Leveraging Social Media for Customer Relationship Management (CRM)
Social media has profoundly impacted different aspects of business, including customer relationship management (CRM). In simple terms, CRM is how businesses maintain and manage their interaction with their customers effectively (Guha et al., 2018). Social media platforms like Facebook, Twitter, LinkedIn, and Instagram have provided businesses with new opportunities to interact and engage with customers.
Transforming Customer Engagement
One of the most significant advantages of using social media for CRM is that it is a cost-effective way of interacting with customers. Businesses can create social media profiles and avoid incurring charges except for sponsored posts (Itani et al., 2020). Customers can interact with the company on social media by liking, commenting, or sending direct messages.
Analyzing Customer Data
Businesses can also use social media to gather customer insights. Social media platforms allow companies to collect customer data, such as demographics, location, and preferences. The analytics available on social media platforms can give businesses insights into their audience, what content attracts more engagement, and what people say about the business (Foltean et al., 2019). An excellent example of companies using social media for CRM can be seen on Twitter. Many companies use Twitter to respond to complaints, follow up on customer requests and opinions, and even offer promotions.
Providing Customer Support
Moreover, social media platforms can be used to provide customer support. Customers needing help with the product or service provided can contact the business’s social media platform. The company can assign a social media customer support representative to handle these complaints and answer frequently asked questions.
Personal Considerations for Engaging with Companies on Social Media
I understand the significance of social media in promoting and managing business operations. The rapid evolution of social media has led to its growing use in business engagements, communication, and marketing (Guha et al., 2018). With this in mind, I would consider interacting with a company I do business with through social media for various reasons.
Advantages
Firstly, social media provides a convenient and more efficient way to interact with the company. It presents an opportunity to connect with the company when traditional forms of communication may need to be more practical. With social media, I can reach out to customer service representatives and get instant feedback on issues regarding the product or service. Therefore, this interactive and prompt engagement increases my satisfaction with the company and its products or services.
Secondly, social media provides an avenue for companies to portray their brand values and company culture. Through their social media presence, companies may take on a more human approach, which creates a more personal connection with their customers. By constantly sharing updates about the company’s operations, vision, and values, they show transparency that creates a sense of trust between the customers and the company (Itani et al., 2020). This approach resonates with me, as I would like to feel connected with the companies we exploit, and the shared sense of values drives loyalty.
Disadvantages
On the other hand, some factors negatively impact my perception of companies that use social media ineffectively or for the wrong reasons. Social media provides a platform for companies to engage their audience formally, and when done incorrectly, it may be off-putting. For instance, an influx of promotional content, spamming, or a lack of response to customer requests may leave a negative impression on the customer (Foltean et al., 2019). Lastly, I prefer a direct message or communication with the customer service representative rather than having personal information exposed by open responses for all to see.
References
Foltean, F. S., Trif, S. M., & Tuleu,D. L. (2019). Customer relationship management capabilities and social media technology use: Consequences on firm performance. Journal of Business Research, 104, 563-575. Web.
Guha, S., Harrigan, P., & Soutar, G. (2018). Linking social media to customer relationship management (CRM): a qualitative study on SMEs. Journal of Small Business & Entrepreneurship, 30(3), 193-214. Web.
Itani, O. S., Krush, M. T., Agnihotri, R., & Trainor, K. J. (2020). Social media and customer relationship management technologies: Influencing buyer-seller information exchanges. Industrial Marketing Management, 90, 264-275. Web.