Faculty of Economics and Business Administration Publications Database

Managing Customer Relationships in the Social Media Era: Introducing hte Social CRM House

Authors:
Malthouse, Edward C.
Haenlein, Michael
Wege, Egbert
Zhang, Michael
Source:
Volume: 27
Number: 4
Pages: 270 - 280
Month: November
ISSN-Print: 1094-9968
Link External Source: Online Version
Year: 2013
Keywords: Customer relationship management; Social media; Engagement; Information technology; Customer insight; Employees; Key performance indicator
Abstract:

CRM has traditionally referred to a company managing relationships with customers. The rise of social media, which has connected and empowered customers, challenges this fundamental raison d'etre. This paper examines how CRM needs to adapt to the rise of social media. The convergence of social media and CRM creates pitfalls and opportunities, which are explored. We organize this discussion around the new “social CRM house,” and discuss how social media engagement affects the house's core areas (i.e., acquisition, retention, and termination) and supporting business areas (i.e., people, IT, performance evaluation, metrics and overall marketing strategy). Pitfalls discussed include the organization's lack of control over message diffusion, big and unstructured data sets, privacy, data security, the shortage of qualified manpower, measuring the ROI of social media marketing initiatives, strategies for managing employees, integrating customer touch points, and content marketing.

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