The effects of social media on customer loyalty are debated.
However, there is evidence to support the claim that a strong presence on
social media is a good way to build a brand image and earn the trust of the
There are several factors that affect a company's success
and the effectiveness of its marketing efforts. One such factor is the quality
of the products and services provided by the company. Hence, companies should
take measures to ensure that they meet the needs of their customers. In this
regard, the role of social media is of critical importance. Its ability to
create brand image and earn customer trust has made it a valuable asset for
The most important component of social media is the fact
that it gives an opportunity to companies to interact with their customers.
They can respond to their customer requests, listen to social chatter and even
monitor their keywords. This allows them to develop a customer's social profile
and determine their preferred social channel. Moreover, they can identify and
recognize loyal customers. With that information, companies can take the necessary
steps to boost their customer retention.
Social media also helps companies in other ways. For
instance, the study found that electronic word of mouth (E-WOM) has a positive
effect on customer loyalty. Similarly, customers who have positive experiences
are more likely to share their experiences with other people. Additionally,
they are more likely to recommend a product or service to a friend or
colleague. Using these methods, companies can glean valuable information and
create a personalized relationship with each and every one of their consumers.
Despite its potential benefits, companies have been slow to
adopt this technology. Among the many challenges to overcome are establishing a
proper infrastructure, engaging with customers on a consistent basis and
determining what is important to their consumers. As such, the effects of
social media on customer loyalty are still largely understudied.
Several studies have already been conducted, but most have
not taken into consideration the role of CSR in the social media context.
Therefore, this study takes the time to explore whether social media can be an
effective tool in promoting customer loyalty. While the findings suggest that
CSR through social media is indeed an effective means to generate customer loyalty,
they do not provide any definitive answers as to which particular CSR practices
work best. Rather, the paper suggests that future researchers should consider
including more variables in a research model.
In addition, the study also suggests that companies should
consider using more than one type of social medium. For instance, social media
is the ideal platform for one-to-one communication, and there are many
different ways that a company can do this. Moreover, one-to-one communication
can be moved from the social medium to other physical channels.
Finally, the study found that the effects of social media on
customer loyalty were moderately strong. However, it should be noted that the
effect was only visible in the United States, where a large proportion of the
population is highly engaged in social media.