Research On Social Media Marketing Form The Viewpoint Of Crm —— Taking .

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AcknowledgementsThis Independent study would have never been completed withoutthe valuable and kind support of several people. Firstly, I would like toexpress my sincerest regards to Dr. Om Huvanandana, my adviser, whodevoted his valuable time to encourage, assist and provide me with usefuladvice, and comments that made the completion of this study possible.Secondly, I would like to thank the Dean, Associate Professor Dr.Jomphong and the late Dr. Vijit Xupinit and all instructors at theInternational Master of Business Administration, Siam University whohad one way or the other made myself a successful candidate for SiamPrestige MBA. I also would like to express my appreciation to allrespondents who provided me with valuable information for this study. Inaddition, I appreciate the kindness of my friends and classmates who hadsupported and helped me to collect the data.Finally, I would like to express my deepest gratitude to my parents,thanks them for their understanding and support on my MBA study whichis very important to my future career. And I want to express my gratitudeto my dear partners Ou Shaoliang, for their concern, guidance andencouragement throughout my study and this research.

TABLE CONTENTCHAPTER 1 INTRODUCTION1.1 SIGNIFICANCE OF STUDY1.2 OBJECTIVES OF THE STUDY1.3 SCOPE OF THE STUDY1.4 EXPECTED OUTPUTS1.5 CONCEPTUAL FRAMEWORK1.6 OPERATIONAL DEFINITION1112234CHAPTER 2 THEORIES AND RELATED RESEARCH2.1 SOCIAL MEDIA MARKETING2.2 CRM2.2.1 “Customer-centric” is the core idea of CRM2.2.2 Objectives of Customer Relationship Management2.2.3 The role of customer relationship management2.2.4 Implementation Process of Customer RelationshipManagement2.3 RELATIONSHIP BETWEEN COMMUNITY AND CUSTOMERRELATIONSHIP MANAGEMENT5567899CHAPTER 3 METHODOLOGY3.1 RESEARCH DESIGN3.2 DATA ANALYSIS3.2.1 Market status of Xiaomi Company3.2.2 Customer segmentation of Xiaomi company3.2.3 Customer satisfaction of Xiaomi Company131313131922CHAPTER 4 FINDINGS4.1 CRM-BASED SOCIAL MARKETING STRATEGY OF XIAOMICOMPANY4.1.1 The Infrastructure Construction Strategy4.1.2 Identity Space Construction Strategy4.1.3 Interactive Space Construction Strategy4.2 SOCIAL MARKETING OF XIAOMI BASED ON CRM2626CHAPTER 5 CONCLUSIONS AND ENLIGHTENMENT5.1 CONCLUSION5.2 REVELATION333334REFERENCE36APPENDIX391128293030

Chapter 1 Introduction1.1 Significance of StudyXiaomi is a company that pioneered the smartphone Internetdevelopment model in China. This article will be taken Xiaomicompany's social media marketing activities for an example, from theperspective of customer relationship management (CRM) analysis. Thereare quite a few scholars in China and abroad who have explored theconcept and practice of social media marketing. However, most of theresearch emphasizes on two aspects: one is to elaborate and expand theidea of social media marketing; the other is recommending the relatedindustries or enterprises to put forward another marketing strategy. Basedon the perspective of customer relationship management (CRM) and thetheory of customer life cycle stage, in order to help Xiaomi company tobetter meet customer needs, improve customer satisfaction and loyaltyand improve their competitiveness, this paper analyses Xiaomi's socialmedia marketing strategy from the perspectives of customer acquisition,customer retention.1.2 Objectives of the StudyThe development of Internet technology makes network marketingmethods more colorful. Xiaomi company has maintained its rapid growthsince its establishment. From 2014 to 2016, for three years in a row,Xiaomi has taken the top 10 positions in the global smartphone market.Through research, lots of researchers found that Xiaomi surrendered more1

