DIGITAL RELATIONSHIP MARKETING AND CUSTOMER LOYALTY AMONG SMES IN NIGERIA: THE MODERATING ROLE OF SOCIAL MEDIA ENGAGEMENT

Abstract

The shift to a more digital approach to business has changed the way Small and Medium Enterprises (SMEs) build and maintain customer relationships in today's very competitive business landscape. The study explored the effect of Digital Relationship Marketing on Customer Loyalty of Small and Medium Scale Enterprises (SMEs) in Nigeria with a specific focus on the moderating effect of Social Media Engagement. The descriptive survey research design was used and primary data from 250 customers of the SMEs operating in Lagos State, Nigeria were obtained through a structured questionnaire. The instrument was validated in the following ways: expert review and Exploratory Factor Analysis, the reliability analysis was confirmed using Cronbach’s Alpha coefficients ranging from 0.81 – 0.88. The data were analyzed by descriptive statistics, Pearson Product Moment Correlation, Multiple Regression Analysis and Hierarchical Regression Analysis. The results revealed that there is a positive and significant effect of Digital Relationship Marketing towards Customer Loyalty (β = 0.371, p < 0.05). The study also revealed a positive and significant correlation between Social Media Engagement and Customer Loyalty (r = 0.536, p < 0.05). In addition, Digital Relationship Marketing had significant interaction with Social Media Engagement (β = 0.244, p < 0.05) on the influence on Customer Loyalty. In Digital Relationship Marketing, the dimensions of Digital Communication Quality, Personalization and Online Trust were the best predictors of Customer Loyalty. Based on the findings, the study concludes that good digital relationship marketing and social media activity have a significant positive impact on customer loyalty and competitive advantage in the case of SMEs in Nigeria.