Conference Paper

THE EFFECT OF SOCIAL MEDIA MARKETING ON CUSTOMER RETENTION: A STUDY OF KONGA CUSTOMER IN SANGO-OTA, OGUN STATE.

This study examined the effect of social media marketing on customer retention using a study of Konga Nigeria Plc. The specific objectives of this study were to determine the effect of customization, entertainment, customer engagement and informativeness on customer retention. The study adopted a survey research design and collected data from respondents using a structured questionnaire. The population of this study was Konga customers of its Sango-ota outlet, Ogun state, who are followers of their various social media platforms (Facebook, Instagram and Twitter specifically). This study used Godden (2004) sample size determinationformulato ascertain the sample size of 132 while simple random sampling techniquewas adopted for the study. The data collected were analyzed using descriptive tables and percentile, while regression analysis was used to test the hypotheses with the aid of SPSSv20. The findings revealed that customization (coefficients, t-value and sig.) 0.064, 0.254 and 3.778 respectively, entertainment (coefficients, t-value and sig.) 0.91, -0.95 and -1.93 respectively, customer engagement (coefficients, t-value and sig.) 0.103, 0.125 and 1.498 respectively, informativeness (coefficients, t-value and sig.) 0.080, 0.557 and 7.045. Therefore, findings of this study showed that customization, customer engagement and informativeness have significant effect on customer retention with a (sig. level<0.005) while entertainment was not significant with p-value of 0.235 which is >0.005.The study recommended that Konga Nigeria should use customer segmentation to identify groups that respond most positively to customization. Digital tools, such as AI and machine learning should also be adopted in scaling customization efforts.