Content marketing and customer loyalty of new generation banks in abia and imo states sjbss

Strategic Journal of Business and Social Science (SJBSS) Volume 2. Issue 2 Feb, 2019
Website: www.sj-bss.com Email: editor@sj-bss.com
Udo-Orji Chidinma: Content Marketing and Customer Loyalty of New Generation Banks.
pg. 1
Strategic Journal of Business and Social Science (SJBSS) www.sj-bss.com
CONTENT MARKETING AND CUSTOMER LOYALTY OF NEW GENERATION
BANKS IN ABIA AND IMO STATES
1Udo-Orji Chidinma., 2Prof. Anyanwu Ahamefule V., & Associate Prof. Umeh, C.I.
1, 2, 3, Department of Marketing Faculty of Business Administration Imo State University,
Owerri.
Abstract:
The study examined content marketing and customer loyalty in new generation banks in Abia and
Imo States. It was done to evaluate the relationship between content marketing and customer loyalty
of new generation banks. The study adopted the survey research design. The studied obtained data
from both primary and secondary sources and employed the purposive sampling technique was
adopted in the study The Cronbach Alpha Statistic was used to acquire a value of 0.70 as the
instrument reliability ratio. The study employed the descriptive statistic and correlation analysis for
Data Analysis and Hypothesis Testing. The researcher used SPSS Software for the analysis. The
findings show that there is a strong significant relationship between content marketing and customer
loyalty in the new generation banks. It was concluded that content marketing enhanced customer
loyalty. The study recommended that the management of banks should not develop lukewarm
attitudes to content marketing to avoid undesirable effects of such on patronage.
Keywords: Content marketing customer loyalty, customer retention, Patronage.
1.0 Introduction
Customer retention is the activity that a selling organization undertakes to reduce customer
defection. Successful customer retention starts with the first contact an organization has with a
customer and continues throughout the entire lifetime of the relationship. A company’s ability to
attract and retain new customers is not only related to its products or services but also strongly
related to the way it services its existing customers, the value the customers generate as a result of
utilizing the solutions, and the reputation it creates within and across the marketplace. It involves
exceeding the customers’ expectation so that they become addicted and loyal to the organization.
Customer retention refers to keeping an existing customer happy so that he/she continues to buy
an organization ’s product. Customer retention requires to focus on ensuring that the customer is
satisfied with the product quality and associated with the service provided by annn organization.
Here the stress is on product quality, the distribution function, and after-sales services. According

pg. 2
to Hawkins, Best, and Coney (2001), there are several customer retention strategies such as service
quality management, customer switching barriers, product innovation, content marketing,
information, sharing and budgeting for customer retention. Among these strategies, Steffs, Murthi,
Rao and Strijnev (2008) and Chaffey, et al. (2009) identify content marketing as a powerful tool
in customer retention strategies among financial institutions. Content marketing is a strategic
marketing approach focused on creating and distributing valuable, relevant, and consistent content
to attract and retain a clearly defined audience and ultimately, to drive profitable customer action.
In another perspective, Content marketing is a marketing technique of creating and distributing
relevant and valuable content to attract, acquire, and engage a clearly defined and understood target
audience – with the objective of driving profitable customer action (Rancati Elisa and Niccolo
Gordini 2014). Many organizations utilize different messages, programmes, fashions to engage
and retain their customers. This customer retention strategy is focused on the online customers to
ensure that they are addicted to the online presence and services of the organizations since the
website provides online information about the banks’ services and trend of economic activities
that are dynamic in Nigerian environment. In Nigeria, new generation banks are the most traded
sector in the Nigerian stock exchange market and contribute to the Gross Domestic Product of the
economy. For instance, Guaranty Trust Bank uses fashion and Ndani news link on their webpage
to keep its customers informed about the current trend in fashion and celebrity news. According
to Rancati Elisa and Niccolo Gordini (2014), there are three significant benefits for enterprises that
use content marketing: increased sales, cost, and savings and better loyal customers.
Customer loyalty in the context of banking means the desire on the part of the customer to continue
to do business with a particular financial institution which can result in emotional or behavioural
loyalty to a particular bank. Passionate Commitment to a bank could be demonstrated by
favourable perception, opinions and recommendations towards a particular financial institution
(Chaffey et al. 2009).

