Effectiveness of digital marketing strategies on performance of commercial banks in Kenya

In a competitive business environment, organizations try to reach their customers in the best \npossible way and this requires these firms to develop strategies that will create customer \nsatisfaction, value and loyalty. The ability of commercial bank operators to respond rapidly and \nappropriately to the environmental challenges depends largely on the information systems \nmanagement to reflect hopes, dreams and realities of real business situation. \nA substantial portion of business operator’s responsibility lies in his creative abilities driven by \nnew knowledge and information. Digital marketing strategies therefore, plays a crucial role in \nhelping commercial banks to design and deliver new products and services with unique features \nand redirecting and redesigning their business processes to meet current changes. The objective \nof the study was to determine the effectiveness of digital marketing strategies on the \nPerformance of commercial banks in Kenya. The research design was descriptive cross sectional \nsurvey. The population of the study comprised of all the 43 commercial banks operating in \nKenya. The study used primary data that were collected through self-administered \nquestionnaires. The data was analyzed by the use of descriptive statistics. The regression analysis \nwas used to assess the effects of digital marketing strategies and performance. The study found \nout that digital marketing platforms used by the commercial banks were mobile apps strategy, \nsocial media, website design/development, online advertising, display advertising and email \nmarketing. Marketing communication strategy was found to have enabled commercial banks to \ncommunicate with international customers, avail customers a 24 hour service platform, \navailability of online technical support, quick response of inquires, increase efficiency, reduce \ncost of communication, improve product and price information. The study found out that \ntransaction strategy enabled the commercial banks to customize promotion, flexible pricing, \nmaintain lower inventory level, lower cost of transaction, reduction on procurement and \nreduction errors. Digital marketing distribution enabled customers to track transactions, reduce \nwaiting time to receive product for digital product/ services, lower cost of delivery for digital \nproduct /services and reduce the number of customer service representatives. The study found \nout that digital marketing strategies improved the performance of commercial banks as it \nenhanced uptake of bank products by the consumer, lower costs, lower working capital, \nincreased revenue, increased customer base of the bank, increased market share, increased web \ntraffic, lower fixed capital, accelerate cash flows, reduce revenue volatility and reduce risk. \nThe regression analysis established that marketing communication strategy, transaction strategy \nand distribution strategy jointly influences the performance of commercial banks.