Effect of Social Media Marketing On Consumer Loyalty in the Banking Industry: A Case of Equity Bank

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree Masters in Business Administration (MBA)The purpose of this study was to evaluate the effectiveness of social media marketing on customer loyalty at Equity Bank in Kenya. This study was guided by the following objectives; to determine the effects of social media tool used on consumer’s brand loyalty, to determine the elements consumers look for in social media marketing message and to determine how social media can be used as a means to increase consumer loyalty to brand. The study employed a descriptive survey design. Purposive and simple random sampling was adapted to select the 138 respondents although only 94 responded. The data collected was both quantitative and qualitative in nature. The data was analysed using descriptive statistics by employing Statistical Package for Social Scientists and presented using frequencies tables, bar graphs and tables. On analysis of the first objective it was established that majority use social media site to get answers, and use of brand positioning in social media has helped many remember the brand. It was also established that social media site has enabled many users create a strong bond with equity bank as well as exchange information with other online users. Use social media sites to regularly has enabled many respondents to engage with online friends and meet new people. Social media site has also influenced brand awareness, communication with customers. Online reviews have also affected perception on product quality. On analysis of the second objective majority of the respondents strongly agreed that they use Equity social media site because it enables them to exchange information with other online users along common areas of interest e.g. through online chats, it was also established that and equity bank promotes its products and services online. In addition, respondents agreed that they did not like using Equity social networking site because it was not easy to interact with, the message is not clear and understandable, and they get recommendations/views from friends first before buying or using any product or services. On analysis of the third objective it was established that majority of the respondents strongly agreed that Equity offers timely feedback on their social media site, Equity also offers transparency on their social media site and it was easy to access equity social media. Many also claimed to use Equity banks social media site because they post effective informative. It was also noted that the bank has an online reward program, and many preferred online friends to equity social media site because they offer their online freebies/discounts. Many use of equity’s social media has enabled many create a social network, although information gotten from equity’s social media site is trustworthy. The study concluded that Social media site offer valid information to consumers especially from an organization site this has also aided in brand positioning in social media that has helped respondents remember the brand. Social media site help create a strong bond with organizations and facilitate exchange of information with other online users. Equity bank use social media site to exchange information with other online users along common areas of interest. In addition, recommendations/views from friend forms the first area of reference before buying or using any product or services. Social media sites are timely, transparency and easy to access. Many organizations also use social media site because they post effective informative and use of equity’s social media has enabled respondents create a social network. It was recommended that Institutions need to continuously use Social media site to offer valid information to consumers especially from an organization site. This should be used to create a strong bond with organizations. Equity bank need to ensure that the information available is relevant so as to facilitate exchange with other online users. The bank also need to ensure that the site is easy to navigate and download content, as well as prompt feedback to the consumer. The bank need to continuously utilize social media sites due to their timeliness, transparency and ease of access. The firm also needs to utilize social media site to post effective information and use of equity’s social media has enabled respondents to create a social network so as to attract more attention from other social media users. For Further Studies it was recommended that there is a need to expound this study to other banks so as to be able to generalize the findings