An empirical study of social network effects on customer relationship management

Abstract

Recent advances in information technology and web-based services have enhanced the tools available for business. In particular, social networks, which are widely used by individuals, are expected to have an effect on customer relationship management (CRM) systems. Consequently, a novel approach to CRM is emerging, integrating social networking into more traditional CRM systems. In fact, social networks might be fully exploited as a value-adding tool for improving customer relationship management. The aim of this paper is therefore to advance knowledge of the effects of social networks and social network-mediated communication on CRM. The discussion is supported with anecdotal data from qualitative interviews with 26 experienced managers from different organisations who expressed their opinion on the introduction of this new tool. The results have been investigated through a content analysis in order to make the managers’ point of view emerge.