The impact of social media on customer relationship management in the restaurant sector

Abstract

Purpose – The purpose of this research study is to explore the effects of social media on the implementation of customer relationship management within the restaurant sector. Design/Methodology/Approach – This dissertation begins with multiple theories and models as presented in literature, together with a description of the evolution of CRM. The study continues with an analysis of both customers as well as restaurant owners, who answered self-administered online surveys regarding the effects of their social media use. Findings – The results obtained confirmed that the majority of customers look at social media networks prior to visiting a restaurant so as to facilitate their decision making. These findings also highlight the type of content which is most influential. Research Limitations/Implications – Due to the dynamic aspect of social media, future research is constantly needed in order to stay up-to-date with the latest social media platforms. Further studies can also include a larger sample of restaurants so as to have a clearer depiction of the situation. Practical Implications – Firstly, firms should recognize the importance of using social media to create brand awareness, especially if their restaurant is new. They should also understand what content to post in order to create long-term relationships with customers, as well as how frequently this communication should occur. Originality/Value – This research study focuses on a fairly new medium for the implementation of customer relationship management. Past research has not delved into the importance of certain content, with regards to customer’s decision making, within this sector. This study discusses these issues in detail.