How social CRM and customer satisfaction affect customer loyalty

Abstract

Purpose Based on relationship marketing theory, this study aims to test the effect of social customer relationship management (social CRM) on customer satisfaction (CS) and loyalty (CL). Design/methodology/approach To assess the proposed framework, structural equation modeling was performed on the data of 314 automotive customers surveyed online. Findings Social CRM dimensions [traditional CRM (TCRM) and social media (SM) technology use] have a direct and positive effect on CS. On the other hand, only TCRM has a direct and significant influence on CL, while the SM technology use effect seems to be indirect rather than direct. Indeed, the findings have provided empirical support for the contention that CS plays a mediating role between social CRM dimensions and CL. Practical implications In the automotive sector and developing countries in particular, companies’ managers could increase CS and CL and consequently enhance their competitiveness and market share by adopting an effective social CRM strategy. From this perspective, companies should focus their social CRM campaigns on the most SM used by customers, offer personalized choices and improve customer experience, interaction and value co-creation. Originality/value This paper enriches the understanding of how social CRM can affect CS and CL. The scales of social CRM, CS and CL were validated in the context of developing countries and the automotive sector. Furthermore, the direct and mediating effect of CS between social CRM (TCRM and SM) and CL was also confirmed.