E-Commerce Marketing Strategies Adopted By Social Enterprises and Customer Retention at the Bottom of the Pyramid in Nairobi County, Kenya

Abstract

The impact of e-commerce marketing strategies on customer retention has become a more prominent issue for investigation. Over the years e-commerce marketing has become the preferred way of conducting and promoting business in order to cut expenses, and increase the business profitability. The study sought to examine e-commerce marketing strategies adopted by social enterprises and customer retention at the bottom of the pyramid in Nairobi County, Kenya. The specific objectives were to establish e-commerce marketing strategies adopted by social enterprises at the bottom of pyramid in Nairobi County and to determine the effects of e-commerce marketing strategies by social enterprises on customer retention at the bottom of pyramid in Nairobi County. This research adopted descriptive survey design. A census was adopted which comprised of 11 social enterprises serving the bottom of the pyramid in Nairobi County. Quantitative data was analysed using descriptive statistics such as mean, standard deviation and chi-square was used to find the relationship between the variable. Qualitative data was analysed using content analysis and presented in prose form. The findings also revealed studied companies used SMS, social media and electronic catalogue technology to engage with their customers in that order. There has been increase in early repeat rate and average basket size in the last two years (2015 and 2016) implying that customers are retained. The chi-square results indicated there is relationship between e-marketing strategies adopted by social enterprises at the bottom of pyramid and customer retention. The study concluded that e-commerce marketing strategies adopted by studied social enterprises had positive effect on customer retention. The study recommended that companies serving the bottom of pyramid market should continually embrace the electronic marketing practices especially electronic and social media marketing which have enhanced feedback system and can act as a buying portal. Lastly, the enterprise should develop loyalty programs within their e-marketing platforms so as achieve customer loyalty hence retention