Social Media Customer Relationship Management Model Leading to the Creation of Financial Benefits of Business

Abstract

The purpose of this paper is to study Social Media Customer Relationship Management (SM CRM) Model that leads to creation of financial benefits for businesses. SM CRM is the marketing strategy that used in social media era and by using social media technology for communication, it can create good relationship with customers. From the literature reviews, the impact of SM CRM is confirmed that will have an impact to relationship on financial benefits of businesses. However, there is lack of evidence of using transaction cost as mediator variable in the model. Thus, the researcher has reviewed the literature to conclude, analyze, and synthesize to understand the complexity the relationship between SM CRM and financial benefits. For using SM CRM of businesses to be successful, fairness is another important factor because it is a strong bong for making relationship. Because of exchanging and trading system with fairness, it will create sustainability with quality relationship and can enhance customer relationship. Moreover, the perception of fairness of employee and customer will have an impact on attitude, decision making, and including the behavior that lead to organization performance. Hence, businesses need to pay attention and importance to creating the perception of fairness for employees and customers. Creating fairness is brought to the model for moderator variable for explaining the level of relationship between SM CRM and financial benefits that depends on the creation of fairness on customer and employee. Therefore, this study helps to clarify the pattern of SM CRM with fairness and can reduce the transaction costs, leading to the financial benefits of the business.