Negin Salehi*, Farzaneh Bikzadeh Abbasi and Soheila Sardar
Social media usage has become pervasive and firms need to use it in their business to meet their goals and objectives. The purpose of this study is to examine how social media usage can help firms build new CRM capabilities and thus improve marketing strategies and business performance. In this study we investigate the impact of customer relationship management capabilities through interaction with customers in social networks on the performance of Ofogh Kourosh chain stores (a business firm group in Iran). The present study is descriptive in terms of method and applied in terms of purpose. The statistical community is Ofogh Kourosh stores and its customers who have interacted in social networks related to this company such as Instagram. Statistical data has been collected as based on the level of activity of the company and customers’ participation in the social network during 4 years from 2016 to 2020. We analyzed data from Ofogh Kourosh chain stores using Instagram as social media data and Tehran Stock Exchange and Securities Organization codal database for financial data during that period. we used Stochastic Frontier Analysis 4.1 and Stata14 for our descriptive and inferential statistics and analyzed our hypothesizes Highlights as the result of this analysis, it was confirmed that the social capabilities of customer relationship management have a positive effect on customer engagement and participation, as well as the performance of Ofogh Kourosh stores. We also concluded that customer engagement and participation has had a positive impact on the performance of Ofogh Kourosh stores in our research period.
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