Social Media in Managing Customer Relationships - Research Paper Example

The role of social media in managing relationships Affiliation Purpose The purpose of this paperis to find the role or social media in management of customer. In particular, the paper is geared towards establishing whether social media has been effective in customer management. Background Whereas the efficient and the efficacy in the use of traditional media have received much attention from researchers, the use of social media such as face book, and twitter in managing customer relations, has not been explicitly covered. Research has shown that traditional media such as television, radio and print have positive outcomes with regard to passing information to citizens. Though websites and social media have been also effective, there have apparently very few studies which have compared its efficacy in relation to traditional media. As more people continue to be involved in social media and as it continues to develop, many companies are increasingly turning to social media as an instrument for connecting and relating with their existing and potential clients, relaying information and for public relation activities. The topic of social media use in marketing and customer relations is an emerging and interesting topic but which has received little attention from researchers. There are some earlier studies on the same, which are focused on the application of social media to the targeted audiences; however, there is a need for controlled studies to establish the role of social media customer relations. The major obstacles in obtaining relevant and up-to-date evidence on its use are the difficult in assessing the applications of social media as well as problems of publishing these kinds of research findings. In spite of the fact that evidence and information is insufficient, it is evident that many companies are increasingly employing social media in various communication aspects. This may be attributed to the easy adoptability of social media, and the increased number of people engaged in social media. However, social media requires appropriate and sufficient personnel to operate. In addition, it also requires that effective strategies to be designed on its applications in specific contexts. Owing to the increasing development of social media, the best strategies and practices as well as policies are required in adapting social media by companies, and marketers. Industry stats According to Mauss, (1990, 6) effective market productivity depends on the extend and the range of cooperation between entities and their stakeholders, since they ultimately depend on one another. It is obvious that market expansion, and improvement depends on the efficiency of the existing communication, and transportation networks. However, without the information from customers regarding quality and prices, improvements in communication and transportation mechanisms will not be enough. Therefore, communication and cooperation is required at its fullest to realize a functional market. The service dominant logic on contemporary marketing developed by Lusch and Vargo explains that the hallmarks of the service perception and the emphasis on the relationship and the customer are integration, interactivity, coproduction, and customization. The service-centered view develops not just for the concern of the customer, but also in liaison with the customer. Essentially, there can be no separation between the producer, and the consumer (Slater 1990, 74). The integrative and interactive view of exchange is compatible with the idea that all operations of an organization can be integrated in the market responsiveness, and that profits come from client satisfaction (Kohli and Jaworski 1990). This is why many firms invest a lot of money in ascertaining customer needs and preferences and incorporating the same in their services. In doing so, they have to employ various strategies and means of communication to reach as many people as possible. There are various means, which companies use in managing customer relations. Among these is creating customer loyalty, rewarding customers, use of the internet and emails, using sales personnel and social media relations. Social networking is the novel online rage which has also come to be embraced by marketers and firms. LinkedIn, Twitter, Face book, MySpace and soon have offered creative means of communication among individuals and organizations. In addition, it has facilitated knowledge sharing among not only individuals but also corporations and government entities. Most social networking instruments are based on websites and have enhanced the interaction of users with similar interests. There is no doubt that social media has enhanced communication and customer relations for many organizations. There have been some people who have argued that social media have had a negative impact on customer relations and the general public relations. Research has however, shown that social media has enhanced communication and PR practices in many sectors. This has prompted many entities, both private and public to employ social media in communication and public related activities (Seipe, 2013). Key Words: Social Media, Customer Relations, Organizations, Social Networking Abstract Whereas the efficient and the efficacy in the use of traditional media have received much attention from researchers, the use of social media such as face book, and twitter to pass government information and public relations has not been explicitly covered. Research has shown that traditional media such as television, radio and print have positive outcomes with regard to passing information to citizens. The aim of this paper is to analyze the role of social media in customer relations. The author employed desktop research and other secondary information in finding the resources related to the topic. The study has found out that many companies and marketers are increasingly turning to social media as an instrument for connecting with their clients, relaying information and for public relation activities. The topic of social