“IMPACT OF SOCIAL MEDIA MARKETING ON

CUSTOMER RETENTION”
Anshul Dhiman, Krish Kumar
Students of
Lovely Professional University

Abstract- The impact of social media marketing activities on brand equity (brand awareness
and brand image) and customer retention has been a subject of recent exploratory studies. These
studies have shown that social media marketing plays a significant role in predicting brand
equity and brand loyalty. The use of trendiness, interaction, word of mouth, customization, and
other factors has been found to positively affect brand awareness, brand image, and repurchase
intention. Social media marketing empowers businesses to generate perceived brand equity
activities and build brand awareness among consumers. The study emphasizes the importance of
entertainment and customization aspects of social media marketing for developing brand
awareness and nurturing repurchase intention.
Keywords: Social Media Marketing, Customer Retention, Brand Equity, Brand Awareness,
Brand Image, Repurchase Intention.
Research Type: The research discussed in the provided sources falls under exploratory studies
that aim to examine the effects of social media marketing activities on brand equity and customer
retention.

COMPONENTS OF THE CONCEPTUAL FRAMEWORK :The conceptual

framework includes factors such as trendiness, interaction, word of mouth, customization,
entertainment, commitment, satisfaction, trust, and relationship quality that influence brand
awareness, brand image, repurchase intention, and ultimately customer loyalty.

INTRODUCTION

In the digital age, social media has become more than just a communication tool—it's a dynamic
ecosystem where brands have the opportunity to authentically connect with their audience on a
personal level. This shift has redefined marketing practices, placing a premium on building brand
awareness and image through tailored social media strategies. Social media platforms have
democratized access to audiences, allowing businesses of all sizes to reach and engage with
consumers directly, regardless of geographical boundaries or marketing budgets.

By leveraging the power of social media, brands can craft narratives that resonate deeply with
their target audience, sparking conversations, and eliciting emotional responses. From visually
stunning Instagram posts to thought-provoking tweets, each piece of content serves as a
touchpoint for consumer engagement, driving brand recognition and recall. Moreover, the real-
time nature of social media enables brands to stay agile and responsive, adapting their messaging
to reflect current trends and consumer sentiment.

Beyond mere exposure, social media offers a platform for brands to cultivate a distinct brand
image—one that reflects their values, personality, and unique selling proposition. Through
consistent messaging and visual branding, businesses can establish a cohesive identity that sets
them apart from competitors and resonates with their audience on a deeper level. Additionally,
by actively engaging with consumers through comments, messages, and user-generated content,
brands can foster a sense of community and belonging, further strengthening brand loyalty and
advocacy.

Crucially, the impact of social media on brand equity extends beyond immediate metrics such as
likes and shares—it lays the groundwork for long-term customer relationships and retention. By
delivering value-added content, providing exceptional customer service, and fostering two-way
communication, brands can cultivate a loyal customer base that remains loyal even in the face of
competition.

In essence, social media marketing has transformed the marketing landscape, empowering
brands to forge meaningful connections with consumers and build lasting relationships. By
prioritizing brand awareness and image through strategic social media initiatives, businesses can
position themselves for sustained success in an increasingly digital world.

Research Gap: A common research gap identified in the existing literature on social media
marketing and customer retention is the lack of comprehensive studies focusing on the long-term
effects of specific social media strategies on customer loyalty and retention across various
industries. While many studies have explored the general impact of social media interactions or
marketing activities on customer behavior and retention, there is a need for more detailed
research that delves into the sustained effects of tailored social media strategies on customer
retention over extended periods. Additionally, there is a gap in understanding how different types
of social media content, engagement tactics, and platform-specific approaches influence
customer loyalty in diverse business contexts. This research gap highlights the opportunity for
future studies to investigate the nuanced relationships between specific social media practices
and long-term customer retention outcomes, providing valuable insights for businesses aiming to
optimize their digital marketing strategies for enhanced customer loyalty and retention.

Objectives of this research

 Focus on generating leads through diverse social media strategies.
 Emphasize creating engaging content for increased brand visibility.
 Enhance brand recognition and visibility through social media marketing efforts.
REVIEW OF LTERATURE
Gul, Shehzad, Gillani, and Awan (2022)- Explores the impact of social media marketing
activities on consumer intentions. The study utilizes variables such as interaction, trendiness,
customization, and word of mouth, employing a PLS-SEM methodology with a sample size of
353 respondents. The findings highlight the significance of SMMAs in shaping consumer
behavior and provide valuable insights for businesses aiming to enhance their social media
marketing strategies to drive customer engagement and loyalty in the digital age.

