Conclusions, practical and research implications
Technological advances and changes in consumer behaviour require the firms to transform their CRM conceptualisation and implementation by adding social dimensions and cocreation processes. This evolution of CRM is widely referred to as social CRM; however, research into this field is fragmented and anecdotal (Sheth, 2017; Küpper et al., 2015a). This paper reviewed the related literature and the few emerging industry examples for providing a better understanding and theoretical underpinning of the concept, principles and implementation of social CRM. Regarding the conceptualisation of social CRM, the social media merge with CRM is found to lead to a new CRM strategic thinking that moves away from the traditional onesided, product- or firm-centric transactional thinking and incorporates a more collaborative, customer-focussed and ecosystem approach to managing customer relationships. The collaborative activities afforded by social CRM technologies move customer relationships towards a process of engaging rather than managing people (Greenberg, 2010) for cocreating value within the customer’s ecosystem whereby all the stakeholders are viewed as value creators (Sheth, 2017; Sisko and Lipiäinen, 2015). Social CRM adopts a value cocreation approach whereby the customer and the customer communities are viewed as cocreators of value and relations. Firms need to divert from relationship management to relationship stewardship by managing customers’ ecosystem and affording value cocreation opportunities.