Customer Relationship Management 2.0: How Can a SCRM Strategy be Successfully Designed and How Does Participation in Social Media Influence the Customer Company Relationship

Customer Relationship Management 2.0: How Can a SCRM Strategy be Successfully Designed and How Does Participation in Social Media Influence the Customer Company Relationship

Constantly emerging technological developments and the fact that a vast number of companies rushing toward the social market made it inevitable for organizations to redesign their CRM strategies. Social Customer Relationship Management (SCRM) is the result of these environmental changes which enables the integration of ordinary CRM activities with Web 2.0 and social media applications. It can be interpreted as philosophy and business strategy, supported by technologies, processes and social characteristics to provide mutual beneficial value. Although the literary findings of this issue are advanced, there is still a lack of knowledge in specific areas like the practical implementation, monitoring of SCRM, the impact on the customer-company relationship or the future development. This paper investigates not just the current state of the literature regarding SCRM, but also empirically focusses on the above-mentioned areas which have been identified to be insufficient in literature. A qualitative study was conducted with B2C companies from different lines of business to show major differences. The findings highlight that SCRM is often not supported by a formal strategy but especially used to stay competitive, to enhance the relationship to the customer and to achieve customer loyalty. Accordingly, KPIs, social software, test markets, consultants, knowledge about the scarcity of resources or requirements of customers may support strategic decisions.