pg. 3
1.1 Statement of the Problem
The researcher has practically observed that some business organizations have lukewarm attitudes
to the development of these customer retention strategies that may trigger customer loyalty.
Enormous research gap exists as far as customer retention strategies and patronage of new
generation banks in Nigeria are concerned. Through exploratory research, the researcher further
observed that empirical studies do not exist as it relates to Nigerian new generation banks on the
link between content marketing and customer loyalty. Many organizations pay little or no attention
to content marketing and its imperative to customer loyalty in new generation banks.
In the age of internet madness, most banks especially the new generation banks do no longer
produce handbills that would explain who they are and what they can offer. These banks assume
that every customer can access their websites. The above is wrong assumption because it tends to
negate the basic principle of content marketing. If customers are not regularly briefed on the
developments in the banks' progress, it will be difficult to retain in them as loyal customers’.
1.2 Objective of the Study
The objective of this study is to investigate the relationship between content marketing and
customer loyalty.
1.3 Research Question
The associated research question is:
What is the relationship between content marketing and customer loyalty?
1.4 Research Hypothesis
The hypothesis is:
There is no significant relationship between content marketing and customer loyalty.
1.5 Scope and Significance of the Study
This study could be found in Marketing Management. It examines the relationship between
specific customer retention strategies such as content marketing and one of the indicators of

pg. 4
customer patronage which is customer loyalty. Accordingly, the researcher examined the
relationship between the two variables with a particular focus on the staff and management of new
generation banks located in Owerri and Umuahia. The study surveyed the top management and
staff of all functional units. The outcome of this research work will be relevant to the academians,
marketers and regulatory agencies in Nigeria and beyond.
2.1 Review of Related Literature
Content marketing is the marketing and business process of creating and distributing relevant and
valuable content to attract, acquire and engage a clearly defined and understood target audience
with the objective of driving profitable customer action (Rancati Elisa and Niccolo Gordini 2014).
For a bank to practice content marketing, it must have leaflets and booklets that describe its
services and matching benefits. Chaffey, Fiona, Meyer, and Johnston (2009) posit that content
marketing is marketing messages and activities aimed at managing customer additions and
amendment to organizational web pages. Content marketing is marketing that tries to attract
customers by distributing informational content potentially useful to the target audience rather than
advertising products and services in the traditional way. Content marketing is a strategic method
of delivering highly valuable and relevant information to a specific audience based on their needs,
pain points and desires. Content marketing is a long-term strategy that focuses on building a strong
relationship with a firm’s target audience by giving them high-quality content that is very relevant
to them consistently. The ultimate goal of content marketing is to grow or increase business
revenue. Social media is the most powerful type of content marketing in the digital world. Banks
use social media to strengthen its brand image.
2.1.1 The Concept of Customer Loyalty
A situation whereby a customer sticks to a particular product or firm over an extended period. For
this study, a loyal customer is one who has stayed with the bank for 5 or more years. Customer
loyalty in the context of banking means the desire on the part of the customer to continue to do
business with a particular financial institution which can result in emotional or behavioural loyalty
at a specific bank. Passionate Commitment to a bank could be demonstrated by favourable

