Social Customer Relationship Management

Social Customer Relationship Management

Mohammad Nabil Almunawar (School of Business and Economics, University of Brunei Darussalam, Brunei Darussalam) and Muhammad Anshari (Continuing Education Centre, University of Brunei Darussalam, Brunei Darussalam)
DOI: 10.4018/978-1-4666-5888-2.ch519
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Abstract

Customer Relationship Management (CRM) can be used by an organization as a tool and strategy in meeting the expectations of their customers. The term Social CRM is an approach that allows intensive interactions between customers, customers and organizations, and customers' interaction with the systems by utilizing Web 2.0. Social CRM offers new capabilities of social networks that provide powerful new approaches to surpass the traditional CRM. The fundamental changes offered by Social CRM are in terms of empowerment, connection, and value generated. An example of Social CRM in healthcare is extending healthcare services through social networks where many kinds of interaction can be supported. The main goal of this chapter is to introduce a promising future research direction, which may shape the future of integrative customer relationship. In this chapter, we examine customers' expectation concerning the process of empowerment, social networks, and participation to make customers more proficient in dealing with their own issues. This chapter also discusses and demonstrates how Social CRM will help customers have greater control in controlling the process of interaction (empowerment) with organizations and among themselves.
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Background

The roles of CRM in managing customers and improving customer services have been well recorded in business literatures. Many corporations presently use CRM as a tool to serve customers better. Corporations take advantage of the recent development in Information and Communication Technology (ICT), especially the Internet related technology, embracing e-business. CRM is an integral part of e-business architecture, meaning that e-business without CRM is incomplete.

Unfortunately, many see CRM as merely a technology for improving customer service, which does not necessarily lead to customer satisfaction when implemented. CRM initiatives must be seen as a strategy for significant improvement in services by solidifying satisfaction, loyalty, and advocacy through ICT. CRM must address the dynamic nature of customers’ needs because behaviors and expectations of customers continuously change overtime. Hence, adjustments strategies embedded in CRM are required.

Key Terms in this Chapter

Customer Service: The provision of service to customers before, during, and after a purchase or service.

Social Network: The use of Internet-based social media programs to make connections with friends, family, classmates, customers and clients.

Service quality: Expectations with performance.

CRM: Greenberg (2003) defined CRM as a philosophy and a business strategy supported by a system and technology designed to improve human interactions in a business environment. It is an operational, transactional approach to customer management focusing around the customer facing departments, sales, marketing and customer service.

Social CRM: Greenberg (2009) defined Social CRM as a philosophy and a business strategy, supported by a technology platform, business rules, processes, and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It's the company's response to the customer's ownership of the conversation.

Web 2.0: The second stage development of the World Wide Web, characterized esp. by the change from static web pages to dynamic or user-generated content and the growth of social networking.

Customer Empowerment: A principle to give customers (patients) more power in making decisions related to their health and to give them required authority to access or produce information related to their health.

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