Influence of Social Media Customer Relationship Management Towards Financial Performance: Empirical Evidence of Spa Businesses in Thailand
Keywords:
Social Media Customer Relationship Management, Social Media, Transaction Cost, Financial PerformanceAbstract
Social Media Customer Relationship Management (SM CRM) is an important marketing strategy in the social media era. It focuses on building, developing and retaining the customer relationship through the social media channel. This research article uses quantitative research to investigate the SM CRM model towards financial performance through a mediator, which was Transaction Costs Theory. A questionnaire was used as an instrument to collect the data from entrepreneurs of spa businesses in Thailand (those registered with the Office of Small and Medium Enterprises Promotion). 157 questionnaires were used to analyze and test the hypotheses. Data was analyzed by using Structural Equation Model (SmartPLS3 Software). The findings indicated that spa businesses that had used Social Media Customer Relationship Strategy, either in marketing, sale or service, increased their financial performance. In addition, Social Media Customer Relationship Strategy had not only a direct effect, but also provided an indirect effect, through Transaction Cost Theory. It can be implied that Social Media Customer Relationship Strategy of spa businesses had decreased transaction costs; and with these cost reductions, resulted in increased financial performance.
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