The Evolving Role of Social Media effect on CRM on British Airways Company - Research Paper Example

A Business Research Proposal of British Airways The Evolving Role of Social Media effect on CRM on British Airways Company: A Case Study of the British Airways Student’s name Lecturer’s name Institution Date Table of Contents 1.2 Research problem 4 1.3 Study aims and objectives 4 1.4 Research questions 5 2.0 Literature review 5 2.1 Social media 5 2.2 Customer Relationship Management (CRM) 6 2.3 The Evolving Social Media Role of CRM in the British Airways Company and other companies 7 3.0 Methodology 8 3.1 Research method 9 3.2 The sampling method 9 3.3 Study limitations 10 3.4 Ethical considerations 10 4.0 Research timetable: Gantt chart 10 References 11 1.1 Background information Social media has rapidly been developing and it provides a great opportunity for organizations to improve their communications to their target customers as there is an increasing need for them to get closer to them to understand their needs better in the best convenient manner. This has necessitated the establishment of a platform for integration for both the organization and the customers (Dubose 2011, 112). Social media channels have made it easy and possible for the establishment of customer engagement and communication that has brought a new opportunity to the market where the organizations and customers are interlinked more strategically (Mangold & Faulds 2009, 360). The role of social media is very critical in today’s market, as business are desperate of attracting new customers and retaining the new ones as there is intensified competition in the market share of the customers (Kaplan & Haenlein 2010, 63). The airline industry is one of the most competitive markets in the service sector. Major airline operators in the industry are fighting to not only understand the needs of their customers but also in tracking their level of satisfaction with their services (Prokesch 1995, 109). As a result, the utilization of modern social technologies in reaching the customers has become a fundamental practice to enhance competitiveness among key players in the industry. A key player in the airline industry in the United Kingdom is the British Airways that owns about 47 per cent of UK airline market share (Mills 2003, 17). The purpose of the research study is focusing on the role of the social media on the British Airway Company as part of the company’s Customer Relationship Management strategy (CRM). 1.2 Research problem As a result of the low differentiation of the services offered in the industry, the airline industry has become one of the markets under stiff competition in the service sector. As a result, major firms operating in the sector are adopting devise innovative strategies to improve their relationship with their customers through the Customer Relationship Management systems (Belobaba et al. 2009, par 1). The social media has developed to be one of the most effective and convenient platforms due to its popularity where customers are engaged, and communication is also enhanced. CRM has been related to understanding the needs of the customers and addressing them in a timely manner thus social media plays a key role in enhancing effective CRM (Verhoef 2003, 33). In regards to the to the intensified competition in the Airlines industry, the study will aim at exploring how British Airways social media has remained the leading UK airline company in the industry. The theoretical contribution of the research study is the provision of guidance on the evolving role of the social media in changing CRM systems in the best way possible in the airline industry as well as enhancing a deep understanding of social media role in Customer Relationship Management capabilities. 1.3 Study aims and objectives The study aims at establishing social media role to facilitating CRM viability in the British Airways company. The following are the research objectives of the study: 1) To determine the role of social media in the creation of a viable CRM in the British Airways Company 2) To establish basis of considering social media as an effective channel for CRM service oriented businesses like in the airline industry. 3) Exploring the processes contributing towards effective CRM in the British Airways Company and the industry 1.4 Research questions The research question for the study is “what is the role of the social media in CRM in the British Airline Industry?” with regards to the research question, the following sub-questions have been adopted by the researcher to guide the study: 1) What is the role of the social media in the creation of a viable CRM in the British Airways Company 2) Why is the social media platform effective for ensuring a successful CRM in enterprises such as the Airline industry? 3) What are the processes contributing to an effective CRM in the British Airway Company and other companies in the industry? 2.0 Literature review 2.1 Social media Social media channels provide platforms for interaction among people where they have an opportunity of exchanging and sharing information created by their own through the social networks channels. The social media is a web-based system of applications that allow the users to transfer and share information through the technological channels (Mayfield 2008, 36). With the recent rise of technology, more interactive web-based applications have been developed enabling the users to share and interact with each other more closely and efficiently (Gilbert & Karahalios 2009, 214). According to Dubose (2011) the popularity of social media is around 58 percent of individuals in the world and has emerged as one of the worlds most accepted technologies. According to Weinberg & Pehlivan (2011) the popularity of the adoption of social media can be attributed to its increased societal acceptance that has made it one of the most popular social world technologies. It widespread popularity is also attributed to its ability of meeting its users’ needs in the best possible and convenient ways (Zeng et al. 2010, 14). It is clear that social media utilization will continue to grow to be one of the easily accessible as well as most accepted social technologies transforming the way individuals, communities and groups interact with one another. Thus, social media use can be considered as the most suitable platform where individuals across the world rely on for engagement and communication (Hanna et al. 2011, 271). 