The Impact of Digital Marketing on Customer Engagement: Retail Sector

This report investigates the influence of digital marketing, with a specific emphasis on social media marketing, on customer engagement within the retail sector. The research begins with an abstract, followed by an introduction that establishes the background, rationale, and objectives of the study. A comprehensive literature review synthesizes existing knowledge on digital marketing, brand awareness, and customer engagement, drawing from various secondary sources like articles, journals, and books. The methodology section outlines the research approach, which employs a quantitative method using a questionnaire with a sample size of 50, analyzed through statistical methods. The findings and interpretation section presents and analyzes the data collected. The discussion section connects the findings with the literature review. The report concludes with a summary of findings, recommendations for improvement, and a list of references and an appendix. The study aims to determine the types of digital marketing used by retail, assess the significance of social media marketing, explore strategies for enhancing customer engagement, and identify challenges faced by the industry. The report provides a detailed analysis of the UK retail sector, highlighting key facts and statistics to contextualize the research.

Digital marketing
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ABSTRACT
This present research is based on impact of social media marketing as a type of digital
marketing in increasing customer engagement towards the brand. It is use of the social media
website and also networks to market products and services of an organisation. This is process
about developing the tailored content for social media platform in order to drive the engagement
and also promote business. Conducting this investigation helps in providing the understanding
about the social media in marketing and its role in engaging customers in better manner. Aim of
this research is "To identify the impact of social media marketing as a type of digital marketing
in increasing customer engagement towards the brand ". A study on retail industry. In this
research, literature review has been conducted by consisting the secondary sources to attain
research objectives. There has been considered the secondary objectives such as internet sources,
articles, journals, books and others. There has been identified the different types of digital
marketing used by retail sector. There has been determine the significance of social media
marketing as a type of digital marketing for retail industry. Research methodology is main part of
the research as this is helpful in providing the ways to collect and analyse information. There has
been research onion considered by using different layers and it was developed through Saunders
et. al. in year 2007. This research is based on the quantitative method in which data has been
collected statistically and reliable. To collect the information, there has been primary method of
data collection considered as this helps in gathering the new and reliable information regarding
the particular area. There has been considered the 50 sample size chosen by using the random
sampling method. Discussion has been conducted on the basis of literature review that meet with
research objectives. The conclusion has been developed on the basis of whole research and
recommendations are related to provide some suggestions to make improvement in the research
and business for future purpose.
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Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................9
RESEARCH METHODOLOGY...................................................................................................19
RESEARCH FINDINGS AND INTERPRETATION..................................................................27
DISCUSSION................................................................................................................................40
CONCLUSION AND RECOMMENDATIONS..........................................................................45
REFERENCES..............................................................................................................................47
APPENDIX....................................................................................................................................50
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INTRODUCTION
Background of the research
Digital marketing is also called online marketing that help business organisation in
promoting of its brand effectively. Digital marketing is a better use of mobile device, internet,
search engines, social media and many other channels to reach potential and new customers. This
type of marketing facilitates business organisations in attracting of larger customer base through
search platforms, content marketing, email, social media and many more (Dolega, Rowe and
Branagan, 2021). Digital marketing targets a particular segment of customers in accordance to
the brand. According to the current dissertation, social media marketing as an important type of
digital marketing is used for increasing customer engagement towards the brand. Social media
marketing introduces to the effective use of social network and social media to market or
promote a company’s services and products.
Customer engagement refers to the emotional connection between a brand and a
customer. Customer engagement monitors the relationship between company and customers.
This is essential for encouraging customer satisfaction, customer loyalty and increasing brand
awareness (Black, Jeseo and Vincent, 2021). Highly engaged customers are more important part
of business success and growth because they purchase more and promote more as well as
demonstrate more loyalty. This is highly essential for a business organisation in increasing of
sales and improving brand image. This turn to impact in increasing profitability and sales.
Social media marketing provides an effective way for engaging existing customers and
reaching new ones towards product, brand or service. In simple word, social media marketing is
the better use of social media platforms and network to connect with audience to build brand,
drive website traffic and increase sales. There are number of social media platforms such as
Facebook, Twitter, Instagram, YouTube, Snapchat, Pinterest and LinkedIn. These are some
platforms that are essential for company in promoting of its brand in market. There are various
advantages or benefits of social media marketing for an organisation such as brand awareness,
brand loyalty, customer insights, customer experience, lead generation and sales etc. All these
are biggest advantages of social media marketing that helps company in improvement of its
brand awareness and growth (Gaffar and et. al., 2021). Therefore, social media marketing is
important in increasing customer engagement towards the brand.