pg. 5
perception, opinions, and recommendations towards a particular financial institution (Chaffey et
al. 2009). Behavioural loyalty is shown by a customer’s repeated response through the patronage
of positive response to a marketing campaign of a financial institution (Chaffey et al. 2009).
2.2 Theoretical Review
The researchers used anchored the study on the Diffusion of innovation is a theory that seeks to
explain how, why, and at what rate new ideas and technology spread. Everett Rogers, a Professor
of Communication Studies, published his book Diffusion of Innovation theory in 1962. Rogers
argues that diffusion is the process of communicating change over time among the participants in
a social system. The origins of the diffusion of innovation theory are varied and span multiple
disciplines.
Rogers proposes that four main elements influence the spread of a new idea: the innovation itself,
communication channels, time, and a social system. This process relies heavily on human capital.
The change must be widely adopted in order to self-sustain. Within the rate of adoption, there is a
point at which an innovation reaches critical mass. The categories of adopters are innovators, early
adopters, early majority, late majority, and laggards. Diffusion manifests itself in different ways
and is highly subject to the type of adopters and innovation-decision process. The criterion for the
adopter categorization is innovativeness, defined as the degree to which an individual adopts a
new idea. Also, Phelps and Bessant (2013) maintain that it is innovativeness that drives adopter
categorization.
2.3 Empirical Review
The study reviewed some works on content marketing and their effects on brand loyalty or
customer loyalty. There are many studies on the influence of content marketing on customer
loyalty. This work restricted the review of empirical study to studies that are in the financial sector
in Nigeria and beyond.
The prevalence of internet and e-commerce have led to the birth of content marketing (Rakic et al.
(2014), Koiso-Kanttila, 2004; Rowley, 2008) which focuses on the changes that technological

pg. 6
innovation has produced on creation, delivery and content management. According to Content
Marketing metrics: Theoretical aspects and Empirical evidence, in recent years, studies on Content
Marketing have significantly increased, nonetheless without reaching a clear and unique definition
of the concept and its effect on loyalty which are used for its measurement.
In Italy, a study by Rancati and Nicolo (2014) reviewed the content marketing metrics among 235
firms in Italy. They used Snowball metric by Laccobucci and Churchill (2014) to analyze the
degree of use and effectiveness of content marketing strategy and metrics on a sample of 235
Italian firms. They found out that content marketing in Italy could be used for customer acquisition
and customer retention/loyalty with the rate of 84% and 65 % respectively.
In a study in Ukraine, Gunelius, (2011) stated that customers are increasingly becoming part of
the process of creating value through frequent interactions with the firm (value co-creation).
Value co-creation leads on to overcome conventional models of communication because of the
technological process: internet, in particular, has accelerated the process of consumption
democratization, making the final customer more and more informed, and interconnected with the
firm and customers.
According to Rakic et al. (2014), firms use “digital Content marketing to support the
implementation of multiple business objectives, such as brand awareness, an attraction of
customers, along with creating the leads and maintaining of customer relationships/loyalty
Changsu, Eunhae, and Namchull (2010) reviewed an empirical investigation of digital content
characteristics of value and flowed in Asia. They affirmed that since the arrival of the internet into
almost every area of our lives, the use of digital content has led to an increasing interest in how
much value this content contributes to the information and communication industry.
(http://www.ertiqa.com). The result of their study showed a significant effect on the value flow of
digital content from all three categories, but the tide could be influenced by the musicality of design
and the entertainment value. When users highly rate the importance of digital content and report
good flow, the use of intensiveness of that content tends to increase.

pg. 7
The study of content marketing and its impact on the loyalty of customers were reviewed by
O'Toole (2003) in New Orlean banking industry. The study used an online survey to elicit the
response from online banking customers to understand how their online presence makes their
customers addicted to a specific bank. The paired T-test sample analysis was adopted to measure
the relationship between content marketing and customer loyalty in New Orleans. The result of
the study shows that online presence and content developer tool has a substantial effect on
customer loyalty. Also good content is the key to attracting customers to a website and retaining
the interest in achieving repeat visits.
Constantinescu (2014) conducted a comparative analysis of dentist websites content marketing
in Romania and the UK. Their paper aimed at identifying the core elements concerning content
marketing for dental websites. The sample consisted of 50 Romanian websites and 50 websites
from the United Kingdom (UK). They posit that the UK has the most efficient public oral health
care services. The research outcomes exclusively reflect the propensity for education and
prevention of UK sites and the propensity instead toward marketing communication of the
Romanian ones. The main findings include the following: the degree of content marketing
penetration in UK sites is 57%, while in Romanian is only 23%. The significant disparity
between the dental sites from the two countries is encountered in brand awareness content 17%
UK vs. 3% Romania and feedback 15% UK vs. 1% Romanian.
3.1 Research Methodology
The study adopted the survey research design as (Saunders, Lewis, and Thornhil 2008) asserts that
survey design is helps guide research decision which involves the collection of information by
administering the questionnaire and interviewing a sample of individuals. The descriptive analysis
was undertaken to ascertain and describe the demographic features of the respondents (Rogers and
Bourgie 2011). The total number of staff of new generation banks in Owerri and Umuahia
respectively is five hundred and fifty (550). The study utilized the five hundred and fifty (550) as
a sample of the respondents. The purposive sampling technique was adopted and a structured
questionnaire used for the generation of data. The degree of reliability of the survey was based on