energy on the Internet than spend a significant cost on advertising thattraditional vendors such as Samsung did. According to statistics, Xiaomihas more than 30 million Xiaomi community users, more than 28 millionQQ zones fans and more than 13 million microblogging followers. Atpresent, the smartphones market tends to be saturated, whether inemerging markets such as China or mature markets such as the UnitedStates and Europe. In such a marketing environment, it’s a big challengeto use social media marketing to adopt marketing strategies effectivenessto meet the needs of consumers, improve consumer satisfaction, andcreate a brand image to enhance the competitiveness.This paper analyses the social media marketing strategies of Xiaomion the viewpoint of CRM and summarize the importance of both socialmedia marketing and CRM. The author hopes that this paper would bringsome enlightenment and provide some suggestions to Xiaomi companyand other enterprises in the smartphones market.1.3 Scope of the StudyThis paper taking Xiaomi company as a case study embarks from thesocial media marketing analyzed the social media marketing strategies ofXiaomi on the viewpoint of CRM, including Xiaomi corporation's currentoperating situation, marketing model, consumer satisfaction, and effectsof its social media marketing strategies. Through a case study,comparative analysis, and the method of sample analysis summarize theshortcomings and advice some improvements of Xiaomi's social mediamarketing, help Xiaomi company selecting movements accurately formarketing strategies.2

1.4 Expected OutputsThis article chooses Xiaomi company as the research case, analyzedXiaomi company's social media marketing strategy from the perspectiveof customer relationship management. In light of the actual situation, tryto put forward from the standpoint of improving the relationship betweenXiaomi company and its customer.Due to the limited time and energy, there are still some limitationsand shortcomings in this paper. The limited knowledge level of author,making the discussion of Xiaomi's social media marketing strategy andthe relevant theory is not tightly integrated enough. Also, due to the lackof internal data of Xiaomi Company, there are some conclusions andanalysis needs to improve. Therefore, this paper should be furtherenhanced and deepened.1.5 Conceptual FrameworkThis paper includes five chapters. Chapter one offers a briefintroduction of the research background; states the significance andobjectives of the study and presents an outline of the research. Sectiontwo is previous literature and related research on social media marketingand customer relationship management (CRM) in reading, theintroduction of Xiaomi company will also be presented in this chapter.Chapter three is an elaboration of research methodology, which includingresearch objective, subjects, instrument, data collection and anexplanation of the research results. Chapter four is the facts and findingsbased on the research results. Chapter five is the conclusion part.3

1.6 Operational DefinitionCRM: Customer relationship management (CRM) is an approach tomanage a company's interaction with current and potential customers. Ituses data analysis about customers' history with a company to improvebusiness relationships with customers, specifically focusing on customerretention and ultimately driving sales growth.Social media marketing: Social media marketing is the use of socialmedia platforms and websites to promote a product or service. Althoughthe terms e-marketing and digital marketing are still dominant inacademia, social media marketing is becoming more popular for bothpractitioners and researchers. Most social media platforms have built-indata analytics tools, which enable companies to track the progress,success, and engagement of ad campaigns. Companies address a range ofstakeholders through social media marketing, including current andpotential customers, current and prospective employees, journalists,bloggers, and the general public. On a strategic level, social mediamarketing includes the management of a marketing campaign,governance, setting the scope (e.g., more active or passive use) and theestablishment of a firm's desired social media "culture" and "tone."Xiaomi company: Xiaomi Inc. is a Chinese electronics and softwarecompany headquartered in Beijing. Xiaomi designs develop and sellssmartphones, mobile apps, laptops, and related consumer electronics.4

Chapter 2 Theories and Related Research2.1 Social Media MarketingSocial media marketing is the use of social media platforms andwebsites to promote a product or service. Although the terms e-marketingand digital marketing are still dominant in academia, social mediamarketing is becoming more popular for both practitioners andresearchers. Most social media platforms have built-in data analytics tools,which enable companies to track the progress, success, and engagementof ad campaigns. Companies address a range of stakeholders throughsocial media marketing, including current and potential customers,current and prospective employees, journalists, bloggers, and the generalpublic. On a strategic level, social media marketing includes themanagement of a marketing campaign, governance, setting the scope (e.g.,more active or passive use) and the establishment of a firm's desiredsocial media "culture" and "tone."To use social media effectively, firms should learn to allowcustomers and Internet users to post user-generated content (e.g., onlinecomments, product reviews, etc.), also known as "earned media," ratherthan use marketer-prepared advertising copy. While often associated withcompanies, as of 2016, a range of not-for-profit organizations andgovernment organizations are engaging in social media marketing.5

