An Investigation into the Effectiveness of the Social Media Analytical Tools for Enhancing Customer Satisfaction: A Case Study of Indo Zambia Bank

Linda Wazili; Francis Mukosa

doi:10.59413/ajocs/v7.i2.50

Authors

Linda Wazili Graduate School of Business , University of Zambia Author
Francis Mukosa Graduate School of Business , University of Zambia Author

DOI:

https://doi.org/10.59413/ajocs/v7.i2.50

Keywords:

Banking Sector, Customer Satisfaction, Engagement, Information Reliability, Responsiveness, Social Media

Abstract

This study investigated the impact of social media engagement on customer satisfaction at Indo Zambia Bank in Lusaka, focusing on key service quality dimensions such as responsiveness, information reliability, engagement rate, efficiency, and ease of use. The research aimed to determine how these factors influenced customer perceptions and satisfaction levels in the digital banking landscape. A mixed-methods research approach was employed, combining quantitative data collected from a sample of 200 respondents through a structured questionnaire with qualitative insights from in-depth interviews with bank staff. The study utilized multiple regression analysis to assess the relationships between social media engagement variables and customer satisfaction. The findings revealed that responsiveness had a significant positive effect on customer satisfaction (β = 0.421, p < 0.01), indicating that timely responses to customer inquiries and complaints on social media platforms were crucial in shaping customer experiences. Information reliability also demonstrated a strong influence on satisfaction levels (β = 0.368, p < 0.01), emphasizing the importance of accurate, clear, and transparent communication in fostering customer trust. Additionally, engagement rate was found to be a significant predictor of customer satisfaction (β = 0.295, p < 0.05), suggesting that active and interactive social media strategies enhanced customer relationships and loyalty. Efficiency emerged as the strongest predictor (β = 1.122, p < 0.001), highlighting the necessity of streamlined processes for improving customer satisfaction. The overall model explained 91.6% (R² = 0.916) of the variance in customer satisfaction, confirming the substantial impact of social media engagement on banking customer experiences. The study concluded that Indo Zambia Bank’s social media presence is a vital tool for improving customer satisfaction by ensuring quick responsiveness, reliable information sharing, and increased engagement. However, limitations such as reliance on self-reported data and the exclusion of non-digital customers indicated the need for further research. Based on the findings, the study recommended that Indo Zambia Bank strengthen its digital communication strategies, invest in AI-driven customer support, and adopt a more interactive approach to social media marketing. These efforts would not only enhance customer satisfaction but also improve overall customer retention and brand loyalty in an increasingly digitalized banking environment.

Downloads

Download data is not yet available.

References

Adeola, O., & Evans, J. (2020). Social media and customer engagement in African banking. Digital Business in Africa: Social Media and Related Platforms, pp. 1-20. Springer.

Alalwan, A. A. (2018). Investigating the impact of social media advertising features on customer purchase intention. International Journal of Information Management, 42, pp. 65-77.

Brodie, R. J., Hollebeek, L. D., Jurić, B., & Ilić, A. (2021). Customer engagement in a social media context: Conceptualization and empirical evidence. European Journal of Marketing, 55(5), pp. 1246-1268.

Chanda, B., & Kunda, L. (2020). Leveraging WhatsApp for customer engagement in Zambia’s banking sector. African Journal of Digital Banking, 3(1), pp. 24-35.

Danho, M., Tomeh, K., & Danho, A. (2020). Strategic social media adoption in emerging markets: Evidence from African banks. Journal of Emerging Market Finance, 6(3), pp. 45-63.

Del Sarto, G., Bocchialini, L., Gai, F., & Ielasi, F. (2024). Digital transformation in banking: The role of social media. European Financial Review, 13(2), pp. 15-33.

Edeh, O. E., & Abbatty, O. (2020). Africa’s digital marketplace: The role of social media in customer engagement. In Digital Business in Africa: Social Media and Related Platforms (pp. 1-20). Springer.

