Branding, Social Media Engagement, and Customer Performance of Deposit Money Banks in Lagos State, Nigeria
Year: 2025
Type: article
Study design: Observational Study
Abstract: The increasingly competitive landscape of Nigeria’s financial sector has compelled Deposit Money Banks (DMBs) to strengthen their branding strategies to enhance customer acquisition, retention, and loyalty. Despite the acknowledged importance of branding in shaping customer perceptions, empirical evidence suggests that Nigerian DMBs have not effectively aligned their branding initiatives with measurable customer performance outcomes. Moreover, the rapid rise of fintech firms has disrupted traditional banking structures, underscoring the need for DMBs to leverage digital engagement particularly social media as a strategic branding and customer relationship management tool. This study investigates the effect of branding on customer loyalty among selected DMBs in Lagos State, Nigeria, and examines the moderating role of social media engagement in this relationship. Adopting a cross-sectional survey design, data were collected from 687 respondents using a structured questionnaire. The data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0. The results reveal that branding has a positive and statistically significant effect on customer loyalty (β = 0.462, t = 7.921, p < 0.05), indicating that strong brand equity fosters customer retention and commitment. Additionally, social media engagement significantly moderates the relationship between branding and customer loyalty (β = 0.287, t = 4.613, p < 0.05), suggesting that active digital interaction amplifies the positive influence of branding on customer attachment and satisfaction. Further assessment of the structural model confirms predictive relevance (Q² > 0) and robustness in explaining the interplay between branding, social media engagement, and customer performance. The study concludes that branding dimensions such as brand identity, image, positioning, and reputation are critical drivers of customer performance among DMBs in Lagos State. Furthermore, social media engagement serves as a vital moderating capability that enhances the effectiveness of branding strategies and strengthens customer loyalty. The study recommends that DMBs should strategically invest in social media engagement by maintaining active interactions with customers, promptly responding to inquiries, and sharing brand aligned content. Highlighting customer testimonials, success stories, and loyalty initiatives across digital platforms can significantly reinforce brand credibility, deepen customer trust, and sustain long-term loyalty in Nigeria’s competitive banking environment.
Authors: Abiodun B. Onamusi, Adeniyi I. Kadri, M. Trihudiyatmanto
Institutions: Lead City University, Universitas Sains Al-Qur'an
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7107971392
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