2.2 CRMCRM ( Customer Relationship Management ) was born in the1980s. Gartner Group, which first established the concept of CRM,regards customer relationship management as a kind of enterprisebusiness. He said that CRM could help companies improve managementand communication skills, thereby increasing customer profitability.The dual pressures of mature markets in developed countries leadingto stable demand and fierce competition brought about by economicglobalization have led companies to turn to higher customer service toenhance customer value (Ding, 2005). CRM is driven by informationtechnology and revolves around the needs of customers to refactor theconcept of information technology-driven business and businessprocesses. It aims at the company's revenue and customer satisfaction andcombines the company's Internet and computer software utilizationcapabilities with the "customer-centric" management strategy (Burghard,Galimi, 2000). IBM explains CRM from the perspective of enterprisemanagement. It regards CRM as the process of coordinating with similarinformation technology to better realize the communication andinteraction of customers in marketing activities. Thereby achievinginnovation in the management model and providing customers withpersonalized services. Based on the above points, customer relationshipmanagement includes three aspects: (1) business strategy guidingenterprise management; (2) integration of information technology andsoftware and hardware systems; and (3) innovation of enterprisemanagement model. Judging from the development trend of customerrelationship management theory, these views are currently showing apattern of mutual integration.6

2.2.1 “Customer-centric” is the core idea of CRMThe customer-centered concept is the core methodology forimplementing customer relationship management, but what is themeaning of this concept? So far, management scholars have not yetconducted in-depth research. From the current research status, manyscholars tend to use dynamics as a process of corporate strategytransforming.Zhou Bin, Yang Zhenshan took a step into the relationshipmanagement from the perspective of enterprise management strategy,explaining that advocating from the standpoint of enterprise managementstrategy to enter into customer relationship management, described asdefending from product-centric turning to a customer-centric businessphilosophy and operational model, which highlighting the dynamicprocess of corporate thinking transformation (Zhou, Yang, 2005). ChenPing puts forward a more lucid explanation of this transformation processas the active process and the business strategy of establishing a closerelationship with the client, which is lasting, more stable, trusting, andmutually beneficial and win-win (Chen, 2010).Customer-centric connotation can be interpreted from threeperspectives, which are: nature, behavior, and business strategy. Eachview will be divided into multiple levels, judging by the level of thecompany's business performance, and to what extent it is practiced, withcustomer-centric philosophy (Peng, 2005).7

2.2.2 Objectives of Customer Relationship ManagementThe objective of customer relationship management; most scholars,current research from the perspective of customers and believe that thegoal of implementing CRM is to make the customer's needs bettersatisfied. Of course, companies can also benefit from improved customerrelationships.CRM is an integration process for business people, businessprocesses and technology to better understand the company's customers.Companies that have successfully implemented CRM can also benefitfrom increased customer loyalty and long-term profitability (Injazz J.Chen, Karen Popovich, 2004).The essence of CRM is to cultivate loyal customers and improvetheir competitiveness by improving customer satisfaction. The purpose ofcustomer relationship management is to acquire and maintain morecustomers by enhancing the relationship between the company and thecustomer and to reduce the cost of the enterprise by fully managing thebusiness process while implementing personalized service. A simplesummary is to reduce customer costs by catching up with customerrelationships to maintain customers and optimize business processes(Chen, 2004). Slobodan Ivanovic, Kresimir Mackinac, and others studiedfrom the micro perspective of how to cultivate the competitive advantageof tourism. They believe that the primary goal of CRM is to attracttourists, to satisfy the needs of tourists as much as possible, and toincrease the number of tourists (Ivanovic, Mikinac, 2011).8

