The Role of Social Customer Relationship Management in Improving Relationship Performance in Small Businesses

Abstract

The advent of social media allows SMEs to use marketing information gleaned from social media to develop functions that enable them to serve their customers better. Small businesses can improve their communication with customers through social media to understand their ideas and thereby increase their profits. Small businesses can gain brand awareness on social media at a lower cost, as consumers can spread word of mouth to more potential customers on social media. SMEs can get information about changing customer preferences for products and services by communicating with customers on social media. Marketing insights gained from social media can support innovative strategies to improve retailer performance. SMEs can use information obtained from customers via social media to make accurate and timely brand innovation decisions. This research uses the PLS-SEM method to study the relationship between social factors in information processing and customer relationship performance. Data collection using interviews and distributing questionnaires to SME merchants. This study aims to influence customer relationship performance by studying the impact of social customer relationship management (s-CRM) and customer relationship store positioning on customer engagement and social information processes.