Engaging with Customer Using Social Media Platform ... - Science Direct

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Available online at www.sciencedirect.com Procedia Computer Science 00 (2018) 000–000

ScienceDirect

www.elsevier.com/locate/procedia

Procedia Computer Science 124 (2017) 4–11

4th Information Systems International Conference 2017, ISICO 2017, 6-8 November 2017, Bali, Indonesia

Engaging with Customer Using Social Media Platform: A Case Study of Malaysia Hotels Kamarul Faizal Hashima*, Nawar Abbood Fadhilb College of Engineering & IT, University of Dubai, P.O Box 14143, Dubai, UAE Department of Information Techniques, Technical College of Management, Iraq

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Abstract Social media is gaining its popularity among hotel operators as one of the important platforms to market their facilities and establish relationship with customers. In general, most of previous studies that examine this topic focuses on the effects of using social media among hotel operators (i.e., electronic words of mouth); and examine the adoption issue of this platform. However not much of attention given towards understanding how hotels are utilizing this platform to engage with their customers. This study aims to understand the implementation, challenges and technique used to measure the level of engagement using social media platform among hotel operators in Malaysia. This study adopts a qualitative case study approach and the data are collected using a semistructured interviewing technique. The data were analyzed using content analysis technique. In general, the results indicated that five-star hotels in Malaysia is not utilizing Facebook platform at its fullest potentials. Hotel operators are having challenges in maintaining the level of engagement with the customers and above all, hotel operators in Malaysia does not have good knowledge on how to measure their level of engagement with the customers. This study ended with suggestions on how to measure customer level of engagement using Facebook platform and discussion related to research limitations. © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 4th Information Systems International Conference 2017. Keywords: Social media; Interactions; Online engagement; Tourism and Hospitality.

* Corresponding author. Tel.: +9714 5566944 E-mail address: [email protected] 1877-0509 © 2018 The Authors. Published by Elsevier B.V.

Peer-review under responsibility of the scientific committee of the 4th Information Systems International Conference 2017.

1877-0509 © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 4th Information Systems International Conference 2017 10.1016/j.procs.2017.12.123

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Kamarul Faizal Hashim et al. / Procedia Computer Science 124 (2017) 4–11 Kamarul Faizal Hashim and Nawar Abbood Fadhil / Procedia Computer Science 00 (2018) 000–000

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1. Introduction The emergent of social media technologies have benefited hotel operators in promoting their hotel locally and internationally. Nowadays, travellers are passionate to share their travel and vacation experiences on the social media platform. They shared not only positive comments, but also negative comments based on their vacation experiences [1]. Social media is becoming an important tool used to assist travellers in planning their vacations [2]. Through social media platform, a traveller can gather information about travel’s destination, accommodation, tour and attractions/promotions [3,4]. Besides benefiting travellers, social media technologies are helping hotel operators engage with current and potential customers [5,6]. Through social media, hotel operators can understand the needs of their customers and compete against their competitors better [7,8,9]. Despite the advantages of this platform, hotel operators are also exposed to the negative effects of this online platform if it is not managed effectively. For instance, allowing questions or feedback unattended for some period of times indicate that the hotel operators are not serious in listening to what the customers are telling them [10]. This on the other hands will turn to negative words of mouth that might affect the hotel’s reputation. In this study, customer engagement is defined as communication between customers and hotels operators using social media. Understanding how hotel engage with their customer is important as it is one of the critical approach to ensure continuous relation with customer using social media platform [11]. This continuous relationship is important towards ensuring hotel operator’s online presence and sustainability [12]. From the literature analysis, it shows that most of previous studies that examine social media in tourism and hospitality domain are mainly focusing on the effects of using social media platform (i.e., electronic word of mouth). Besides that, previous studies are also directed towards examining the adoption issue related to this platform. Despite all the attention given, very few study focuses on understanding how hotels are utilising this platform to engage with their customers. This lack of focus has led to the used of social media platform by customers to share negative experiences after visiting hotel in Malaysia [1]. These negative comments should be handled carefully through proper engagement between hotel operators and customers. This claim has interested this research to examine how do hotel operators in Malaysia manage their social media platform? What are the challenges hotel operators in Malaysia are facing when managing this platform? And how do hotel operators in Malaysia measure their level of engagement with their customers using this platform? Thus, by examining these research questions, this study can fill in the gap by providing a better understanding about the utilisation of social media platform among hotel operators in Malaysia towards establishing better customer engagement. This paper is organised as follow. The first (this) section outlines the research motivations. The second section discusses the literature reviews related to the topic of this study. The third section discusses the research method. The fourth section presents the research findings. The final section concludes by addressing the contributions of this study. 2. Previous studies on social media in hotel The proliferation of social media usage among hotel operators has dramatically changed how hotel produce, market and deliver their products/services and communicate both internally and externally with their customers [13]. The adoption of this technology seems to be inevitable because of the benefits that it provides [14] and becoming crucial to hotel industry [15]. Social media is becoming one of the valuable marketing tools among hotel operators [16]. About seventy-five percent of hotels are using social media for marketing purposes and Facebook and Twitter have been identified as the top two social media tools used by hotel operators. Through social media, hotels are disseminating information, promotion sales and attracting potential and returning customers. Hotels are coming out with many innovative ways to promote their hotel using social media [17]. Many researchers concluded that online user reviews through social media have a persuasive impact on online sale for hotels (e.g., [18], [19]). Besides acting as a marketing tool, social media is also used as one of the main communication channels for the hotel to connect with existing and potential customers online [20, 21]. Social media is used as a communication medium for hotels to understand customer’s needs and try to provide the best of services by the hotel to customers [22]. In general, it can be concluded that most of the previous studies that focused on this topic mainly concentrated on the adoption issue (e.g., understanding user’s perception to adopt social media) ([23], [24]), examining the value of information shared on social media by hotel operators [25]; understanding the effects of word of mouth created using social media and analyzing the level of usage among hotel operators [26]. However, how hotel operators are operating


