http://www.iaeme.com/IJMHRM/index.asp 60 editor@iaeme.com

International Journal of Marketing and Human Resource Management (IJMHRM) Volume 7, Issue 3, Sep–Dec (2016), pp. 60–63, Article ID: IJMHRM_07_03_007

Available online at http://www.iaeme.com/ijmhrm/issues.asp?JType=IJMHRM&VType=7&IType=3

ISSN Print: ISSN 0976 – 6421 and ISSN Online: 0976 – 643X

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CUSTOMER ENGAGEMENT ON SOCIAL MEDIA:

UNDERSTANDING THE FUNCTIONAL

PERSPECTIVES OF SOCIAL MEDIA TOWARDS

CUSTOMER ENGAGEMENT

Dr. Meenakshi Tomar and Dr. Krishan K Pandey

O. P. Jindal Global University, India

Dr. Devendra K Punia

Entrepreneur, Projects for School, India

ABSTRACT

Social media is the fastest growing area of interest among marketing academicians; however

the focus is largely on uses, usage, tools and tactics than understanding where social media might

fit in an integrated marketing communication mix with respect to customer engagement. This study

aims at highlighting the functional perspectives of social media which contribute towards active

customer engagement that benefit the companies in multiple ways. With the help of extensive

literature review the study has given justifiable reasons to companies for adopting social media as

one of supportive mediums along with traditional media to enrich customer engagement. The

findings are of interest to marketers like to explore opportunities unfolded by social media with its

functional benefit.

Key words: Social Media, Customer Engagement.

Cite this Article: Dr. Meenakshi Tomar, Dr. Krishan K Pandey and Dr. Devendra K Punia,

Customer Engagement on Social Media: Understanding the Functional Perspectives of Social

Media Towards Customer Engagement. International Journal of Marketing and Human Resource

Management, 7(3), 2016, pp. 60–63. http://www.iaeme.com/ijmhrm/issues.asp?JType=IJMHRM&VType=7&IType=3

1. BACKGROUND

Social media is a known phenomenon used for personal conversation and social sharing. Because of its

proven potential, marketers now have started exploring this platform for various marketing objectives.

Though the focus of any marketer is effective promotion, yet this conversational platform has more to offer

in terms of customer engagement. This study shows various insights of active and result oriented customer

engagement on social media which has been achieved through extensive literature review.

Customer Engagement on Social Media: Understanding the Functional Perspectives of Social Media Towards

Customer Engagement

http://www.iaeme.com/IJMHRM/index.asp 61 editor@iaeme.com

2. INTRODUCTION

Social media is the fastest growing area of interest among marketing academicians, however the focus is

largely on uses, usage, tools and tactics than understanding where social media might fit in an integrated

marketing communication mix(Peltier & Scultz, 2013). Social media refers to a group of Internet-based

applications that build on the ideological and technological foundations of Web 2.0, and that allow the

creation and exchange of user-generated content(Haenlien, 2010)

Social Media is defined by another group of authors as: forms of electronic communication (as

Websites for social networking and blogging) through which users create online communities to share

information, ideas, personal messages, and other content (such as videos) (Edosomwan, 2011).

This acknowledges the online community aspect of social media, a natural form of self segmentation

practice among users of Web 2.0(Canhoto, 2013).

The most commonly used social media platforms in 2013 are Facebook, Twitter, LinkedIn, blogging

and YouTube. They were the top five platforms used by marketers, with Facebook leading the way. All

the other platforms were distinctly less popular in comparison to that top five. The top six have remained

virtually the same since 2012(Stelzner, 2013).

Social media’s role in the promotional mix of an integrated marketing communication strategy is

twofold: firstly, to enable companies to talk to their customers; and secondly, to allow customers to talk to

one another (Faulds, 2009). The former is consistent with the role of traditional integrated marketing

communication programs; the latter, is unique. The potential power and scope of opportunity provided by

Social Media platforms comes with a whole set of new purposes for the marketing practitioner and

researcher alike and has become an integral part of marketing strategy(Barnes, 2010).

This study will explore the insights to customer engagement which is believed to be one of the

marketing objectives while a marketer designs his overall integrated marketing communication strategy.

3. LITERATURE REVIEW

(Blackshaw & Nazzaro, 2004) use the term ‘consumer generated media’ interchangeably with social media

and look at it as a form of media which describes a variety of new sources of online information that are

created, initiated, circulated and used by consumers intent on educating each other about products, brands,

services, personalities, and issues.

The characteristics of social media that differentiate it from traditional media channels, stem from the

interactivity of this relatively new medium. There is growing belief that consumer brand engagement needs

to be addressed beyond the transactional level to include all potential touch points with the brand(Peltier &

Scultz, 2013). Two way communication flow between consumer and brand allows a level of interaction

where users of social media become active participants in the brand’s communications program. The

consequences of having highly engaged consumers include increased brand equity, retention, share of

wallet, return on investment and positive WOM(Vivek & Betty, 2012).

