Usage of Social Media Systems in Customer Service Strategies

This paper examines the efficacy of social media systems in customer complaint handling. The emergence of social media, as a useful complement and (possibly) a viable alternative to the traditional channels of service delivery, motivates this research. The theoretical framework, developed from literature on social media and complaint handling, is tested against data collected from two different channels (hotline and social media) of a German telecommunication services provider, in order to gain insights into channel efficacy in complaint handling. We contribute to the understanding of firm's technology usage for complaint handling in two ways: (a) by conceptualizing and evaluating complaint handling quality across traditional and social media channels and (b) by comparing the impact of complaint handling quality on key performance outcomes such as customer loyalty, positive word-of-mouth, and cross-purchase intentions across traditional and social media channels.