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this platform for their own benefits (i.e., engaging with customers) is not clear. Thus motivated by that, this exploratory research is interested to answer the following research questions: i) how hotel operators are using Facebook to support customer engagement activities? And how they are motivating customers to participate? ii) how do hotel operators measure level of customer engagement using Facebook? iii) what are issues or challenges faced by hotel operators in operating their social media platform? Who is responsible in managing this platform? 3. Research Methodology 3.1. Respondents In this study, the focused is given only to 5 stars’ hotel in Malaysia. Five stars hotels in Malaysia was chosen as a case study because of its convenience. Researcher is based in Malaysia when the research was conducted. Meanwhile five stars hotel categories were chosen due to suggestions from previous studies that this type of hotels might provide a better understanding of how hotel operators used online platform. According to [28] these hotels usually have the expertise, financial resources and technical ability to manage social media platform in a professional manner. Thus, based on that arguments, it justified the selection of five-star hotels as respondents of this study. This study invited 20 five-star hotels in Malaysia to participate in the interview sessions, but only five hotels agreed to participate. The list of five stars hotels was obtained from a hotel online booking site (www.booking.com). Despite the small number of respondents, this study believes it is still sufficient because a sample of five or six may be sufficient for the researcher intending to achieve additional supported data or having an exploratory research objective [29]. Since the main objective of this study is exploratory in nature, thus a sample of five respondents is sufficient and acceptable for the objective of this study. The face to face interview took three weeks to complete and each interview took about 50 to 75 minutes. Each interview was conducted at the hotel where the participants were working and it is conducted in English. 3.2 Demographic Profile of Respondents In general, all the respondents have a good understanding of how social media is used by hotel. Majority of them have involved directly or indirectly with either managing, using or monitoring hotel’s social media platform. In term of working experience in hotel industry, majority of the respondents have a working experience of three years and more. Majority of the respondents are holding a managerial position and most of them coming from marketing department. Thus, it can be concluded that the profile of the respondents is suitable and helpful for researchers to achieve its research objective. Table 1 illustrates the demographic statistics for the respondents. Table 1. Respondents Demographic ID

Position

Years of experience

Gender

Age

P1

Marketing executive

8 years

Female

35

P2

Online marketing executive

2 years

Female

29

P3

Marketing and communication manager

3 years

Female

28

P4

Senior guest service manager

3 years

Male

29

P5

Management Information system MIS manager

7 years

Male

32

3.3 Data Analysis In this study, five open-ended questions were asked to the respondents. The following sections describe the research findings based on the five questions asked during the interview sessions. Q1: How does your hotel use Facebook to support engagement with customers?

