Book Review: The Xiaomi Way: Customer engagement strategies that built one of the largest smartphone companies in the world
- Using user feedback into digital media (websites/devices), to really get this interaction with users. To find out what is working but also what to improve, and to understand why users do not buy! (and to change that of course).
- Optimizing the user experience (user engagement, touchpoints, data collection)
- Constantly innovating to improve the user experience
- Crossborder e-commerce
- Startup mentality, doing things together in a great team with the same focus.
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- The secret of success in Internet thinking is focus. Only if you remain focused on something you can be fast. Only if you are fast you can achieve “ültimate excellence””. Only if you have achieved ultimate excellence you can get a good word of mouth reputation. Only those who live by word of mouth reputation on the internet will survive.
- The traditional mode of doing things turns the relationship between a user and the product into a naked matter of money. Once the transaction is done, the relationship between company and user is cut off. Some companies even hope to have nothing further to do with the cusotmer once he or she has bought the product. Afer all, further entanglements might involve all kinds of post purchase demands, disputes, costs, and PR crisis. Instead a company has to make friends with users. Only friends will really help you pass on the word. The transformation in business models, to make friends with customers, is made necessary by the fact that we are living in an age when you cannot simply “sell” a product, what you are selling is a sense of engagement in the product.
- Word of mouth reputation is king! Yes, and in order to do one can think of many digital toolings that can be made, to make people interact about and with you! This can be done for any webshop!
- Branding went through an almost insane era, but now with the experience model coming along, many of those nicely “branded” companies have now disappeared.
- As this book is about smart phones, it sees three principles of engagement:
- Open R&D to users.
- Create an interactive design
- Promote through word of mouth.
- Consumers are also producers, the distinction between professionals and amateurs will fade.
- Consumers are playing a larger role in the process of creating value. Therefore companies must establish new organizational structures.”
- Within Xiaomi itself, we have created a well functioning system that allows us to improve product based on user responses. Xiaomi does not use key performance indicators. What drives performance is purely and simply the user responses.
- Between “good looking” and “easy to use””, easy to use should always win.
- Turn products into activities. In making products you have to use an operational way of thinking, that is, you have to plant things in the design of your product that become functions. Those functions themselves are links in activities.
- On Hiring: They had to have an extreme devotion to what they were doing. People with such an attitude are able to ignite themselves. They do not require external motivation and you do not need to manage them with a pile of KPI targets and management systems.
- Early Days: When the Mi 1 came out many people had doubts about the quality of China made smart phones. They could not believe Chinese manufacturers used the certified materials. When a journalist raised such doubts, Lei Jun would stop everything no matter what was planned. He patiently explain that our parts were supplied by world class suppliers and that we were using the same assembly plant that had previously been used by apple. He would even demo how our smartphone was unbreakable by throwing it at the ground 3 times!
- Previously companies had a “competitive mentality””whereas now the mentality is more about the product itself.
- Previously, the idea was to implant our thought into the customers consciousness, whereas now it is to infiltrate the consumers consciousness to obtain their thought!
- Even today we do our utmost best not to put out ads! That forces us to consider how we can get users to like our products voluntarily, on their own initiative.
- We never asked a celebrity to represent us. Our products themselves and our users are our stars.
- On service: We decided that adequate strategic investment had to go into customer service. We were faced with a major challenge, because our sales volume increased so fast. What that meant was that we had to outsource a considerable amount of customer servicing. Now we have 75 percent in house and 25 percent still outsourced. Still we feel that is not enough, I hope that in the future 100 percent of our customer service personnel will be our own employees. Only when people are part of the company will they have a great sens of identification with the job, only then will they feel that they are providing service to their own customers.
- On service: if service is not done within one hour, xiaomi will pay the user a voucher of 20 RMB, that is to have the user to feel the service is really fast. They made also an on site game of throwing large dices. If users have to wait more then an hour, they can play the game throwing dice, via which they can win small prices.
|Entanglement with it's customers: The Xiaomi Way book review|