Leeco Case Study

The Application of E-CRM

Dan REN

Company Overview

LeEco is a Chinese multinational conglomerate corporation founded in 2004. The group maintains ventures in video website, consumer electronics, automobiles, film studio, e-commerce, VR, real estate and other business. Even though LeEco is very young, it has expanded to countries outside of China, such as the United States and India. Earning the first money though buying the huge amount of video copyrights, LeEco successfully invests many potential projects and cooperated with famous companies to build an ecosystem, from mobile phone, TV, film, to electronic car (cooperated with Aston Matin). From the financial report, Le.com (subsidiary company of LeEco) got income of 21 billion Yuan (2.8 b euro) and net profit 765 million Yuan (103.6 million euro) . However, there are lots of negative news regarding shortage of funds, high top management turnover rate, staff layoff since the last November and the price of their stock has bottomed out in this year. Of course, these chain reactions are related to their top management’s strategic decision according to the Chinese mainstream media, who think that LeEco develops so fast that their capital cannot support itself to build a real ecosystem.

However, I think their current situation is also related to the following problems:

1. Low efficiency & high cost on employees in the internal organization
2. Most of their marketing campaigns use the cost-effective as selling point to attack the competitors thereby losing the profits
3. High user churn rate due to bad customer service
4. They didn’t make effective use of social media

Facing the current challenges, I think the objectives of LeEco are as follows:

1. Build an effective internal tool to ensure the unimpeded communication to relevant issue and cross department cooperation
2. Strengthen the administration management and monitor the various resources to avoid wasting
3. Retain the customers through improving their user experiences
4. Promote their brand image through multichannel marketing campaigns

Given the current situation, what I suggest e-CRM platform is Salesforce.

How Salesforces applies into LeEco

Features:

• LiveMessage

Mobile messaging is the preferred method of contact for today’s ultra-connected, mobile customers. And now it’s the easy, cost-effective way for you to deliver a faster, smarter, more personalized conversation too. Currently, the employees of LeEco use ‘Wechat’ or ‘QQ’ as communication tool so that they didn’t know the organization clearly, and even though they have a formal communication tool, as they can’t use it on mobile phone, very few people use it. With Salesforce LiveMessage, it will be easier than ever for employees to have a personalized conversation using messaging apps they prefer, such as SMS. Because they’re no longer tied to a web browser, and can get in touch with their colleagues instantly, get the answers they need — and get on their way. At same time, this tool can assure their company information security.