Customer relationship management : the potential of social media and cloud computing toward local small-to-medium sized enterprises

Abstract

Paul Greenberg (2010) has speculated a change within CRM software due to the innovation of cloud computing along with the growth of social media and its major role in the marketplace leading Social CRM along with new challenges and opportunities in the business environment. This paper investigates the potential of social media and cloud computing toward local SME. Methodology The first empirical part of the paper is comprised of an exploratory research for the problem under investigation by an experience survey with an expert in the field and followed by 10 depth interviews with business software vendors. The subsequent empirical part of the paper is comprised of a descriptive research throughout a sample of 650 local SME to supplement the findings in the first empirical part. Findings Findings suggest that the innovation of cloud computing is enabling vendors to provide a much cheaper, more flexible and less complicated CRM software for local SME. Although many SME were quite unfamiliar with related software and face various constraints to adopt it, findings have revealed social media to play a vital role in the business environment, where many have established themselves in various social networks such as Facebook to communicate with their customers; leading to a higher potential for Social CRM software. Practical Implications Along with a Social CRM model designed specifically to fit with local SME, an innovation of a corporate social network may be the key to solve the current constraints that are preventing various SME to adopt Social CRM software.