Social media marketing and sales performance of selected small and medium enterprises in South-West Nigeria

Abstract

This study examined the effect of social media marketing on the success of selected small and medium-sized enterprises (SMEs) in the South-West region of Nigeria. The study used a descriptive survey approach. Small and medium-sized enterprises that are official registered in South-West Nigeria SME offices made up the study population. The sample size of 376 was arrived at with the help of the Raosoft Sample Size calculator. Data was collected from the owner/managers of the selected SMEs. using questionnaire as the primary data collection method. The questionnaire was tested for reliability, and the Cronbach alpha coefficient came in at 0.889. Both descriptive and inferential statistics (SPSS 24 and Smart PLS 3.3.3) were applied to the data set for analysis. With a 95% level of confidence, the PLS-SEM results showed that customization (β= 0.252, t= 1.970) and social interaction (β= 0.472, t= 4.229) are statistically significant, while branded entertainment (β = 0.017, t= 1.1101), customer engagement (β= 0.065, t= 0.493), and electronic word of mouth (β= 0.093, t=0.548) are not. The data analysis showed a positive relationship between social media marketing and sales growth in the Southwest of Nigeria. The study found that SMEs in Southwest Nigeria saw a significant increase in sales after implementing social media marketing strategies, and it is recommended that business owners should build stronger relationships with their customers and produce more engaging content on their social media channels geared towards their brand to improve their sales performance.