2.2 Customer Relationship Management (CRM) CRM is a business strategy that is leveraged on technology utilization designed with the purpose of engaging the clients in a collaborative manner. The main objective is building a customer-focused culture through the maintenance of close contacts with the customers to enhance long-standing relationships with the organizations (Chen & Popovich 2003, 682). A fundamental domain of customer relationship management is the delivery of an outstanding customer experience that is achieved through focusing on the particular needs and social values of the clients enhancing their satisfaction. A key contributor for the development of an outstanding customer experience is the development of meaningful customer relationship through a CRM platform (Richards & Jones 2008, 125). As a result, the customers have the ability of deriving value from the established interactions that further fosters their organizational relationship enhancing the organizational success (Urbanskienė et al. 2008, 59). Another essential domain of Customer Relationship Management is the enhancement of active customer engagement that contributes positively towards the client needs better understanding. It is very easy to collect the customer’s feedback through actively engaging them that, as a result, improves a better understanding of their particular needs. Thus, it is essential for the CRM systems to be interactive enough so that they can engage the customers through active interactions (Khodakarami & Chan 2014, 30). The active customer engagement through the CRM systems that are interactive in nature is effective in enhancing good customer relationships as well as improving the understanding of their needs. It is keynoting that the systems of CRM need to be readily available to the customers, flexible and customizable to be able to accommodate the various dynamic customer needs (Payne & Frow 2005, 174). 2.3 The Evolving Social Media Role of CRM in the British Airways Company and other companies The airlines industrial sector has become one of the most competitive and dynamic industries due to the technological nature and its customers segmentation. The high competition levels have made it quite important for the players such as the British Airways Company to develop innovative customer relation strategies to be able to meet their needs and understand them better. In response to the high levels of completion in the market, major companies in the industry have been working tirelessly to ensure that they attract more customers and retain the old ones (Boland et al. 2002, 19). From the increased popularity of the social media as a rapid growing media technology, it has made it easier for the companies to interact with their customers through the online media platforms expanding their real time value. This is an evident indication that media plays an essential role in the sector through the provision of an efficient platform where the customers are actively engaged enabling the companies to understand the needs of their clients better by gathering their feedbacks (Belobaba et al. 2009, par 1). The media platforms are thus essential as they facilitate the delivery of outstanding customer’s experiences. Considering the flexibility and easiness of social media utilization, it has grown to be one of the most recognized social technologies in the society (Management 2011, 20). According to Bygstad & Presthus (2013) the utilization of social media channels in CRM systems is an effective move for enhancing customer relations. In the recent times, individuals are more inclined to social media use for communication with families, friends and companies (Belobaba et al. 2009, par 1). In regards to this, the British Airline Company as the leading UK airline company has adopted the social media strategy of engaging its customers in meaningful online experiences to determine their needs and level of satisfaction of their services as well in building of their brand. British Airways Company is the greatest global planned airline in the UK and one of the world’s primary premium airlines. He company position the London Enterprise is notable, as its tough brand label has aided it in recording a high expansion sale in the household and global markets (Grundy & Moxon 2013, 58). It has made the most effective use of the social media to interact with its customers as well as marketing its brand. 3.0 Methodology As the aim of the research study is exploring the social media role in CRM in the airline sector, the study adopts an exploratory research method to seek more insight on how social media impacts on CRM in the industry thus it takes an interpretivism stance. In regards to the social media dynamic nature, up to date information is necessary is explaining why and how it is an essential platform contemporary to CRM. With this regards Exploratory research study design is the best suitable design in regards to the nature of the research problem. 3.1 Research method As illustrated earlier, the research is exploratory in nature and only qualitative information will be collected with an aim of providing the relevant answers to the study questions. In the collection of information, Triangulation will be utilized where focus groups and netnography will be used. The population to be targeted by the focus group is the university students, and the researcher will select 30 students on a random basis to take part in the study. The primary aim of the focus groups is discussing on how the participants have been interacting with the airline services via the social media. According to Kitzinger, (1994) focus groups expose the researcher to a wider view of the response thus will be quite useful in the study. Netnography, on the other hand, will be done through Twitter and Facebook pages of the British Airways Company. This will entail tracing the communication and response trends between the customers and the company to make essential observations according to the research objectives. Kozinets (2010) stated that netnography as quite useful in instances where financial and time constraints are a limitation, and its use is key in saving time and money. Utilization of the two methods of the collection of information “netnography and focus groups” will enhance the reliability of the study finding. 3.2 The sampling method The study research participants will be students in the university where focus groups will be used. The research study will utilize probability sampling to collect the participants that will involve the selection of 30 students at random to take part in the study. All members in the university will have equal chances of taking part in the study, as there no specific criteria for selecting the participants will be used. Random sampling helps in reducing sampling bias that may interfere with the study results (Torr & Davidson 2003, 357). 3.3 Study limitations The study may not reflect the actual situation in the field as the participants are students with the same social characteristics thus will influence on the quality of the research information. 3.4 Ethical considerations The participant’s ethical considerations will be considered, and consent will be sought before participation in the study. Their confidentiality will be upheld, and no personal details will be collected from the participants. The objectives and aims of the study will also be communicated to the participants before the start of the study, and they will be protected from any harm that will result from the study. 4.0 Research timetable: Gantt chart Activity Time scale (week) Proposal writing 1-2 Reading literature 3-5 Finalizing study objectives 6 Preparation of focus group questions 7-8 Draft a literature review 9- 11 Conduct a pilot study 12 Conducting a focus group and netnography 13 - 15 Evaluation and analysis 16 – 19 Writing on the conclusion and dissertation finalizing 20- 24 Submission 25 References Chen , I.J. & Popovich , Karen , 2003. Understanding customer relationship management (CRM): People, process and technology. Business Process Management Journal, 9, pp.672–688. Belobaba, P., Odoni, A. & Barnhart, C., 2009. The Global Airline Industry, Boland, D., Morrison, D. & O’Neill, S., 2002. The future of CRM in the airline industry : A new paradigm for customer management. 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