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Since using social media is significant to increase the engagement and interaction between hotel and customers, all respondents acknowledged the importance to actively update the information provided on the page. All respondents agreed that one of the most important activities that need to be done is to update the Facebook page on a regular basis. Hotel operators should always make sure the customers were always updated with new promotions and events conducted by the hotel operators. Besides that, the respondents also mentioned the need to always post the pictures and videos related to the activities conducted by the hotels. Creating suitable content is very important to create an interactive atmosphere between customer and hotels. Besides giving information about hotel’s promotions, three out of five participants mentioned that Facebook is also used to reply to customer’s queries, complaint acknowledged and comments. Not being able to respond to customers might lead to loss of customers. “…It is very important to reply all enquiries/comments posted ... If customers have a question, we must reply to them immediately…if they see the hotel as effective in responding their enquiries, it will create positive early bonding with the customers…if you are not being responsive they will start going to another page” (P1) “People share almost everything on Facebook...they have no problem sharing their bad experiences with their stay with the hotel… So, whenever we know there is negative issue related to our hotel, we will contact them directly and try to solve the problem” (P2) “…Making the customer happy is the most challenging part… we try our best to follow up all comments and complaints from guests…” (P5) Q2: How does your hotel measure the level of customer’s engagement using Facebook?

Based on the analysis it was noted that there are two approaches used by hotel operators to measure their level of customer’s engagement using Facebook – i) using analytical tools available online; and ii) manual observation of activities taken place on others Facebook account. Although, Facebook-analytic function was used, but their level of knowledge on how to take advantage from the analysis is still at infancy level. “Yes, we do. We measure the statistics using Facebook analytic features. We analyse the statistics every week…” (P1) “Although we used the analytic functions, but the analysis generated are basic and we are still learning on how to take advantage from the analysis.” (P3) Besides using analytical tools, two of five participants observe others online activities by monitoring the number of likes, the number of comments, notifications and number of the page shared. “We don’t use any tools, we only observe how famous other post (advertisement material)” (P2) “Most of the time we observe any comments related to use in tripadvisor.com, booking.com, and Facebook…” (P4) Usually, when monitoring their online engagement, hotel operators will give attention towards number of pages likes given by customers. This is the most important indicators that they used to demonstrate that their customer is engaging with their hotel: “Our focus is on the number of likes per week because it represents the number of our followers/fans” (P1) “The first thing I see is how many like increase for a day…” (P3) “In fact, when I open the hotel Facebook account, the first thing I will focus to is the number of ‘likes’… because we need to see how many likes we have” (P4) Besides number of likes, participants also focus on the comments posted. “…if someone comment it means that they are interested with our hotel, promotion or package… that is a good signal” (P1) “We always give priority in identifying negative comments... if not handled carefully, usually customer will start sharing their bad experiences to their network of friends…” (P2) “By answering customers’ enquiries, we know that our hotel is always in their list when they visited Langkawi…” P4 Q3: Who is responsible for maintaining or developing strategy campaign, using hotel Facebook page? All the participants mentioned that there are specific personnel responsible for managing their Facebook page and mainly these personnel are from the marketing department. These department are responsible to prepare the marketing strategy, policy and guidelines. They are also responsible to make all the marketing resources.