2.2.3 The role of customer relationship managementFor customer relationship management, the classic view is based onthe perspective of corporate competitive strategy. CRM is a magicweapon to improve the competitiveness for the enterprises, which isreflected in four aspects: improving service, improving efficiency,reducing costs and expanding sales (Zhang, Jin, 2003).Chen Ping (2010) researched the perspectives of corporate salesactivities and social benefits. It provides an implementation specificationfor the sales staff to clarify the operation process in each stage of thebusiness and also explains the evaluation criteria for the employees. Onthe other hand, through the implementation of CRM, companies canrecord the motivation of customers' choices according to the customer'spurchase process and provide the characteristics of loyal customers andthe reasons of losing a customer (Chen, 2010).Customer relationship management is the basis for doing thefollowing work in the enterprise. Through the mastery of customersinformation, the company can implement precise marketing, and at thesame time, the company can grasp the life cycle of customer relationshipand create lifetime value for customers (Teng, 2011).2.2.4 Implementation Process of Customer Relationship ManagementAt present, most of the research on the implementation of customerrelationship management focuses on the application level. In the orcountermeasures that can be followed, including centralized planning andintegration of business processes. In the process of implementing CRM,9

many scholars believe that it can be divided into stages using customerlife cycle theory.The goal of CRM is to achieve potential customers and maintainexisting customers through continuous communication with customers.So enterprises should not only pay attention to the mining of newcustomers but also pay attention to keep the relationship with the existingcustomer (Xu, 2014).The management process of implementing customer relationship canbe roughly divided into three stages according to the theory of customerrelationship, namely, the acquisition phase, the reinforcement phase andthe maintenance phase of the customer. This division is based on the fulllife cycle of the customer relationship (Wang, 2007).The full life cycle of the customer relationship referred as thecustomer life cycle, to maintain the customer's capabilities at each stageof the customer's life cycle is the key of a comprehensive customerrelationship management system. Dwyer, Schurr, and Oh first proposed afive-stage development of the trading relationship (Dwyer, Schurr, Oh,1987). Based on this, Dr. Chen Mingliang further simplified thedevelopment of customer relationship into four stages: investigationperiod, formation period, stability period and degradation (Chen, 2002).The life cycle process should start from the moment that thecustomer decides to buy the products from a company until he choosesnot to buy. The cycle is simplified into three phases, which are customeracquisition, customer retention and customer win backstages (Zickmund,McCordio, 2010).10

2.3 Relationship between community and customer relationshipmanagementAt present, most scholars believe that virtual communities can helpcompanies achieve one-to-one communication with customers, improvecustomer participation so that they can know the real needs of customers,enhance their product and service quality, and enhance the relationshipwith the customer.Scholar Xu Jianlin explored the reasons for companies using socialmedia for customer relationship management through an investigation ofthe automotive industry. First, as one of the mainstream applications ofthe Internet, social media that gathers a large number of consumers whichbrings a place for companies to look at consumer opinions. Companiescan highly value consumer opinions through social media. Secondly,social media higher user participation and interaction, and also makeinformation more transparent; enterprises can contact their customers byusing social media (Xu, 2014).Zang Chao discussed the necessity of the community in CRM fromthe perspective of big data. He believes that small customers in the era ofbig data can produce a long tail effect; it means a more significantcompetitive advantage when enterprises have more user data. Based onsocial media, customer relationship management can enable enterprises tochange social decision-making and analyze the real needs of consumers(Zang, 2013).Yu Ning studied the virtual community on the view of how toestablish a good relationship with customers. He believes that the virtualcommunity group will have an impact on customer relations in these two11

aspects: one is the word-of-mouth effect of productive constitutionalenterprises; the other is to improve the interaction level of communitymembers by constructing interactive space. This interaction includes notonly the communication of community members with the enterprise butalso the interaction between community members (Yu, 2007). Based onthe above research, Li Lei further pointed out that virtual communitiescan not only improve the efficiency of word-of-mouth effect and enhanceof customer interaction effects but also use the brand effect of virtualcommunities to build a trust relationship and accumulate a large numberof loyal customers (Li, 2009).Traditional CRM must adapt to social media and transform intoSocial CRM. As a complement to CRM, they proposed a new CRMframework called "CRM Architecture", in which social media will havean impact on the level of customer engagement, and the level of customerengagement has an interactive relationship with the three components oftraditional customer relationship management—customer relationshipacquisition, customer relationship maintenance, and customer relationshiptermination (Malthouse, Michael, 2013).In the case of Alibaba's shareholding in Sina Weibo and believedthat the purpose of social customer relationship management is topromote customer participation and achieve a win-win situation betweenenterprises and customers. Therefore, companies should improve theability of community operations and expand the influence of the brandcommunity (Zhao, Wang, 2015).12

