TITLE:
Influence of Social Media Marketing on Profitability of Commercial Banks in Mwanza City, Tanzania
AUTHORS:
Consolata Constantine, Sylvester Jotta, Ngozi Tibuhinda
KEYWORDS:
Social Media, Marketing, Profitability, Commercial Banks
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.12 No.12,
December
23,
2024
ABSTRACT: This study aimed at assessing the influence of social media marketing on profitability of commercial banks in Mwanza city, Tanzania. Also, the study employed Performance Theory which guided the study. The methodology for inquiry was a positivist philosophy and a quantitative approach to systematic analysis of the relationship between digital marketing and performance of commercial banks, focusing on 132 employees selected from NMB branches in Mwanza City. Data was collected through structured questionnaires, with a high Cronbach Alpha coefficient of 0.8 which was confirming the reliability of the instruments. The data was analyzed by using SPSS 20th version for descriptive and inferential statistics, including regression analysis. The results demonstrate a strong positive correlation between social media marketing (SMM) and the performance of commercial banks, with high mean scores indicating customer engagement, satisfaction, and loyalty resulting from effective marketing strategies to reach their customers. Statistical analyses confirm that SMM significantly influences banking performance, highlighting its critical role in enhancing brand visibility and fostering customer relationships. Overall, the findings emphasized that the essential role of SMM in driving profitability and competitive advantage for commercial banks in the digital age. The study recommends that banks should implement a comprehensive digital marketing strategy that includes influencer partnerships and active engagement which effectively enhance customer loyalty and business performance.