THE RELATIONSHIP BETWEEN SOCIAL MEDIA AND CUSTOMER RETENTION IN NILAI, MALAYSIA

Abstract

This paper focuses on the impact of social media on customer retention. I measured social media by dividing it into three leading indicators: social presence, customer engagement, and media richness. In the era of Web 2.0, under the influence of enterprise globalization, enterprises' choice of marketing strategy has been updated continuously. Social media development helps enterprises reduce the distance between them and customer groups so that brands can retain customers by using the network. We selected customers from shopping malls near Nilai in Malaysia as the respondents.

I distributed the questionnaire through the network platform and collected 126 valid questionnaires. After data collection, the questionnaire data were analyzed by SPSS software. I mainly conducted descriptive data analysis, correlation analysis and multiple linear regression analysis. The results of data analysis show that among the three independent variables, only customer engagement and media richness have a significant effect on customer retention, on the contrary, social presence has no significant impact on customer retention in statistics.