Chapter 3 Methodology3.1 Research DesignThis chapter is an elaboration of research methodology and guidancecomprehensive explanations of research processes. It presents a discussion ofthe research methodology which focused on the social marketing questionnaireof Xiaomi company. In this research, there were two types of researchmethodologies which are questionnaire and case study.The case study focused on the social media marketing of Xiaomi companyand analyzed Xiaomi corporation’s current operating situation, marketing model,consumer satisfaction.The researcher reached to use a questionnaire as the research tool. The dataof this study were collected through a primary source. The respondents wereconducted from 100 Xiaomi product users on the Internet. The questions wereasked about the necessary information and investigation on the behavior ofmembers of the Xiaomi community. The questionnaire was conducted inChinese language and approximately 5 minutes to finished. One hundredXiaomi product users who visited the questionnaire link, from 10th November to11th November in 2018.3.2 Data Analysis3.2.1 Market status of Xiaomi CompanyBefore further analyzing the of Xiaomi's community marketing strategy, tohave a basic understanding of Xiaomi's current market position and brand13

competitiveness. This section selects three factors, which are: product sales,market share and customer loyalty, to examine Xiaomi's market situation.Under the influence of Lei Jun's Internet thinking "focus, extreme, word ofmouth, fast" and "participation," Xiaomi has achieved a bit of explosive growth:in 2012, it made a good performance of 7.19 million mobile phones sold. In2013, it sold 17.7 million mobile phones. In 2014, it recorded a sales record of61.12 million units, which was an increase of 227%. In 2015, its shipmentsreached 64.9 million units. In only three years, the growth rate is impressive,and Xiaomi has become one of the fastest companies to achieve sales of 2billion US dollars in history. The chart below shows the sales volume andmarket share of Xiaomi Mobile in China in 2013-2017:Table 3.1 The sales volume and market share of Xiaomi Mobile in ChinaSources: Jiguang.cnIn 2014, according to the latest report of HIS iSuppli, a Korean marketresearch company, in the third quarter of 2014, Xiaomi successfully defeated14

local brand Lenovo and Huawei and became the world's third largestsmartphone manufacturer.Table 3.2 China smartphone shipment market shareSources: 0.shtmlXiaomi focused on product mix and a more competitive channel policy; itwon a strong rebound in 2017. In 2016, the Q4 market share climbed to 14%,Q4 increased by 31%, Xiaomi becoming the fastest growing mobile phonebrand in the quarter. This makes Xiaomi's market share surpass that of Apple inthe whole year, reaching 12%.According to the data for the fourth quarter of 2017, the market share ofXiaomi's smartphone accounted for 17% of the major mobile phone brands,ranking third. However, in the trend of the retention rate of mainstream mobilephone brands, Xiaomi's smartphone market share in the fourth quarter of 201615

was 11.1%, ranking fifth, it was a rapid decline in only one year. The data in thetable below shows the changes in this market share:Table 3.3 Market share of Xiaomi Mobile in ChinaSources: Jiguang.cnThe market share of Xiaomi smartphone has also shown differentperformance in different cities. In the first-tier cities, Xiaomi is slightly superior,ranking the top three in the rankings; However, in the second and third-tiercities where Oppo and Vivo are infiltrated, the disadvantages are very obvious.It is only slightly ahead of Huawei among the significant brand market share.16

Figure 3.1 Mainstream mobile phone brand city level distribution of 2017Q4Sources: Jiguang .cnFrom the market share in the past year, it can be seen that Xiaomi is in theposition of first-tier manufacturers in the domestic mobile phone market.However, in 2017, the market pattern has undergone significant changes, whichhas made Xiaomi face two significant challenges: First, with the suddenemergence of Huawei,OPPO and vivo, Xiaomi’s market share has turnedsharply. The market share name is close to the end of the first-order team. Even17

