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Defining and measuring social customer-relationship management (CRM) capabilities

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  • Hyun Gon Kim

    (Rutgers, The State University of New Jersey
    The School of Business – Camden)

  • Zhan Wang

    (Saint Cloud State University)

Abstract

Companies find it necessary to develop new social customer-relationship management (CRM) capabilities to facilitate their customer-related performance. This study seeks systematically to conceptualize and measure social CRM capability, defined as a firm’s efficiency in integrating and converting social media marketing resources into desired sales revenue and customer-relationship outcomes. This definition focuses on the firm’s competency in obtaining, generating, organizing, and integrating information from customers’ social media engagement to maintain and improve the custome-relationship and its own financial performance. Adding to the conventional input–output stochastic frontier model, this study proposes including social media resource inputs and customer-related outcomes to measure social CRM capabilities. An empirical application suggests that social CRM capability is critical; investing in social media technology can lead to substantial CRM benefits and greater market value for the firm. Marketers should focus on developing strategies that emphasize customer-relationship building through social media, which allows for more customer involvement and interactions between the customer and the business.

Suggested Citation

  • Hyun Gon Kim & Zhan Wang, 2019. "Defining and measuring social customer-relationship management (CRM) capabilities," Journal of Marketing Analytics, Palgrave Macmillan, vol. 7(1), pages 40-50, March.
    • Handle: RePEc:pal:jmarka:v:7:y:2019:i:1:d:10.1057_s41270-018-0044-8
    DOI: 10.1057/s41270-018-0044-8
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