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“We also have our head office that makes all the guidelines that we follow” (P2) “We actually have support from our corporate office bases in Singapore, it is the major corporate office, so we get support from them…basically, the strategy comes from them and on a local level we adapt for ourselves…” (P3) Q4: How does your hotel motivate customers to engage with your Facebook account? The participants have various ideas about how to make the engagement with customers. Two out of five participants stated they motivate the customer to engage with the Facebook page through giving the guests gifts or free services during their stay. “We are offering our guest who checks-in their stay using Facebook, a free 20 minutes foot massage... if your picture or video is acknowledge as attractive and can promote the hotel, we might give the customer 1 night stay with the hotel…We are using the power of crowd to help promote our hotel” (P1) “Prizes and gifts from hotel always help to boost hotel’s increase their number of likes and post/comments etc.” (P2) From the analysis, hotel operators also invite popular individuals (e.g., actors, singers) to become their guests. Usually, hotel will promote their positive experience as marketing strategies to engage with potential customers. Customers usually will respond positively to this type of posting. That mentioned by one participant: “Recently we start using YouTube influence characters. For example, we have people who are famous on YouTube but they are not Hollywood stars, we have them at the hotel for free for two night and then they have maybe 200,000 followers, 300,000 followers. So, they post, post, post … and within one week we can see an increase of 100 or 200 likes for social media pages.” (P4) Finally, hotels also highlight customer positive experience and used it as their promotion materials. Customers usually feel honoured when hotel showcase their vacation and experience to wider audiences. This stated by one participant “So, if they take a nice picture we will re-post it and thank them for the picture and then they feel honoured to have their picture feature on our page” also mentioned “if we have media that checked in the hotel and they want to write something nice, we will repost it. Like a nice text and nice review then we will repost them” (P1) Q5: What are the difficulties faced by your hotel when trying to increase the level of customer’s engagement? From the interview, providing quick feedback from customer’s inquiries has been identified as one of the major challenges faced by hotel’s operator. One out of five participants referred that customers usually expect hotel operators to provide real-time response to inquiries or comments. “I think one of the biggest challenges is to respond to customer on time. We work on shift basis and try to maximize our working operation. Rarely are we able to answer a customer’s questions on time…” (P3) Not only that, hotel operators are also having challenges to come out with good and creative promotion materials to increase participation from the customers. One of the participants stated that creating fresh and interesting content is very important to increase the number of likes and followers. “…the only difficulty is that if you don’t post you don’t increase the number of likes…if you are not active for a week or two, you might reduce the hotel visibility on Facebook. The materials produced by the head quarter is not on daily basis.” (P1) Finally, three of five participants also highlighted the need to have dedicated personnel that is responsible for managing the Facebook account. The respondents also highlighted that the individual in charge of the Facebook account should have good communication skills. Having the ability to communicate in multi languages is additional value to hotel operators. “I think managing the company’s Facebook account requires a full-time worker, it is not something someone do it on part time basis. He/she should also have good communication skill, good in English and possible know other languages too…” (P3)

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4. Discussion Malaysia hotel used social media platform as one of its main interaction channels with their customers. The interaction usually started with sharing of marketing content on their social media platform. Usually base on these marketing contents, it will start new conversations or interactions between customers and hotel. Customers usually interact with each other either by sharing their joyful or bad experiences going to certain hotels or travel destinations. According [30], interesting content posted on social media can motivate customers to interact actively with the platform. Besides posting interesting marketing materials, the results also show that hotel also motivates their customer to interact with hotel’s social media platform by rewarding them with gifts. Gifts can act as a mechanism for hotel operators to encourage customers to be more active online [31]. Another approach used by Malaysia hotels to increase engagement within customer is to use celebrities or famous characters to share their experiences staying in their hotel. The hotel usually will post and highlight the stay of these people as hotel’s weekly or monthly highlight. Through this posting, usually it can create many likes and increase hotel’s online presence. Besides being used as an interaction channel, social media platform is also used as hotel virtual front office. Hotels are using social media as a platform to receive complaints, feedback and suggestions. Being able to respond quickly to these feedbacks is important. The negligence of the customers’ complaints and queries will lead to losing of customers and creating a negative impression about the hotel. Customers now can use social media to complain more directly, conveniently, and effectively than ever before, thus not responding quickly will lead the customer to viral the comments to another platform [32]. In term of challenges faced by hotel to increase the level of engagement is to have a dedicated staff who is knowledgeable and able to handle customer’s queries and comment professionally. The need to be bi-lingual is becoming a must as nowadays customers are coming from every corner of the world. Having individual who can communicate in many languages is a bonus for the hotels. Also, hotels should need to pay attention on how to provide fast and accurate information to customers. The customer is deciding based on the feedback received posted on social media. Being able to assist them in a timely manner might help increase the chances that customer will choose their hotel. Not only that, the result of this study also shows that coming out with innovative marketing materials, value for money offers and interesting advertisement are becoming one of the challenges for hotel operators to keep customers coming to their social media pages. One of the crucial findings of this study is that hotel in Malaysia is not having many ways of measuring their level of engagement with customers using social media. The research finding highlighted that majority of the respondents measure the level of engagement simply by observing contents from other hotel’s social media pages. Usually, they will benchmark their social media pages with other hotels by observing another post, the number of likes, and the number of comments and examine how other hotels engage with their customers. Hotel operators in Malaysia are ignoring other functionalities in social media (Facebook) which is very useful indicator to measure their level of engagement with the customer using Facebook. 5. Conclusion and Research Limitations As a conclusion for this study, hotel operators in Malaysia is not utilising the full potential of Facebook platform to increase their level of engagement with customers. Based on this research findings, the hotel operators have limited knowledge on how to measure their level of engagement with customers. Understanding how to measure the level of engagement can help Malaysian hotels to operate their social media platform more systematically and effectively. Thus, to increase the level of customer engagement, Malaysian hotels should give attention to the following dimensions of customer engagement when using Facebook platform. According to [10], customer engagement can be represented by five dimensions, they are: i) awareness, ii) attitude expression, iii) voicing of opinion, iv) advocacy and v) loyalty. Table 2 defined each of the dimension in details. Meanwhile, Table 3 shows how these dimensions is measured using Facebook’s functionalities. Knowing of which functionalities to focus can help hotel operators analyze their customer level of engagement better and more accurately.

