Metamorphosis of CRM: Incorporation of Social Media to Customer Relationship Management in the Hospitality Industry

Introduction

Increasing usage of social media has given new ways to manage CRM. A traditional CRM framework comprises of information about the customers that can be utilized by organizations for maintaining and retaining company and customer relationship. (Payne & Frow, 2005).

CRM as a procedure that involves systematized handling of relationship as they proceed from the inception to conclusion with implementation throughout the numerous customers directed contact channels (Reinartz, Krafft & Hoyer, 2004). Internet has provided such powers to the customers that they are no longer in a passive relationship with companies. Abundant information is available to the customers on just a click, information about competitor’s product and services is available as well, they have the power to express their opinion on any social networking site. Strauss, Frost & Marketing (2000) Indicate that social media are a gateway for creating bonds with customers by the way of creating value and in turn increasing customer retaining capacity. Social Media are Internet based applications that allow creating and exchanging user generated content. (Kaplan & Haenlein, 2010).The challenge faced by the companies is the, management of the messages received by the customers about their products and services (Schultz, Barnes, Schultz & Azzaro, 2015) suggested how integrating social channels and customer relationship management together can be used to improve business performance. Lack of face-to-face interaction between organizations and customers can be bridged through communication on social platforms (Dewnarain, Ramkissoon & Mavondo, 2019). In a customer’s decision journey, it is almost everywhere that the customers want to interact with each other on social media before taking a purchase decision so as to know the experience they had with that organization after availing the services (Ramkissoon, Mavondo & Uysal, 2018). In this technological era where customers are becoming more and more social, the key drivers of change in hotel industry will be social media integrated with CRM, when social media is integrated with traditional CRM it is termed as Social CRM. A term used by Greenberg (2009). Research by Chan, Fong, Law & Fong (2018) claims that link between social media and CRM is a lesser searched topic.

Word of mouth has a very important role; negative comments can go viral in a very short span of time and can bring huge losses for the companies similarly positive comments can do wonders in growing companies’ image. Here comes the crucial role of social media listening wherein the emphasis is on understanding the customer’s perception, listening to them and making appropriate changes as per the feedback given by customers. Organizations capture data from different sources like LinkedIn, Facebook, Instagram, blogs and try to integrate the collected information into their sales process. Organizations avail the advantage of internet and use Social Media for CRM. However, another point of concern is the use of social CRM in a darker and negative way by the firms, it is important that Social CRM should be used by the organisations in an ethical way. Some firms may take advantage of customers information that is available to them very easily, an example can be if hospitals charge “blanket” insurance cover for medical screening even if it is not required (Varzhabedian, 2007). Customers information can also be provided or sold to other firms without the knowledge of customers (Turow et al., 2005).At the same time customers can also be a contributor in dark side practices at times by unnecessary excessive complaining of products and services to take advantage of the service provider (Lovelock, 1994).It is essential to use Social CRM process in a holistic way and move away from dark side of unethical practices and take a step ahead by being a part of enlightened Social CRM process.