Social Media's Role in Enhancing Customer-Organization Relations

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The Impact of Social Media on the Change of interrelationship between the Organisations and the Customer
Channa Wallheimer - 10410910
Abstract. The introduction of social media has a large influence on the change of interrelationship between the organisation and the customer. Because of this, a new technology around social media namely social customer relationship management (SCRM) developed. Organisations use SCRM technologies to provide a better customer service and maintain a better customer relationship. Through the new technique of SCRM organisations are able to increase their customer performance. The use of social media by organisations also has a positive effect on the customer satisfaction. Another consequence of the introduction of …show more content…

Another change in the relationship has to do with the introduction of social media marketing. Kim (2012) writes in her article “Do social media marketing activities enhance customer equity” that social media indeed enhance customer equity. This is not the only change in marketing. Organisations used to perform a one-to-many marketing communication but with the introduction of social media this changed to a more individual one-to-one relationship (Gensler, …show more content…

A whole new customer relationship technique called SCRM had been developed. SCRM makes it possible to provide a better customer service and also maintain a better customer relationship. Also, there is evidence that the use of social media has a positive effect on the customer satisfaction. Social media generates a lot of big data which brings new opportunities to organisations. By performing data analytics organisations are able to predict the customer buying behaviour and improve the customer experience this results in a more personal relationship between the organisations and the customer.

The customer on the other hand also made some really big changes. Firstly, the customers are better connected to the organisation and are more knowledgeable about products which makes them more powerful in the buyer-seller relationship. This bring us to the second point which is that relationship between the organisation and the customer shifted from seller to buyer. This has the consequence that the customer has more influence and power towards the

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