media in communication, customer relations and PR is an emerging and interesting topic, but which has received little attention from researchers. There are some earlier studies on the same, which are focused on the application of social media to the targeted audiences; however, there is a need for controlled studies to establish the role of social media in customer, and public relations. The major obstacles in obtaining relevant and up-to-date evidence on its use are the difficult in assessing the applications of social media as well as problems associated with publishing these research findings. Discussion Relationship Marketing The service dominant logic on contemporary marketing developed by Lusch and Vargo explains that the hallmarks of the service perception and the emphasis on the relationship and the customer are integration, interactivity, coproduction, and customization. The service-centered view develops not just for the concern of the customer, but also in liaison with the customer. Essentially, there can be no separation between the producer, and the consumer. The integrative and interactive view of exchange is compatible with the idea that all operations of an organization can be integrated in the market responsiveness, and that profits come from client satisfaction (Kohli and Jaworski 1990). This is why many firms invest a lot of money in ascertaining customer needs and preferences and incorporating the same in their services. In doing so, they have to employ various strategies and means of communication to reach as many people as possible. There are various means, which companies use in managing customer relations. Among these is creating customer loyalty, rewarding customers, use of the internet and emails, using sales personnel and social media relations. Apparently, marketing portrays an organization’s state of the mind (Barabba, 1996, 47). Apart from creating awareness on the products, marketing is a crucial element in building customer relations. Without an efficient marketing mechanism, there is a low probability for a firm to gain customers, but may lose them. This will subsequently lead to loss of revenue and no development. Marketing and in particular, customer relations, can therefore be regarded as the vehicle for company growth. From the perspective of a service-centered logic of marketing, and with a heavy focus of consistent processes, the consumer is mostly engaged in the production of value. This logic has redefined the relationship between the firm, and the consumer. In the traditional dominant perspective, the consumer and the products are separated. However, in the logic of service dominant, the consumer is regarded as the co-producer of the services provided by regularly providing the feedback concerning quality and preferences. It therefore, becomes a consistent process on where the customer is involved in value development of the service verses the separation of the consumption, and production. The key to creating service value is to co-produce services that mobilize consumers (Normann and Ramirez, 1993, p. 69). Further, the market, and customer relation strategies adopted by firms need to be geared towards creating trust, commitment, bond, process, loyalty and communication Various studies have pointed out that the aspect of promotion, particular through an advertisement that is well targeted may assist in making the consumer to be more loyal, and less price sensitive. Additionally, promotion may also assist in increasing the knowledge, perception, and behavior of potential customers regarding the brand (Hamidizadeh et al, 2009, 56). Methodology The present study was performed by conducting systematic review of secondary studies on the a similar topic. Moreover, the researcher conduced an environmental scan in key government entities and players to find out how social media was applied in such entities. In this study, qualitative and desk approach was used in finding common literature in a partial sampling of the related literature that dealt with the research topic and objectives. Most of the literature used in this study was accessed from www.altavista.com, www.infoseek.go.com, www.google.com and other peer-reviewed journals and other databases such as Medline, Academic Search Premier, JSTOR and Business Source Premier. The technique employed in finding these journals included using key search words associated with the topic in the identified websites and databases. Once the articles were accessed, they were stratified with regard to the questions, which they addressed. Social Media Social media is media platform on social networking by use of such platforms as LinkedIn, Twitter, Face book, MySpace, and others. These platforms have facilitated communication among individuals and organizations. In addition, it has facilitated knowledge sharing among not only individuals but also corporations and government entities. Most social networking instruments are based on websites and have enhanced the interaction of users with similar interests. In spite of the fact that evidence and information regarding the role of social media is insufficient, it is evident that many entities, both business oriented, NGO and public ones are employing social media in various communication aspects. This may be attributed to the easy adoptability of social media and the increased number of people engaged in social media. However, social media requires appropriate and sufficient personnel to operate. In addition, it also requires that effective strategies to be designed in its applications in specific contexts. Owing to the increasing development of social media, the best strategies and practices as well as policies are required in adapting social media on marketing and customer relations. Today’s global environment is definitely a competitive one, it is therefore necessary to understand that the citizen is in control. If organizational and political leaders really want to win in this situation, then they would need to give the customers what they really want. Doing this credibly and regularly will be a blow to competitors, opposition