in the first-tier cities with advantages, it has not been able to open the gap withthe lower ranking competitors.Customer loyalty is the core indicator for measuring the competitiveness ofa brand. The chart below reflects the commitment of major brands in China'smobile phone market in 2016-2017:Figure 3.2 The loyalty of major brands in China's mobile phone marketSources: Jiguang .cnFrom 2016 Q4 to 2017 Q4, the customer loyalty of Xiaomi smartphone ismaintained around 25%, ranking first compared to its competitors Huawei,OPPO, and vivo, and even higher than Apple, which shows that Xiaomismartphone is the most attractive to users in China. However, the fact that the18

customer loyalty of Apple and Huawei are proliferating also demonstrates theefforts of Xiaomi's main competitors in fostering customer loyalty.3.2.2 Customer segmentation of Xiaomi companyIdentifying potential customers is a prerequisite for an enterprise toimplement customer relationship management. A fundamental principle inmarketing is that customers are very different. Some customers needorganizations to spend a lot of time and money to attract them, while othersdon't need to provide too many services. Therefore, for Xiaomi, the first task isto identify customers with high intrinsic value and long-term cooperationmeaning among different customers and then determine the implementationtargets of their community marketing strategy.Figure 3.3 Gentle of Xiaomi mobile phone userData source: Questionnaire19

As can be seen from the above figure, 62% of the respondents were male,38% were female. The number of Xiaomi mobile phone male users is muchmore than female users. Which also shows the target market of Xiaomi mobilephone are male.Figure 3.4 Age of Xiaomi mobile phone userData source: QuestionnaireThe main Xiaomi smartphone users are at the age 20-29 years old, ofwhich, the proportion of men in the forum is as high as 62%. The period ofusers is characterized by youthfulness. They pursue a quality life and buy theirfavorite products; they are keen to show their individuality and not drifting, butthey also are positive and hope to share their attitudes towards life.20

Figure 3.5 Xiaomi mobile phone user qualificationsData source: QuestionnaireAmong the user groups of Xiaomi Forum, 83% have a bachelor's degree, 9%have a junior college degree, and few other qualifications. The primary users arecollege students and white-collar workers who have just entered the workplace.It can be seen that most of the Xiaomi mobile phone users have low income andhigh pressure on life, has greater sensitivity on the prices. Due to incomeconstraints, they are more eager to gain recognition from others.21

Figure 3.6 Personal income of Xiaomi usersData source: QuestionnaireBased on the integration of the above information and supplementarymaterials, the author gets the necessary image data of Xiaomi users as below:1, Male to female ratio 6:4,nearly 62% of Xiaomi users are males.2. The majority of young people aged 20-39, with the highest proportionof users in the 25-29 years old;3. 83% of the users are college students or higher education;4. Personal income is mostly in the 2600-5600 yuan/month.3.2.3 Customer satisfaction of Xiaomi CompanyCustomer-centric is the core philosophy of customer relationshipmanagement and a fundamental principle that every company must implement,22

to get benefit from excellent customer relationships. When Xiaomi Companywas founded, its slogan "Birth for a fever," reflecting the pursuit of the ultimatehigh requirements, as Li Wanqiang said in his book” The sense of participation”:users are willing to propagandize for good products.Doing everything to understand customers, to understand their needs, andwork hard to help them is significant customer interaction. The establishment ofthe MIUI Forum has become the main feedback and communication channel forcustomers. MIUI team members are required to run in the corresponding sectionat least 15 minutes a day, to accept feedback and suggestions from users, andanswer questions from customers. Xiaomi is also very good at discovering userneeds in communicate with users and try to improve their products and servicesto meet the needs of users. For the mobile phone system, there is a similarsatisfaction survey in the MIUI forum:Table 3.4 MIUI System satisfaction surveyMIUI .1089.44%Sources: MIUI Forum miuivote/index&op statistic23

Figure 3.7 MIUI System satisfaction questionnaireData source: QuestionnaireAs can be seen from the above tables, MIUI development versionsatisfaction is around 88%. 32% of the questionnaire respondents like the fullfeatured of the MIUI system, and they also think that the MIUI system easy touse and has a stable function. However, it should be pointed out that the abovesurvey results are based on the survey of th

2.1 Social Media Marketing Social media marketing is the use of social media platforms and websites to promote a product or service. Although the terms e-marketing and digital marketing are still dominant in academia, social media marketing is becoming more popular for both practitioners and researchers.

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