Goi, C. L. (2014). Social media marketing in the Malaysian banking sector. International Journal of Digital Economics, 8(1), pp. 45-60.

Khurana, N., Kaur, H., & Chopra, S. (2019). Customer engagement strategies in digital banking. Journal of Service Marketing Research, 14(3), pp. 102-120.

Kietzmann, J., Paschen, J., & Treen, E. R. (2018). The role of social media in building customer relationships. Journal of Business Research, 102, pp. 273-284.

Kuchciak, I., & Wiktorowicz, J. (2021). The use of social media in banking: A comparative study. International Journal of Bank Marketing, 39(4), pp. 587-607.

Laksamana, P. (2018). Impact of social media marketing on purchase intention and brand loyalty: Evidence from Indonesia. International Review of Management and Marketing, 8(1), pp. 13-18.

Mahboub, R. (2018). Social media in Middle Eastern banking: A review. Journal of Islamic Financial Studies, 10(2), pp. 45-61.

Maharaj, R., Cowden, R., & Karodia, A. (2015). Leveraging social media for customer satisfaction in South African banks. South African Journal of Marketing, 22(3), pp. 78-93.

Majeed, T., Banda, E., & Phiri, C. (2022). The role of digital platforms in financial inclusion in Zambia. Zambian Journal of Business Innovation, 6(2), pp. 34-50.

Mogaji, E., Farinloye, T., & Aririguzoh, S. (2016). The role of social media in enhancing brand equity in Nigerian banks. Journal of African Financial Studies, 9(4), pp. 200-218.

Mudondo, C., & Govender, K. (2021). Social media and customer satisfaction in banking: Challenges and opportunities. African Journal of Marketing Management, 13(3), pp. 145-162.

Mumba, P., & Mulenga, F. (2020). The role of social media in building trust in Zambia’s banking industry. African Banking Review, 6(2), pp. 33-48.

Mwale, E., & Mwansa, M. (2021). Social media adoption in Zambia's banking sector: Opportunities and challenges. Zambian Journal of Business Research, 5(3), pp. 45-60.

Ngoma, J., & Sakala, M. (2021). Customer-centric social media strategies in Zambia’s banking sector. Journal of African Marketing Studies, 4(3), pp. 56-72.

Ogunnaike, O. O., & Akinmoladun, O. O. (2022). Antecedents and consequences of banking customers’ attitudes toward corporate social responsibility on social media. Behavioral Sciences, 12(12), p. 518.

Phiri, D., & Banda, T. (2019). Social media as a tool for financial inclusion in Zambia. Zambia Development Journal, 12(2), pp. 78-93.

Purohit, N. (2015). Social media as a promotional tool in emerging markets: Case studies from India and Africa. Global Journal of Digital Marketing, 7(3), pp. 89-105.

Rahman, Z., & Hussain, M. (2020). Social media and banking relationships: Insights from Exchange Theory. Global Business Review, 21(5), pp. 1179-1195.

Santini, F. D. O., Ladeira, W. J., Pinto, D. C., Herter, M. M., Sampaio, C. H., & Babin, B. J. (2020). Customer engagement in social media: A framework and meta-analysis. Journal of the Academy of Marketing Science, 48(6), pp. 1211-1228.

Singh, R., & Verma, P. (2022). Emotional drivers of customer engagement in digital banking: A review. Journal of Financial Marketing Insights, 19(4), pp. 78-90.

Thakur, R., & Alami, N. (2023). Co-creation in banking through social media: Evidence from the Middle East. International Journal of Banking and Digital Innovation, 12(3), pp. 112-129.

Twum, K. K., Kosiba, J. P. B., Hinson, R. E., Gabrah, A. Y. B., & Assabil, E. N. (2022). Determining mobile money service customer satisfaction and continuance usage through service quality. Journal of Financial Services Marketing, 28(1), pp. 30-42.