been developed, immediate shipping is done. The company ships its products once per week every Tuesday at noon Beijing times. Products are delivered in time to the customers who provide feedback on receiving the product of their choice.
Customer acquisition, retention and development strategies are beneficial for the company to thrive. Several strategies are profitable to Xiaomi in ensuring customer satisfaction, trust, loyalty and customer commitment has been achieved. The corporation should focus on onboard strategy. The approach ensures that customers are practically shown on how to use the devices rather than reading manuals for themselves. Company representatives undertake training in its outlets to inform the customers. The customer feedback loop is another strategy. The approach has been discussed in the customer segment.
Xiaomi should develop communication calendar for the customers. Advertisement team should be proactive in managing customer engagement and creating opportunities in upselling and cross-selling. It gives track of customer interactions achieved through promotional offers. The company should identify its loyal customers through discounts. Xiaomi Company has a variety of products and services; therefore employing the strategy will retain customers and provide maximum satisfaction.
Customer advisory board evaluates customer’s feedback and areas of improvement identified. The strategy helps in fine-tuning the Xiaomi products and services to suit customer’s interests. Customer’s testimonials should be given priorities because they are one interacting with the brands. Corporate social responsibility strategy will be of benefit to the customers. The company is supposed tom examine its products and services to ascertain whether they are genuine to their brand users. It should evaluate the core values of the customers, which shows customer commitments to their interests. It can also use company Newsletter in providing feedback to customers. Xiaomi can adopt the strategy of sending messages to customers. It informs customers about the company’s updates through their emails.
#sustainable customer management
Gartner competency model
Gartner competency model explains eight competencies that Xiaomi should focus on ensuring sustainable customer management. The eight competencies have been presented in a diagram on the appendix section of the report. They include vision, strategy, valued customer experience, organizational collaboration, processes, information, technology and metrics.
Gartner’s CRM model will provide a sense of direction for the Xiaomi Company. The segment will ensure that the company establish a vision that enhances space for customer engagement. Xiaomi visualizing on customer satisfaction will boost its revenue through practising inspirational leadership. CRM strategy will assist the company in setting achievable objectives and value segmentation for the customers. By understanding the policy, Xiaomi will engage customers and analyze their goals and objectives. The company will, in turn, deliver products that align to customer interests. Proper instructions on the use of the products will be offered by the company’s marketing team in building customer satisfaction. It will be achieved through customer engagement.
The corporation should develop valued customer experience as a long-term goal for the company. The strategy is achieved by considering customer’s critics as positive. Customer feedback should be appreciated and improvements made where necessary. The plan will increase customer engagement leading to customer satisfaction. Organizational collaboration competency provides a customer-oriented culture. The company will ensure it takes into account customers and the staff decision for effective service delivery. CRM processes strategy ensure the company value the customer life cycle. Xiaomi should provide extensive communication channel through IT to meet its goals and objectives.
CRM information strategy will help the company to filter relevant information from customers and analyze it. Information gathered will assist I decision approaching the company. CRM technology competency provides basics in developing a customer-based approach in finding solutions. Effective technology should be embraced. Intensive technology and IT inclusion in the company will assist in reaching the highest notch in sustaining customers. CRM metric strategy will help the company in examining internal and external factors for the success of the company.it will promote customer service delivery and boost their loyalty.
CRM value chain
The model is divided into five stages. Customer portfolio analysis stage will help the company to extract information from the customers about their needs and interest. Customer intimacy process enhances customer interaction in the long-run of the company. Network development strategy involves the relationship with both internal and external environment. It will provide a harmonious working environment in satisfying customer needs. Value proposition development help in creating relevant services to customers. Managing customer lifecycle stage will ensure the company offer quality services and products to the target customers. Therefore the company is required to examine its structures and processes to ensure acquisition, retention and development of customers has been achieved.
Positive impacts on customer lifetime value
The model will have several implications for customer management. The model will provide value for customer management. The modules give a solution to the value of the customer. The models will provide information in understanding customer relations and their interests. The models offer areas of improvement in the long-run. Gartner’s model also includes information on the over-delivery of products and ensure products and services are within customer consumption limits.
Weakness in customer management performance
- Lack of commitment of managers
- Having many measures for implementing performance management that is not achievable.
- Poor employee management which affects company performance
In conclusion, Xiaomi Corporation is a successful electronic company in the world. The company has thrived due to applying effective mechanisms in customer retention, acquisition and development. It values customer engagement as their primary goal. The two modes discussed would provide active customer engagement in maintaining sustainable customer management. Finally, weakness in customer management performance may affect Xiaomi performance.