Mohammed T. Nuseir (2016)- Investigates the impact of online marketing strategies and digital
media on brand loyalty and customer retention. The variables examined include the use of
internet for product shortlisting, exposure to online marketing campaigns, and repurchasing
behavior. The research employs a primary quantitative approach with a sample size of 200
consumers, utilizing survey questionnaires for data collection and analysis through MS Excel
and SPSS software. The study concludes that online marketing strategies and digital media play
a significant role in enhancing brand loyalty and customer retention.

Joshua Adewale Adejuwon, (2022)- The study examines the impact of social media marketing
on customer retention in SMEs. The variables studied include customer engagement, social
interactions, customization, branded entertainment, and e-word of mouth. The methodology
employed a descriptive survey research design with a sample size of 439 respondents. The study
concludes that customer engagement, customization, and social interaction significantly
influence customer retention, emphasizing the importance of these factors for SMEs in
Southwest Nigeria
M.H., et al. (2023)- The study examines the relationship between social media marketing factors
(e.g., social media features, electronic word of mouth) and customer loyalty in online banking
services using the Technology Acceptance Model (TAM). The study employs a Structural
Equation Modeling (SEM) approach with a sample size of 329 online bank users in Amman,
Jordan. The findings suggest that social media features positively influence perceived usefulness,
highlighting the significance of social media marketing in enhancing customer loyalty in the
banking sector.
Yang et al. (2022)- The study examines the sustainable customer retention through social media
marketing activities, focusing on the impact of SMMA on brand awareness and brand image
among Chinese consumers. The study utilized the Stimulus-Organism-Response (SOR) model
and structural equation modeling (SEM) to analyze the relationship between social media
marketing activities and customer retention. With a sample size of over 400 respondents, the
research found that SMMA significantly influences brand awareness and brand image, leading to
increased repurchase intention of high-tech products.
Bhenu Artha et al. (2022)- The study explores the factors influencing customer retention,
emphasizing variables such as service marketing mix, customer satisfaction, and personnel
capability. The study employs a systematic literature review method, analyzing 19 articles to
identify key variables affecting customer retention. The conclusion highlights the significance of
customer experience in building sustainable competitive advantage and underlines the
importance of understanding and addressing factors that impact customer retention for
businesses.

Michelle Willis (2019)- The study examines the relationship between social media marketing
content and customer retention. The study utilizes a literature review approach to analyze various
variables such as customer engagement, social sharing, and customer relationships. The author
synthesizes existing research findings to draw conclusions on the impact of social media
marketing content on customer retention strategies. The findings of the literature review suggest
that customer engagement through social media marketing content plays a crucial role in
enhancing customer retention. Studies highlighted in the paper indicate that customer
participation in online brand communities leads to increased brand trust, loyalty, and the co-
creation of social media marketing content. Additionally, the research emphasizes the importance
of building strong relationships between firms and customers through social media interactions
to foster trust and loyalty .

Ama Achiaa Kankam Boadu- The author explores Customer Relationship Management (CRM)
and Customer Retention in the context of NSIA Insurance in Ghana. The study focuses on
variables such as customer trust, social bonds, commitment, and due care in relation to customer
loyalty. A structured questionnaire was utilized to collect data through face-to-face interviews.
The sample size and specific methodology are not explicitly mentioned in the summary. The
findings suggest that customer loyalty is influenced by various factors, highlighting the
importance of effective CRM strategies in enhancing customer retention in the insurance
industry.

Arcva Putra et al. (2022)- The authors investigated the impact of brand reputation on customer
loyalty, satisfaction, and commitment among TikTok users in Jakarta. Using a quantitative
approach and Structural Equation Modeling analysis, the research involved a sample size of 313
respondents. The study found that brand reputation positively influences customer commitment,
ultimately affecting customer retention, while loyalty and satisfaction did not directly impact
retention.

Glory S.E., Idorenyin U.E., Edim E.J., and Sarah E. (2021)-The authors examined the impact
of customer care, communication, trust-building, and service quality on customer retention in the
telecommunications context. The research utilized a survey research design with a sample size of
198 customers from MTN Nigeria Plc and Globacom Nigeria Plc in Calabar. Through multiple
linear regression analysis, the study found that customer care, communication, trust-building,
and service quality significantly influenced customer retention in the telecommunications sector.
The conclusions drawn from the study emphasized the importance of strengthening customer
care capabilities, improving communication channels, and building trust to enhance customer
retention in telecommunication firms.

