The impact of social media on marketing communications in commercial banks in Zimbabwe: The case of AGRIBANK

Abstract

The aim of this study was to evaluate the impact of social media in commercial banks in Zimbabwe through a case study of Agribank. The bank has been struggling to break even posting increasing losses in the midst of low business volumes and loss of market share. Although there is conclusive literature on the benefits of social media in commercial banking marketing communications in Zimbabwe, the literature relates to other countries. This motivated the conducting of this research, as a way of filling the gap left in the literature. The main objective of the study was to establish if Agriabnk uses social media in its marketing communications and their impact. Although the study was specifically focussed on Agribank, it would as well benefit the banking industry at large, the banking community and those interested in studying this area, (the academic community). The research was carried out using the semi-structured interview approach, where five senior Agribank managers selected on the basis of functional responsibilities were interviewed as well as four key customer representatives. This ensured that responses were at the highest possible levels. This study sought to understand the bank’s perceptions on social media hence a qualitative study. Therefore a qualitative research philosophy was adopted. The major findings were that although social media indeed positively impact on marketing communications in commercial banks, Agribank has no social media in its marketing communications mix and only relies on the traditional marketing communications tools. It was also apparent that the market has moved to modern communications tools. Inherently, there is a disconnection between the bank’s marketing communications strategies and customer expectation. The major inhibitors to the achievement of this goal were the organizational culture which fails to realize and appreciate the power of social media, and the financial resource limitations faced by the bank. In the end, it was recommended that the bank should adopt social media to stay in tune with its clients. This might improve its market share.