CRM through Social Media and its effect on Brand Loyalty

Abstract: Companies are creating a virtual presence on social media as a response to increasing costs of traditional media channels. The cost to acquire new customers is five times higher than retaining loyal customers. It is important to understand that keeping loyal customer can become a competitive advantage. Social customer relationship management can help companies retain and create loyal customers.
The purpose of this thesis is to gain a deeper understanding of the different dimensions of attitudinal loyalty. As well to understand how mobile providers could take advantage of social media in their CRM work. A case study was chosen with four students in each focus group. One focus group had an international perspective with exchange students and the second group was made up of Swedish students. An interview was held with Telenor to receive information on how companies use social media as a customer relationship management tool. Four concepts were investigated to answer the research questions. The empirical data provides evidence that social media have an effect on attitudinal loyalty and therefore needs careful consideration from companies. Most companies are using social media to some degree and if utilized correctly it can provide a competitive advantage.