Can SMEs Capture the Social Media Phenomenon?: CRM Strategies to Improve Relationship Performance

Abstract

This paper examines the implementation of Customer Relationship Management (CRM) and the role of social media in small and medium enterprises (SMEs). Understanding these phenomena is very critical since SMEs have used social media to interact with their customers, however little researches has been conducted so far that linked social media and CRM capabilities. This study applied a sequential mixed method, including interview with informants, and surveys to a total of 206 respondents in the SMEs Gapura Digital forum. The collected data was checked using the structural equation modeling. This study clarifies that social media is a mandatory tool to connect with customer needs. In which the environmental context has a positive impact of 24% therefore, this study suggested an application of CRM in SMEs which is strongly motivated by the environmental context, such as a forum or group of SMEs that enable them to coordinate and exchange information easier among themselves. The study of this phenomenon is expected to contribute to the development of science, especially CRM and SMEs.