Customer services in the digital transformation: social media versus hotline channel performance

Due to the digital transformation online service strategies have gained prominence in practice as well as in the theory of service management. This study examines the efficacy of different types of service channels in customer complaint handling. The theoretical framework, developed using complaint handling and social media literature, is tested against data collected from two different channels (hotline and social media) of a German telecommunication service provider. We contribute to the understanding of firm’s multichannel distribution strategy in two ways: a) by conceptualizing and evaluating complaint handling quality across traditional and social media channels, and b) by testing the impact of complaint handling quality on key performance outcomes like customer loyalty, positive word-of-mouth, and cross-purchase intentions.