CRM in Social Media
Within a short period of time, social media has risen to a multi-faceted, two-way marketing and service channel. Its handling bears novel opportunities, but also large risks. Consumers and firms act and interact on social media platforms in various ways: from exchanging thoughts and recommendations about products and services, seeking help or stating complaints, up to taking part in challenges and co-creation activities. The spectrum of what social media means for CRM extends well beyond simple advertising. Yet, these advancements are still rather young, often prompting firms to act on instinct rather than a solid foundation of truths about social media management. We shed light on different topics in the realm of CRM on social media, each of which presents unique challenges for management: word-of-mouth (WOM) and its impact on brands, return on social media campaigns, brand sales in the entertainment industry, and social couponing. Each paragraph discusses the factors that determine success and failure in social media management, and gives recommendations for marketers.
- Beese, J. (2011). Social networks influence 74% of consumers’ buying decisions. http://sproutsocial.com/insights/social-networks-influence-buying-decisions. November 11. Sprout Social. Accessed April 18, 2017.
- Berger, J., & Iyengar, R. (2013). Communication channels and word of mouth: How the medium shapes the message. Journal of Consumer Research, 40(3), 567–579.Google Scholar
- Harpham, B. (2016). How social media adds value to CRM. March 23. CIO. http://www.cio.com/article/3047414/customer-relationship-management/how-social-media-adds-value-to-crm.html. Accessed May 3, 2017.
- Kemp, S. (2017). Digital in 2017: Global overview. January 25. We Are Social. http://wearesocial.com/sg/blog/2017/01/digital-in-2017-global-overview. Accessed on March 28, 2017.
- KLM. (2017). Blog: Meanwhile at KLM. https://blog.klm.com/. Accessed May 2, 2017.
- Kumar, V., & Mirchandani, R. (2012). Increasing the ROI of social media marketing. MIT Sloan Management Review, 54(1), 55–61.Google Scholar
- Kumar, V., & Rajan, B. (2012b). The perils of social coupon campaigns. MIT Sloan Management Review, 53(4), 13–14.Google Scholar
- Maddox, K. (2013). Study: Social media influences b-to-b tech purchases. December 9. AdvertisingAge. http://adage.com/article/btob/study-social-media-influences-b-b-tech-purchases/290815/. Accessed April 18, 2017.
- Ovide, S. (2011). Groupon merchant: There’s a flaw in their business. January 7. The Wall Street Journal Blogs. http://blogs.wsj.com/deals/2011/01/07/a-groupon-customer-speaks-why-groupon-didnt-work-for-me/. Accessed April 18, 2017.
- Socialbakers. (2016). The newest data on social customer care by socialbakers. Q3/2016. https://www.socialbakers.com/free-social-tools/socially-devoted/q3-2016/. Accessed May 2, 2017.
- Thomas, J., Reinartz, W., & Kumar, V. (2004). Getting the Most out of All your Customers. Harvard Business Review, 82(July–August), 116–123.Google Scholar
- Vision Critical (2013). New data on how social media drives purchasing. https://www.visioncritical.com/new-data-how-social-media-drives-purchasing/. Accessed June 26, 2013.