AFOLAYAN Anthony, Kehinde 1; ADEYEMI Emmanuel Adeyemi2; ISHOLA James Aransiola3 & ADEOTI Bunmi Sarah4
1, 3& 4Department of Business Administration,
Thomas Adewumi University, Oko, Kwara State, Nigeria
2Department of Business Management and Entrepreneurship,
Miva Open University, Abuja, Nigeria.
For correspondence, email: adewale@miva.university
Abstract
This study examines the effect of social media advertising on customer retention at SunTrust Microfinance Bank in Lagos State, Nigeria. Utilizing a descriptive research design, primary data were collected through a structured questionnaire distributed to 402 bank customers. The analysis was carried out using regression techniques, which revealed that social media advertising plays a significant role in influencing customer retention, explaining 87.1% (R² = 0.871) of the variation in retention rates. These findings highlighted the importance of social media advertising as a key driver of customer retention for microfinance banks. The study concludes that by prioritizing effective social media strategies, especially through the development of high-quality, targeted content, microfinance banks can markedly enhance their customer retention. Therefore, the study recommends that the management of the micro finance should embrace the use of data analytics to personalize social media advertising by tailoring advertisement content to reflect customers‘ preferences and behaviors to enhance its relevance and effect on retention. This study contributes to the understanding of digital marketing‘s role in the financial sector, emphasizing that well-executed social media campaigns are not just supplementary but essential for ensuring and maintaining customer retention in the competitive landscape of microfinance banking.
Keywords: Customer Retention, Microfinance Bank, Social Media Advertising, Strategic Marketing, Targeted Content
