How Social Media Communications Combine with Customer Loyalty Management to Boost Green Retail Sales

Abstract

This paper explores the combined impact of social media and customer relationship management (CRM) on retail sales in the context of green (aka organic, natural and healthy) retailing, specifically in terms of duration. In particular, the study explores the impact on green retail sales of altruistic or egoistic marketing posts on a Facebook brand page relative to CRM membership over time compared with other types of sales. The results show that the purchase expenditures for longer-term members of a retailer's loyalty rewards program are higher and that over time, consumers are more likely to respond to messages related to healthy benefits than to those related to price and environmental benefits. This study demonstrates the value of managing social media in conjunction with CRM, which can positively influence the purchase behavior of a retailer's most valuable customers.