The impact of social media marketing on the banking sector: Research on capital city of Odisha

Abstract

The use of social media marketing in the banking sector is increasing rapidly. Different categories of banks are adopting social media as a key marketing tool. When effectively implemented, social media marketing can provide significant benefits to the banking industry. To reach a larger audience and ensure that potential clients can easily access relevant banking information, banks need to identify the most popular social networking platforms and strategically promote their services there. This study offers banks practical guidelines on how to utilize social media marketing and select the appropriate platforms. Data for the research were collected through structured surveys and personal interviews. A total of 250 surveys were distributed to bank customers and 18 semi-structured interviews were conducted with bank staff from various branches. The findings indicate that most respondents have a positive perception of social media marketing in the banking industry. Facebook, YouTube and Instagram emerged as the most effective platforms, particularly in Bhubaneswar, where they have the highest user base. Younger customers are more active on the internet compared to older individuals. Social media marketing plays a vital role in enhancing customer engagement and building relationships. The study also reveals that government banks pay relatively less attention to social media marketing, while private banks give importance to both traditional and digital strategies. Overall, a combination of social media marketing and traditional approaches appears to be the most effective strategy for banks in promoting their services.