pg. 8
a test re-test and Cronbach alpha statistic which gave us a value of 0.7 which falls within the
acceptable threshold as recommended by Nunnely (2009).
4.1 Data Analysis
Five hundred and fifty (550) copies of the questionnaire were administered to the respondents who
comprised the staff and management of the new generation banks in Abia and Imo states. The
returned and completed copies of the survey were four hundred and forty (440) which shows 80
percent return rate which is valid and acceptable as recommended by Lacobucci and Churchill
(2013). These respondents emerged from the respondents of Ecobank Nigeria, ZenithBank,
GTBank. Keystone Bank and Diamond Bank which amounted to a total of 440 staff located in all
these branches in Owerri and Umuahia.
The data were gathered using five (5) points linkert scale. The response rating/ranking are as
follows:
SA = Strongly agree - 5
A = Agree - 4
UN = Undecided - 3
D = Disagree - 2
SD = Strongly disagree - 1
An average response rate = 3 (5+4+3+2+1=15/5 = 3).

pg. 9
Note: For purposes of analysis and interpretation, strongly agree and agree have been collapsed
into agreement category while strongly disagree and disagree have been collapsed into
disagreement category.
Our benchmark is, therefore, 50% for significant response option.
4.2 Presenting the Descriptive statistic
Table 4.1.1: Descriptive statistics indicating respondents view on content marketing in Nigeria’s
commercial banks
S/
N
Item Questions SA A U D SD N Mean Standard
Dev.
1 Our bank has blogs
where they tell stories
of their bank products
and other events.
114
140
254
(57.7%)
60
(13.6
%)
51 75
126(28.6
%)
44
0
3.38 1.419
2 Our bank markets their
products via facebook,
whattsapp, twitter etc.,
109
190
299 (68%)
57
(13%
)
39 45
84
(19.1%)
44
0
3.63 1.234
3 Our bank conducts
online customer
satisfaction survey to
know if they are
satisfied with the
quality of services
offered.
82
130
212
(48.2%)
65
(14.8
%)
87
76
163
(37.1%)
44
0
3.12 1.385
4 Our bank has a Bi-
annual magazine that
shows their contents.
85
212
297
(67.5%)
50
(11.4
%)
44
49
93
(21.1%)
44
0
3.55 1.227

pg. 10
5 Our bank produces a
year book that details
their achievements for
the year.
128
140
286
(60.9%)
48
(10.9
%)
51
73
124
(28.2%)
44
0
3.45 1.436
Grand
Mean
3.43 1.309
Source: Fieldwork, 2018
The result in table 4.1.2.4 presents respondents’ view on content marketing in their banks. The
result reports a grand mean of 3.43 and a standard deviation of 1.309 indicating that there is
uncertainty from the respondents on the views regarding content marketing in their banks. The
result also shows that about 254 (57.7%) respondent agreed, 126 (28.6%) disagreed and 60
(13.6%) were uncertain of the view that their banks have blogs where they tell stories of their bank
products and other events accounting for a mean value of 3.37. 299 (68%) respondents agreed, 84
(19.1%) disagreed and 57 (13%) were uncertain of the fact that their banks market their products
via Facebook, WhatsApp, twitter, etc. reporting a mean value of 3.63. Majority of the respondents
were about 212 (48.2%) agreed, 163 (37.1%) disagreed, and 65 (14.8%)respondents were
uncertain of the view that their banks conduct online customer satisfaction survey to know if they
are satisfied with the quality of services offered with a mean valid of 3.12. The majority of the
respondents 297 (67.5%) agreed, 93 (21.1%) disagreed moreover, 50 (11.4%) were uncertain of
the fact that their banks have a bi-annual magazine that shows their contents showing a mean value
of 3.55, 268 (60.8%) respondents agreed, 124 (28.2%) disagreed moreover, 48 (10.9%) were
uncertain that their banks produce a yearbook that details their achievements for the year
accounting for a mean value of 3.45.

