Personalized digital marketing strategy, corporate image, and customer loyalty in the telecommunication sector in Kenya.

Abstract

Marketing evolved to incorporate various strategies that firms used to achieve their targets. One such strategy was the use of digital means of marketing. With the rise of personalized social media, machine learning, data analysis, and artificial intelligence influenced the shift to more personalized digital marketing strategies. Companies worldwide embraced personalized marketing activities to enhance customer loyalty and maintain their competitive edge. The telecommunication sector in Kenya was competitive, with key players driving the growth and innovation of the industry. Companies in this sector faced the issue of maintaining customer loyalty due to high competition and changing customer preferences. Consequently, they adopted more customer-centric marketing strategies to retain their customers. The research objective was to examine the influence of personalized digital marketing strategies on customer loyalty within the telecommunications sector in Kenya and the moderating effect of corporate image on this relationship. It aimed to determine the effects of personalized social media, in-app marketing, targeted ad marketing strategies, and the moderating influence of corporate image on customer loyalty in Kenya's telecommunications sector. Service-dominant logic, Uses and Gratification Theory, and the Technology Acceptance Model guided the research. The research employed an explanatory research design. The target population included individuals with mobile phones and customers of mobile phone companies in Kenya. The sample population size consisted of 384 respondents who were sampled randomly. A pilot study was conducted before the research to check the validity and reliability of the research instruments. The collected data were analyzed using SPSS 28.0. The study was conducted from September to October. The findings of the study revealed significant insights into the influence of personalized digital marketing strategies on customer loyalty within Kenya's telecommunications sector. The analysis demonstrated strong reliability for all constructs measured, with Cronbach's alpha values within the acceptable threshold, indicating valid research instruments. A response rate of 67% was achieved, providing a sufficient sample size for data analysis. Data services were identified as the most frequently used offerings, reflecting a strong demand for internet services among customers. Findings from the descriptive statistics showed a composite mean of 4.27 (SD = 0.899) for customer loyalty, indicating a generally positive perception of the telecom providers. Specific aspects such as continued usage intent and service level increases scored high, while first-choice preference had a lower mean of 3.87 (SD = 1.167). The inferential statistics highlighted significant correlations between each marketing strategy and customer loyalty. Regression analysis showed that personalized social media marketing had an R² of 0.575, meaning it explained 57.5% of the variance in customer loyalty, with a composite mean of 3.09 (SD = 0.991). In-app marketing had a stronger impact, with an R-value of 0.902 and R² of 0.814, explaining 81.4% of the variance in customer loyalty. Targeted ad marketing also showed a substantial positive effect, with an R of 0.867 and an R² of 0.751.Corporate image was examined as a moderating factor, showing a significant influence on the relationships between each marketing strategy and customer loyalty. Model 1, which did not include the moderator, had an R² of 0.877, while Model 2, with corporate image as a moderator, showed an increased R² of 0.889. This increase indicated that corporate image enhanced the explanatory power of the model. ANOVA results confirmed the significance of these relationships, with a high F-value of 611.8 (p < 0.001) in the combined model. The study’s findings underscore the effectiveness of personalized digital marketing strategies— namely personalized social media marketing, in-app marketing, and targeted ad marketing—in fostering customer loyalty within Kenya's telecommunications sector.