Main Problem: The ease of publication is great for self-expression but it poses as a problem for businesses when negative consumer experiences are shared on social media. The rapid spread of such information can place businesses in risk of serious financial losses.
Affected group/stakeholder: Businesses mainly in service sector, customers
Agent of change: Defamation Acts set by government, PR Department of businesses
Solution 1 (already implemented): Defamation acts to prevent false accusation
Evaluation: Not able to protect companies from subjective comments so long as they are based on objective experiences.
Solution 2 (already implemented but needs improvement): Implementation and use of social CRM.
Evaluation: Businesses does not engage in proper use of social CRM and does not provide real-time help to customers. Improvements can be made by looking at more successful social CRM model
Implication/Conclusion: Ultimately, the most important aspect in customer relationship management is for companies to consider the feedbacks of customers and modify their business model or practices accordingly. Businesses need to be sincere in communicating with customers and provide commendable service whenever possible. If offline businesses are able to provide excellent services, there will not be a need to worry about inflammatory or damaging remarks on the social media.
Thesis: While there are defamation acts in place to ease the damage from false reports, there is a need to look into better ways to protect and uphold the online reputation of businesses by taking on and improving the current social customer relationship management system (SCRM)
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