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Table 2. Dimensions of Engagement and Its Definition Dimension

Definition

Awareness Attitude expression Voicing of opinion Advocacy Loyalty

Measures of consumer’s realization of the Facebook page. Measures of consumer’s acceptance regarding to content posted on the Facebook page. Measures of consumer’s feedback regarding to content posted on the Facebook page. Measures of consumer’s word-of-mouth activities or spread of content posted on the Facebook page. Measures the number of offline consumer involve with hotel’s activities. Table 3. Facebook’s Functionalities to Measure Engagement Dimensions Dimension

Facebook’s Functionality

Awareness

Number of page like

Attitude expression

Number of post like

Voicing of opinion

Number of post commented

Advocacy

Number of post shared

Loyalty

Number of check in by consumers

This study encourage further study is conducted to empirically analyse the level of engagement of Malaysian hotels by focusing on these dimensions and functionalities. This finding can help Malaysian hotels to overcome their lack of engagement with customers using Facebook platform. This analysis can help Malaysian hotel improve which dimensions of engagement they are weak and required further attention. The current study has some limitations. Firstly, this study focused solely on five-star hotels in Malaysia although there are still many other types of hotels available (e.g., four-star hotels, three-star hotels, bed and breakfast etc.). Future study can extend this study by conducting the same interview to another type of hotels. Perhaps it might give a different understanding of how others manage, utilise and coordinate the used of social media platform in their organisation. The second limitation of this study is related to the selection of the social media platform. This study only focuses on Facebook as social media platform when conducting the interview. Focusing on other types of social media platform might give a different view on how to use this platform to engage with customers. In general, it can be concluded that hotel in Malaysia is using social media platform as a marketing tool for their hotel. From the interview, hotel operators have a good idea on how to utilise social media to share their marketing content. Hotel operators also have their own innovative ways of attracting customer to visit their social media page. The research finding also indicates that hotel operator in Malaysia does not have a good idea on how to take advantage of social media platform functionalities to measure their level of engagement with customers. Currently, interaction with customers is observed manually by doing a simple comparison with other hotels. Finally, hotel operators in Malaysia are struggling to find suitable personnel to manage their social media platform. Choosing the right personnel is important as social media is becoming hotel virtual front office. Selecting a multilingual, good interpersonal skills and professional is the key characteristics to ensure hotel’s social media platform is managed effectively. References [1] Ekiz E, Khoo‐Lattimore C, and Memarzadeh F. Air the anger: investigating online complaints on luxury hotels. Journal of Hospitality and Tourism Technology 2012:32: 96 – 106. [2] Hashim KF, Mohd Yusof SA, and Rahayu, A. The influence of hedonic value on s-commerce adoption behavior. Advanced Science Letters 2015:215:1561-1565. [3] Popesku J. Social media as a tool of destination marketing organizations. Singidunum Journal of Applied Sciences, 2014:2:715-721. [4] Xiang Z, and Gretzel U. Role of social media in online travel information search. Tourism Management 2010:312:179-188. [5] Kim, HD, Lee I, and Lee CK. Building Web 2.0 enterprises: A study of small and medium enterprises in the United States. International Small Business Journal 2013:312:156-174. [6] Michaelidou N, Siamagka NT, and Christodoulides G. Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial Marketing Management 2011:407:1153-1159. [7] Ainin S, Parveen F, Moghavvemi S, Jaafar NI, and Mohd Shuib, NL. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management Data System 2015:1153:570-588.

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