forces or their enemies. This is unless such competition decides to do those aspects in a more generous way (Owyang, 2008). Failure to identify the significance of social media for marketing will be detrimental to organization growth. In essence, social media and the internet is very helpful when it comes to participative communication. Even PR practitioners and markers need to understand the mood and attitudes of the audience when trying to relay information to them. Participative communication was not actually possible before the emergency of social media instruments. The social media instruments have therefore facilitated a two-way interaction between groups or individuals across social and spatial boundaries that were not in earlier times possible. Communication in traditional media usually has boundaries, which have become irrelevant in social media. As Garcia (1998) notes the development of the internet has really altered the face of public relations and customer relations in today’s perspectives (34). While the radio took more than three decades in generating an audience of 50 million and the television more than two decades in gaining the same number of audience, the internet took less than three years. In essence, social media has changed the face of public relations and customer relations professions. Before the emergency of the internet, marketers heavily relied upon editors of print media, producers, news tips, and press releases to relay their information to the customers. The development of the website has however transformed this aspect and governments no longer rely on these to relay their messages. The peculiarity of the internet has placed it above other media platforms in terms of the audience over the past years. Social Commerce Social commerce is the emergency and development of social media in marketing aspects. With the high rate of customers buying products and services online, it is not surprising that many marketers are now following their customs in supporting the purchase process. Despite the fact that by nature shopping has been a social activity, a combination of various social media platforms and shoppers who owns smart phones have facilitated and streamlined the process of social commerce. In essence, social commerce involves the use of social networks in the perspective of e-commerce business transactions. According to Garcia (1998), social commerce involves the use of online collaborative instruments such as user ratings, shared pick lists and the user generated content that shares online product information and advice (234). Social commerce is essentially the activity of customers who have the same interests, needs and passions in collectively engaging in interactions and communications in regard to the products and services which are aimed at satisfying their passions, interests and needs. In most cases, such kind of interactions and communication sequel into various types of actions such as product recommendations and evaluations with peers. Influencers, especially those who are regarded as being knowledgeable can have a great impact on the direction which the group will end up following. Although the consumers may not understand on another, there a shared interest ties them on a particular platform. Social Entertainment Online social entertainment incorporates the functionality of entertainment interactivity and content, which includes, communications through video chat, video streaming, music, videos, multi player gaming with the use of social networking services. Social entertainment is the basis of an enhanced, enriching, immersive, interactive and engaged content user experience through social platforms. The difference in social entertainment differs from social networking websites in the sense that social entertainment is framed basically on the immersive and engaging experiences with people and content, functionality. On the other hand, social networking is framed on building and maintaining the association with the users. In essence, social entertainment relates to the individual sites, which are dedicated to specific set of entertainment experience, which incorporates the fundamental services in networking. Within this context is the blending of online content with social features. These interactions result into a highly personalized experience with the user, in turn driving a virtuous cycle of continuous user engagement for service providers (Graffy, 2012, 115) More Reviews on Social Media It is important as Graffy, (2012) notes for corporations to maintain a positive brand image. Failure to check negative attributions concerning the brand image from all sources of media including social media could be a recipe for PR problems. Taking an example from the failure of Motrin Mon organization, the management had failed to monitor and address negative reactions of the public concerning an online advertisement that was directed at mothers. This failure led to the damage of the brand’s image. Though billboards, television commercials and press releases are equally relied upon, they are in essence unidirectional. This is because the audience is passive and is not involved in the communication process, or rather; their feelings or opinions are not obtained. Social media has therefore, a potential of promoting positive images by company representative through an intimate influence with their “fans” and customers. By Interacting with them, they are able to learn and listen to their feelings, and conversations. Social Media can also be used to communicate other aspects not related to product or service issues. By talking other aspects other than product or service matters, clients would see the company representative as a friend who would be trusted and therefore would belief on what they are saying (112) The objectivity in using social media in PR and customer relations by business entities emanate from the desire to interact with members of a given area or specific niche and relaying of information on products, new developments and schemes. They also have a desire of reaching a large group of people that are found