pg. 11
In determining the patronage of new generation banks in Abia and Imo States, questions 6-7 were
used to ascertain the respondents view regarding the company’s customer loyalty.
Table 4.1.2: Descriptive statistics indicating respondents view on customer loyalty in Nigeria’s
commercial bank.
S/
N
Item Questions SA A U D SD N Mean Standard
Dev.
6 Our customers are
always available and
interested in banking
with us at all times
99
204
303
(68.9%)
40
(9.09
%)
36
61
97 (22%)
44
0
3.55 1.302
7 For years now there has
been an increase in
customer loyalty.
70
109
179
(40.7%)
69
(15.7
%)
85
107
192
(43.6%)
44
0
2.89 1.429
Grand
Mean
3.22 1.319
Source: Fieldwork, 2018
The result in table 4.1.3.2 presents respondents’ view on their customer loyalty. The result reports
a grand mean of 3.22 and a standard deviation of 1.319 which indicate that the respondents are
uncertain of the views on customer loyalty. The majority of the respondents’ 303 (68.9%) agreed,
97 (22%) disagreed and 40 (9.09%) were uncertain of the view that their customers are always
available and interested in banking with their banks at all times showing a mean value of 3.55. The
result also reported that the majority of the respondents were about 192 (43.6%) disagreed, 179

pg. 12
(40.7%) agreed and 69 (15.7%) were uncertain that there had been an increase in customer loyalty
showing a mean value of 2.89.
4.3 Presenting Research Question 1:
Research Question 1: What is the relationship between content marketing and customer loyalty?
In order to determine if a relationship exists between content marketing and customer loyalty, a
correlation analysis operation was performed. The mean responses for questions 1- 5 in section B
were used for independent variable while the answers for questions 6 - 7 in section B were used
for dependent variable and were coded into the computer using SPSS package version 25 for the
data analysis.
Table 4.2.1: Summary of Correlation Analysis indicating the relationship between content
marketing and customer loyalty
Variables/Question
Item
No. Mean
Standard
Dev.
Correlation
Coefficient
Relationship
Content marketing 440 3.43 1.309
0.982
Very Strong and
Positive
InfluenceCustomer Loyalty 440 3.22 1.319
p-value: 0.000, Decision: Reject the null hypothesis
Table 4.2.1 presents the correlation analysis result between content marketing and customer
loyalty. The relationship between these variables is evident in a correlation coefficient of 0.982
indicating about 98.2% level of connection. A proper and positive relationship exists between
content marketing and customer loyalty. In confirming if the result is significant, hypothesis 1 was
tested and the hypothetical null statement stated as presented below

pg. 13
H.01: There is no significant relationship between content marketing and customer loyalty.
The result in table 4.2.1 also presented a p-value of 0.000 with a correlation coefficient of 0.982.
The p-value accounts to be less than 0.05 is the level of significance; therefore rejecting the null
hypothesis and accepting the alternative stating that there is a significant relationship between
content marketing and customer loyalty. Thus, a significant relationship exists between content
marketing and customer loyalty. This result has therefore proven that the existence of content
marketing in the studied banks has a positive and substantial relationship with the bank’s customer
loyalty.
4.4 Discussion of Finding
The findings of the study showed that there exists a significant relationship between content
marketing and customer loyalty.
5.1 Conclusion
The researcher concluded that content marketing improved customer loyalty of new generation
banks.
5.2 Recommendation
It was recommended that organizations should always embrace content marketing to enhance
customer loyalty.

pg. 14
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