Xiaomi customer loyalty is picking up

Updated:2017/10/25 14:27

As prices of Android mobile phones are generally lower than iPhones, Android users tend to buy new handsets more frequently than iPhone users. After all, most people are unwilling to pay such a price for a new iPhone. However, according to earlier survey data of a US technology website, frequencies that Android users change their devices is related to brands preferences. Based on the market-share data of different smart phones, Huawei mobile phone users have the highest brand loyalty, compared with Apple and Xiaomi.

Data from QuestMobile shows that Huawei users still rank first in brand loyalty by September this year, 46.9% users still choose Huawei mobile phones when changing their devices.

There are three reasons that are relevant to trust and high loyalty to this brand: first, the leading role that Huawei plays in the current Chinese market of domestic cell phones thanks to its technical innovations and fan base; second, most components in Huawei mobile phones are self-developed such as Kirin chips, and this reflects sort of patriotism;third, Huawei has a big brand influence Chinese customers prefer products made by powerful companies,plus Huawei mobile phones are of good quality.

In fact, the retention rate of Xiaomi mobile-phone users is much higher than those in previous years, showing a significant upward trend. This is undoubtedly an exciting news;founded in 2011, Xiaomi is known as cost-effective, this strategy actually helped Xiaomi own the largest shipments in domestic market in the early stage, however, shortage of devices could be a “burden” and perceived as cheap products in many people’s visions.

In the second quarter of 2017, shipments of Xiaomi mobile phones shows the V-shaped recovery; at the same time,customer attrition rate due to shortage of devices also got relief, even reaching up to 31.4% of current users.

Different from Huawei, Xiaomi achieves these results in the following aspects. To be specfic, the user retention rate is related to three parts: first, Xiaomi device supply chain improves significantly after its CEO Jun Lei took over, mobile phone shortage was overcome ; second, Xiaomi launched several popular models, such as Xiaomi 6, Xiaomi MIX2, Xiaomi Note3, Xiaomi 5X and Redmi Note4X, making a significant proportion in its overall shipments; third, its quality and innovation ability improved and impressed the customers.

However, it is worth noticing that up to 20.3% of Xiaomi users switched to Huawei as shown in the data, therefore Xiaomi still cannot relax its vigilance.


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