Digital Marketing and Its Impact on Enhancing Customer Loyalty: A Field Study on Private Yemeni Banks Operating in Sana'a Municipality

Abstract

This study aimed to investigate the digital marketing practices (social media marketing, mobile marketing, website marketing) and their impact on enhancing customer loyalty in private Yemeni banks operating in Sana’a municipality. I adopted the analytical descriptive correlational approach, and a questionnaire was developed to collect data from 384 respondents of customers of private Yemeni banks. The Random sampling method was considered, and the statistical package for social sciences (SPSS) was employed to analyze the collected data. Responses’ frequencies and means calculated, ANOVA and regression were used in analyzing the data. The results of the study revealed that there is a significant impact of digital marketing on customer loyalty in banks under study. The results also showed that there is a high level of achievement of customer loyalty in surveyed banks through behavioral loyalty, while it was found low through attitudinal loyalty. Moreover, a high level of achievement of digital marketing practices was also observed in banks under study regarding mobile marketing, social media marketing, and lower in website marketing. Gender of surveyed customers, however, has no effect on making differences between customers regarding achieving customer loyalty; in contrast, educational qualification and the dealing period of surveyed customers have an effect on making differences between customers regarding achieving customer loyalty on different levels. Based on the findings, the study recommends banks provide higher attention on enhancing attitudinal loyalty levels. Moreover, banks should enhance the website marketing function to mobilize its function in order to attain banks’ objectives in general and to achieve higher customer loyalty in particular.