SOCIAL MEDIA MARKETING ON CUSTOMERS SATISFACTION OF BANKS

Abstract

This thesis investigates the impact of social media marketing on customer satisfaction and retention in the banking sector, focusing on customers of commercial banks in Nepal. Through a quantitative approach analyzing descriptive data (mean, median, and standard deviation), the study examines the relationship between social media engagement and customer satisfaction. The sample includes 387 respondents from nine commercial banks in Kathmandu, comprising diverse demographic backgrounds and utilizing platforms like Facebook, Instagram, and mobile banking apps. Key findings reveal a positive correlation between social media attributes—information reliability, responsiveness, privacy, and connectivity—and customer satisfaction. Responsiveness emerges as a critical factor for current account holders, while savings account holders prioritize information reliability and privacy, and fixed deposit holders value all dimensions of social media performance. However, while information reliability and privacy are positively related to satisfaction, they are not statistically significant on their own. Demographic factors such as age and occupation significantly affect satisfaction levels, indicating socio-economic variables influence customer experiences. The study highlights the importance of responsiveness and connectivity in fostering customer satisfaction, urging banks to focus on these aspects to enhance service quality. Future research should consider a larger sample to strengthen generalizability beyond Kathmandu’s banking context.