15. CRM in Social Media

Within a short period of time, social media has risen to a multi-faceted, two-way marketing and service channel. Its handling bears novel opportunities, but also large risks. Consumers and firms act and interact on social media platforms in various ways: from exchanging thoughts and recommendations about products and services, seeking help or stating complaints, up to taking part in challenges and co-creation activities. The spectrum of what social media means for CRM extends well beyond simple advertising. Yet, these advancements are still rather young, often prompting firms to act on instinct rather than a solid foundation of truths about social media management. We shed light on different topics in the realm of CRM on social media, each of which presents unique challenges for management: word-of-mouth (WOM) and its impact on brands, return on social media campaigns, brand sales in the entertainment industry, and social couponing. Each paragraph discusses the factors that determine success and failure in social media management, and gives recommendations for marketers.