Social Networks and Customer Relationship Development at the Saudi Telecommunication Service Providers

Abstract

This paper is aimed at examining the relationship between the use of social networks and customer relationship development at the three telecommunication service providers in Saudi Arabia. It is also aimed at identifying some factors that may influence the companies’ relationships with their customers. Drawing on previous research, the researcher has selected three factors related to customers on social networks: trust and loyalty, service assessment, and information engagement. The study revealed a strong association of the use of social networks with the company’s customer relationship development, trust and loyalty, and service assessment, but not with information engagement. The findings also demonstrated significant positive associations of trust and loyalty, and service assessment with customer relationship development. However, an insignificant positive relationship was found between information engagement and customer relationship development. To leverage the effectiveness of customer relationship management at telecommunication companies in Saudi Arabia, the study recommended these companies to adopt the concept of Social Customer Relationship Management (Social CRM), and to develop customer service skills of their staff in charge of social networks. The study also pointed out the importance of encouraging customers to use social networks to connect with companies, rather than just using the traditional methods. Furthermore, the study recommended the companies to pay more attention to the customers’ assessment of their social networks, and to ensure security and privacy of their data. Ultimately, the companies need to focus on providing customers with the needed information, and benefiting from their feedbacks on social networking sites.