By utilizing the transparent, two way communication characteristic of social media, the communication

becomes faster, cheaper and more efficient at delivering the message of the brand’s communications to the

targeted audience. Due to their non-transactional nature, social media platforms such as Facebook and

Twitter are particularly suited for collecting information and feedback from customers, initiating two-way

conversations with customers and developing relationships with customers through communication and

interaction (Haenlien, 2010). The dynamic nature of social media interactions allows highly targeted

marketing efforts, based on the volume and speed of information available to marketers and the rich

customer insights available when users share their consumption experiences (Canhoto, 2013). Online

communities devoted to consumption-related topics are an increasingly important source of data for

marketing research (Kozinets, 2002). Companies like IBM, Nike and the like embrace their communities,

to co-create purposefully; in a way that plans for long term outcomes.

Dr. Meenakshi Tomar, Dr. Krishan K Pandey and Dr. Devendra K Punia

http://www.iaeme.com/IJMHRM/index.asp 62 editor@iaeme.com

Research into changing market segments, identifying emergent demographics, tracking opinions,

‘crowd sourcing’ or using online conversations to aid in product development and ‘always on’ customer

service are just some of the ways social media can enhance the customer engagement(Canhoto, 2013).

Marketers refers to these new research opportunities collectively as being created by a ‘listening economy’

meaning that social media can become a valuable source of knowledge, but the marketer must make

listening a part of their marketing communications strategy. This is ultimately the best way to build a

relationship with a consumer and encourage loyalty and favorable brand associations. Transparency and

being open with the consumer will become commonplace as the customer demands direct responses from a

personality within the company and personalized prices, promotions and communications for their

individual consumption needs. Firms that can influence the ‘likeability’ of their brands by creating unique

transactions with each consumer, reduce the outcome inequity and differentiate them in the marketplace

(Nguyen, Melewar, & Chen, 2013).

The culture of sharing opinions via social media has meant that peer reviews are now more trusted than

the traditional elements of the promotional mix(Faulds, 2009). This creates the need for marketing

managers to use social media to create brand advocates and participate in social media activities that

stimulate positive e word of mouth and brand associations on Web 2.0. As an information channel, social

media is fast becoming the main source of information for many customers in their purchasing

behavior(Haenlien, 2010). Text, photos, video and audio files can easily be disseminated among

customers, and a consistent message aligned to the company values is necessary to utilise this medium to

extend traditional communications, create engagement and extend their social capital.

By enabling customers to talk to one another, social media becomes an extension of traditional word of

mouth(Faulds, 2009). Electronic word of mouth (eWOM) enables a brand message to spread

exponentially via the Internet. Word of mouth (WOM) has the reputation of being the most trusted and

reliable form of advertising(Blackshaw & Nazzaro, 2004). WOM referrals have been found to have a

strong impact on new customer acquisition, and the elasticity for WOM is approximately 20 times higher

than for marketing events and 30 times higher than that of media appearances. Within the SOCIAL

MEDIA landscape of the Internet, WOM, both good and bad, is a trusted source of information and

research suggests that marketers must harness this influence. According to Neilsen BuzzMetrics, more

than 60 per cent of consumers trust other consumers’ online postings about a product or service(Blackshaw

& Nazzaro, 2004). Building online communities can create a panel of experts, and advocates for a brand

to become online ambassadors for that brand where popularity and influence holds the key to brand

engagement (Peltier & Scultz, 2013) and ultimately sales(Keller & Fay, 2013).

Social media is believed to be a medium that encourages two way mode of communication. This in

turn facilitates the companies to seek real time feedback about their product or brand. The companies can

also understand the expectation level of customers. Social media has also proved itself as a trustworthy

source of information .The platform has also enabled firms to win the confidence of the people, imbibe in

them and prove itself as the authentic source about any kind of information thereby building its credibility

among customers and prospects. Social media has made it possible to ensure connectivity among people in

no time. In such scenarios the companies must try and benefit out of the most powerful tool i.e. word of

mouth marketing .The use of this tool is possible only of the companies are able to create a positive image

and belief about their products and themselves in the minds of the people.

4. FINDINGS

Due to the changes and complex nature of growing marketing environment, the customers are becoming

more involved with the brands and products. Given such a scenario it is important for marketers to explore

social media more beneficially for customer engagement.

Customer Engagement on Social Media: Understanding the Functional Perspectives of Social Media Towards

Customer Engagement

http://www.iaeme.com/IJMHRM/index.asp 63 editor@iaeme.com

5. CONCLUSION

The ways in which SM has created a global, interactive, user driven space where the fundamental

principles of mass communication are less relevant, means that marketing communications are redefined

and new approaches to trusted, traditional marketing practices must be proposed, trialed, tested and shared

(Winer 2009). Anecdotal evidence from market research reports suggests that firms use SM, to build

direct relationships with customers, increase traffic to their website, identify new business opportunities,

identify trends and keep up with competitors, create communities, distribute content, demonstrate product,

collect feedback from customers and generally to support their brand (Barnes 2010; Breslauer & Smith

2009).

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