Suhartoa, Wayan Ruspendi Junaedib, H.M. Muhdarc , Arif Firmansyahd,e and Saranaa -
The paper "Impact of Brand Image and Social Media on Customer Retention through Customer
Satisfaction at Kaliwatu Adventure" by the International Journal of Innovative Science and
Research Technology in August 2020 explores the relationship between brand image, social
media, customer satisfaction, and customer retention in the adventure tourism industry. The study
employs structural equation modeling to analyze the data, with a sample size of 100 respondents
from Kaliwatu Adventure in Malang, Indonesia. The research concludes that brand image and
social media significantly influence customer retention through customer satisfaction. Key
findings include the positive impact of brand image and social media on customer satisfaction,
ultimately leading to higher customer retention rates in the adventure tourism sector.
Jennifer Schönau- The literature review focuses on key variables such as consumer
empowerment, customer retention, social media, and social media marketing. Through a critical
review of 24 academic papers, 8 books, and 4 articles, the study explores the impact of social
media on customer retention. The research method includes a questionnaire to gather insights
from a sample size that is not specified. The findings suggest that companies should prioritize
customer engagement on platforms like Facebook, as user-generated content and online reviews
significantly influence purchasing decisions. The study emphasizes the importance of
understanding customer preferences and leveraging social media effectively to enhance customer
retention strategies.

Mehmet SAĞLAM and Soukaina El MONTASER (2019)- The authors investigated the
impact of customer relationship marketing on customer retention and acquisition in the cosmetics
industry. They focused on variables such as trust, commitment, communication, and conflict
handling, using a survey method with a sample size of 199 participants. The research highlighted
the positive relationships between these variables and customer retention, emphasizing the
importance of effective customer relationship management strategies in enhancing business
performance. Key findings included the significant impact of trust, commitment, communication,
and conflict handling on customer retention and acquisition, leading to the acceptance of all
hypotheses proposed in the study.

Mohammed T. Nuseir (2016)- The author investigates the impact of online marketing strategies
and digital media on brand loyalty and customer retention. The variables examined include
online marketing strategies, digital media usage, brand loyalty, and customer retention. The
research employed a quantitative approach with a sample size of 200 consumers, utilizing survey
questionnaires analyzed using MS Excel and SPSS software. The findings indicate a significant
relationship between internet usage for product shortlisting and purchasing decisions, with a
majority of participants engaging with online marketing campaigns. The study concludes that
integrating internet and digital services with retail networks is crucial for enhancing brand
loyalty and customer retention in the modern business landscape.

Suharto et al. (2022) -The study emphasizes on consumer loyalty in the e-commerce industry,
focusing on the influence of social media marketing and customer satisfaction. The research
utilized quantitative methods with a sample size of 222 e-commerce customers in Indonesia. The
variables examined were customer loyalty, customer satisfaction, and social media marketing.
The findings revealed significant effects of social media marketing on both customer satisfaction
and loyalty, emphasizing the importance of these factors in driving consumer behavior in e-
commerce. The study underscores the significance of social media marketing and customer
satisfaction in enhancing consumer loyalty in the e-commerce sector, providing valuable insights
for businesses aiming to improve customer retention and engagement.
Fathima Safwa Farook and Nalin Abeysekera (2016)- The study explores the relationship
between social media marketing and customer engagement. The study utilized variables such as
trust in information, satisfaction, and commitment, employing regression analysis and ANOVA
to analyze the data collected from a sample size of respondents. The findings indicated a
statistically significant positive correlation between social media marketing and customer
engagement. The study emphasizes the importance of understanding user motivations and
behaviors on social networking sites for designing effective organizational strategies.
Duffett and Wakeham- The study emphasizes on the impact of social media marketing
communications on attitudes among millennials in South Africa. The variables used in the
research included cognitive, affective, and behavioral attitudinal responses towards social media
marketing. The study employed a cross-sectional survey design with a sample size of over
15,000 millennial respondents. The findings indicated that social media was predominantly
accessed via mobile devices, with significant differences in attitudes based on usage
characteristics. The study concluded that businesses should consider the preferences and
behaviors of millennials when designing social media marketing strategies to effectively engage
this demographic in South Africa.

Mehedi Hasan and M. Sadiq Sohail - Study examines the impact of social media marketing on
consumer behavior, focusing on local and nonlocal brands. The study utilizes variables such as
brand awareness, interaction, emotional attachment, purchase intention, and brand loyalty,
employing a survey questionnaire to collect data from 314 respondents in Saudi Arabia. The
findings suggest that nonlocal brands are more popular among participants, with a significant
portion spending two to five hours daily on social media. The study underscores the importance
of social media in influencing consumer purchase decisions and highlights the need for
marketers to tailor their strategies based on brand localization.

