Impact of Covid-19 on Social Media Marketing Adoption and Customer Retention

Abstract

Research Background: Besides the adverse effect of the COVID-19 pandemic on businesses, it has also brought about a shift in business operations. For instance, a shift has been reported in making purchases from the regular face to face interaction to online purchases, especially during movement restrictions and lockdown. This suggests that the pandemic will push several SMEs into adopting digital platforms like social media marketing to reach out to their customers. Exploring how social media markting can be used to achieve customer retention in the hospitality industry becomes very important in the wake of the COVID-19 pandemic that has cause significant changes in the ways business is now done. Hence, this study seeks to provide empirical evidence on this phenomenon.

Research Purpose: This study examined how restaurants can adopt or utilise Social Media Marketing (SMM) to its best effect in a post-covid world.

Research Questions: This study answers the following research questions:

i. How does COVID-19 impact Social Media Marketing adoption among restaurants operators in southwest Nigeria?

ii. How do Restaurant operators use social Media Marketing Strategies for customer retention?

iii. What are the factors influencing the adoption of Social Media Marketing among restaurants operators in Southwest Nigeria?

Method: The study gathered primary data through a cross-sectional survey of restaurants operating in the South-west region of Nigeria using an online survey. The survey was conducted among one hundred (100) owners/managers of restaurants in the study area. The study performed both descriptive and inferential analysis to address the specific research objectives and make appropriate recommendations.

Conclusion: The study showed WhatsApp and Facebook were the two most commonly used social media platforms among the restaurant operators. Also, social media marketing strategies (promotion and advertisement) were significantly associated with customer retention. Promotion offer was the most commonly used marketing strategy, while firm characteristics was the most important factor influencing the adoption of social media marketing. Overall, the study found perceived usefulness to be significantly associated with social media marketing adoption. However, COVID-19 had no significant impact on the adoption of social media marketing.