on social media. This desire is what makes these firms to use several media including emails, direct mail, drop in, press releases and social media to achieve their objectives. In the present society where social media and internet is increasingly growing, any individual is poised to be a publisher, reporter, and analyst or information collector. Brand ambassadors in social media will therefore, compliment traditional outreach means in Public relations and communications. By following strategies that are customized, they could engage specific niches in public events or interview to obtain their opinions. Brand ambassadors engaging in social media stand for company they represent. It is also necessary for corporations to establish a closer relation with their customers. A part from accessibility is the aspect of authenticity, transparency, and collaborations to meet common concern (Graffy, 2010,89). According to Dozier et al, (2001) public communications is a two-way asymmetric communication where the intention of the sender is to influence opinions, knowledge, and people’s actions (67). Dozier observes that in the present perspective, there has been an increasing need for corporations to get closer to its customers and to make their representatives more accessible to their people. In order to realize this objective, these corporations have come to adopt social networks in marketing. The youthful population especially those between the age group of 16-24 proves to be challenging for the entities with regard to interactions and communicating to them. Study findings reveal that the youth especially those under the age group of 16-24 involve themselves regularly in social media, Overlooking social media tools when communicating company information, or when looking for potential customers would therefore mean alienating this group of people from accessing such information. Andrew (2006) noted that communication or PR functions that appear to be effective were those, which did not rely on traditional media platforms alone in such communications. Rather, such communications also incorporated innovations and consideration of social media. The increasingly high rate of social media usage necessitates that the PR and communication function of corporations to fully understand and incorporate social media in the overall communication function. Giving an endorsement to the use of social networking for PR functions by organizations Bentivegna (2002), notes that social media and the internet in general could enhance a more open communication system. Moreover, the internet harbors a wide range of users and audience that what cannot be compared in traditional media. Use of social media and the internet in general is poised to encourage increased participation. However, it should be noted that social media and the internet should be considered as supplements and not necessarily replacements of the traditional tools. In essence, social media and the internet is very helpful when it comes to participative communication. Even PR practitioners and organizations need to understand the mood and attitudes of the audience and consumers concerning their products and general company. Participative communication was not actually possible before the emergency of social media instruments. The social media instruments have therefore facilitated a two-way interaction between groups or individuals across social and spatial boundaries that were not in earlier times possible. Communication in traditional media usually has boundaries, which have become irrelevant in social media (McQuail, 2005). According to Solis, (2007), the function of the internet has become broader and crucial than just being a new communication channel. She observes that the internet is poised to transform the face of PR and communications not only in business entities but also in many sectors. Solis further explains that social media is a kind of mass communication. The difference is that traditional mass communication tools envisaged a limited number of informants sending information to usually anonymous, large and heterogeneous clique of audience. This difference of mass media and social media is enhanced by the role of social media and its availability by anybody who has access to the internet. Though there is an aspect of anonymity in many social media platforms, transparency of the sender’s identity and the information relayed is a crucial element. In most cases, happens to be the case with professional, corporate utilization of social media including face book, twitter, MySpace, LinkedIn, podcasts, blogs and so on. This is in spite the fact that transparency is not a universal requirement for many social media sites. For instance, a social network site named SecondLife virtual does not allow users to reveal their true names and identity. Conclusion This review has only reinforced the assumption that many organizations and PR practitioners have come to embrace the use of social media in their communications, customer relations and PR activities. This owes to the increasing popularity of the use of social media such as Twitter and Face book and the large number of people who use them. In general, social media cannot be avoided. Rather, it is here to stay and organizations have to embrace it if they want to survive. If not, then it will become a threat to itself. However, social media is not a cure all with regard to organization’s communication, customer relations, and PR issues, they nonetheless supplement or enhance organizational with regard to communication. This paper has noted that communication or PR functions that appear to be effective are those that do not rely on traditional media platforms alone in such communications. Rather, such communications should also incorporate innovations, and consideration of social media. The increasingly high rate of social media usage necessitates that the PR and communication function of corporations to fully understand and incorporate social media in the overall communication function for marketing efficiency. 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