Rodney Graeme Duffett (2017)- the study examined the influence of social media marketing on
Generation Z consumers in South Africa. Variables included social media usage, cognitive,
affective, and behavioral attitudes, and demographic factors. The study used a double sampling
method to select a sample of nearly 200 learners from each of the 70 colleges and high schools in
the Western Cape Province. Findings revealed a favorable impact of social media marketing on
young consumers' attitudes, with a declining trend over time. The study suggests that companies
should adapt their strategies based on these findings to effectively target the Generation Z cohort.

Southern African Institute of Management Scientists -Examines the influence of social media
aspects on customer satisfaction and retention in the banking sector. The study utilizes variables
such as benefits, clients' trust, content, customer satisfaction, and customer retention. Employing
a quantitative research design, the researchers collected data through a structured questionnaire
from a sample size of at least 125 banking clients and 30 bank managers in the Nelson Mandela
Metropole. Through statistical analyses including descriptive statistics, factor analysis,
Cronbach's Alpha, correlation coefficients, and multiple regression analysis, the study concludes
that while clients perceive banks' social media content as trustworthy and express high
satisfaction levels, there is a need for banks to focus on enhancing benefits to improve customer
retention.
Faraj Mazyed Faraj Aldaihani et al. (2020)- The authors investigated the relationship between
social CRM, customer empowerment, and customer retention in Islamic banks in Kuwait. The
study utilized a sample of 600 social media users as customers of Islamic banks, with 417 usable
responses. Through an online survey-based questionnaire and data analysis using IBM SPSS and
AMOS, the research confirmed that customer empowerment significantly mediated the effect of
social CRM on customer retention. The study concluded that customer empowerment plays a
crucial role in enhancing customer outcomes such as retention in the context of Islamic banks in
Kuwait.

Chantal Rootman (2016)- Explores the effects of social media interactions on customer
relationship management and firm performance. The study utilizes variables such as upselling,
terminations, service requests, usage, purchasing power, age, and gender, among others. The
method employed includes propensity score matching and analysis of a matched sample. With a
sample size of 334,111, the research concludes that social media interactions play a significant
role in reducing bias, improving customer survival rates, and ultimately enhancing firm
performance.

Jamil et al. (2022)- Explores the influence of social media marketing activities on consumer
intentions. The study utilizes variables such as interaction, trendiness, customization, and word
of mouth, employing a PLS-SEM methodology with a sample size of 353 respondents. The
findings highlight the significant impact of SMMAs on consumer behavior, emphasizing the
importance of personalized and engaging social media strategies in driving customer engagement
and loyalty in the digital age.

Malhotra (2010) - Explores the impact of social media on customer retention. The study utilizes
variables such as satisfaction, trust, and commitment to measure customer loyalty. The research
employs a quantitative approach with data collected through surveys and literature reviews. A
sample size of 110 respondents is used to analyze the relationship between social media and
customer retention. The study concludes that social media plays a significant role in enhancing
customer loyalty and ultimately improving customer retention rates.

RESEARCH METHODOLOGY

Research Design- The study utilized a cross-sectional design with data collected through an
online survey to analyze the effects of various social media marketing activities on brand equity
components like brand awareness and image.

Research Approach: The research approach involved using Partial Least Squares Structural
Equation Modelling (PLS-SEM) and Artificial Neural Network (ANN) analysis to assess the
impact of trendiness, interaction, word of mouth, customization, etc., on brand equity elements.

Data Collection Method: Data was collected through an online survey from 477 valid responses
to analyze the effects of different social media marketing activities on brand equity components
like brand awareness and image.

Procedure for Data Collection: The data collection process involved administering an online
survey to participants to gather responses related to their perceptions of various social media
marketing activities.

Data Analysis Method: The study employed Partial Least Squares Structural Equation
Modelling (PLS-SEM) and Artificial Neural Network (ANN) analysis to analyze the data
collected from the survey responses.

Validity and Reliability Clause: The study ensured validity by using established statistical
methods like PLS-SEM and ANN for data analysis to ensure reliable results regarding the impact
of social media marketing activities on brand equity components.

Sample Selection: The final analysis was performed on 477 valid responses collected through an
online survey to assess the effects of different social media marketing activities on brand equity
elements like brand awareness and image.