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For this dissertation, retail industry is a chosen study. Retail is the process of selling
products or services to the customers via multiple channels of distribution with purpose of
earning profit. There are 10 key facts and stats regarding the UK retail sector. These are
mentioned as below in tabular form:
10 key facts and stats Facts
Total value of UK retail sales in 2020 £403
Billion
Proportion of consumer spending that goes through retail 1/3
People employed in UK retail in 2020 2.9 million
Proportion of retail sales made online in 2020 28%
Growth in UK retail sales in 2020 2.2%
Total number of VAT-registered retailers in the UK in 2019 208,760
Total number of retail outlets in the UK in 2019 306,655
Amount retail generates of total GDP (GVA) 5%
Average annual growth of online retail sales in 2020 45%
Online sales have risen three fold in the last 10 years 324%
From the above mentioned table, it has been interpreted that, there are some key and facts
that define retail industry is the main industry for United Kingdom. Along with this, there are
number of clothing online and supermarkets in United Kingdom. Main retailers are H&M, Marks
& Spencer, Amazon, Asda etc. These are main retailers of United Kingdom that serve their
services in all over the world. In year 2020, total value of retail sales of UK is around £403
Billion that is high and help in improvement of economic growth of country. Employment in UK
is approximately 2.9 million that is beneficial in improvement of living standard of people (UK
RETAIL STATS & FACTS. 2021). Therefore, retail industry in United Kingdom is more
successful that are essential for the growth and success of country or an individual. It is an
effective opportunity for an organisation to setup their business within retail industry.
Rationale of the research
Main rationale behind conducting of this research is to identifying the impact of social
media marketing as a type of digital marketing in improving customer engagement towards the
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brand. This is a main reason behind doing of this dissertation. This research is important and
significant at persona as well as professional level (Marques, Casais and Camilleri, 2021). At
personal level, present study facilitate investigator in enhancing of its different types of research
skills that are time management, decision making, presentation and many more. All these are
main skills that are essential for investigator in completion of each activity of dissertation in
systematic and successful manner. At professional level, present investigation facilitate
investigator or an individual in searching of job within retail industry. Therefore, present
investigation is important at personal and professional level by increasing their understanding
about the effectiveness of social media marketing as a main type of digital marketing in
increasing customer engagement.
Research aims and objectives
A research aim expresses the aspiration or an intention of the research study. Aim is
important part of dissertation because entire dissertation is based on them. Aim of the
dissertation is developed according to the title. This is important for researcher in achievement of
each objective successfully. Research objective is essential for investigator that developed
according to the research aim (Shahbaznezhad, Dolan and Rashidirad, 2021). Research aim
includes two variables that are dependent and independent. According to the current dissertation,
increasing customer base towards the brand is a dependent variable that is dependent on social
media marketing, it means social media marketing is an independent variable. Therefore,
research aim and objectives of the current research are mentioned as below:
Research aim:
"To identify the impact of social media marketing as a type of digital marketing in
increasing customer engagement towards the brand ". A study on retail industry
Research Objectives:
 To determine the types of digital marketing used by retail sector.
 To identify the significance of social media marketing as a type of digital marketing for
retail industry.
 To explore ways for increasing customer engagement towards the brand within retail
industry.
 To examine the challenges faced by retail industry while increasing of customer
engagement.
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Research questions
 What are the main types of digital marketing used by retail sector?
 What is the significance of social media marketing as a type of digital marketing for retail
industry?
 What are the effective ways for increasing customer engagement towards the brand
within retail industry?
 What are the major challenges faced by retail industry while increasing customer
engagement?
Structure of the dissertation:
This is a part of dissertation that includes some chapters or activities. These are important
for researcher in completion of full dissertation in systematic and successful manner. These
chapters are explained as below:
 Introduction: This is a first activity that includes different number of sub-activities such
as background of the research, aim and objectives of the study etc.
 Literature Review: This part of dissertation is based on secondary information that will
be gathered from secondary sources such as articles, magazines, books and many others.
All these are useful sources of collecting secondary data about the topic.
 Methodology: This is an important part of dissertation that helps investigator in
gathering and evaluating of data from effective type of methodology. There are different
types of methodologies such as positivism philosophy, deductive approach, quantitative
research, questionnaire and many others (Yoganathan, Osburg and Bartikowski, 2021).
All these are major types of methodologies used by researcher for collecting accurate
data regarding the impact of social media marketing as a type of digital marketing in
increasing customer base towards the brand.
 Discussion of results/analysis and findings: This section of dissertation facilitate
investigator in analysing of gathered information effectively. According to the existing
topic, quantitative data will be gathered from questionnaire. In order to evaluate
quantitative data, frequency distribution analysis will be applied as an analytical
technique.
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 Conclusion: This is a main part of dissertation that includes information about the entire
chapters in short and clear manner. This chapter facilitate investigator in achievement of
each objective and aim in successful manner.
 Recommendations: This part of dissertation includes some suggestions regarding the
improvement within research topic. This is essential for investigator in achieving all
objectives successfully.
Summary of the chapter
Introduction chapter is an important chapter of the dissertation because it included
different activities in systematic manner. These activities are research aim, objectives, questions,
background and rationale of the research etc. All these activities helped investigator in
conducting of next activity i.e. literature review is systematic and successful manner.
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LITERATURE REVIEW
Literature review is determined as primary chapter of dissertation because it aids assistance
in gathering secondary data as well as information regarding topic. There is different kind of
sources of gathering secondary data and information involving articles, magazine publication,
research, books as well as so on. In assistance of this, all these kinds of resources aid assistance
to investigator in collecting secondary data as well as information in respect of digital marketing
during particular phase of time period. In addition to this, the literature review is determined as a
survey, scholar, article as well as other sources that are relevant to specific issue area related to
research theory and description regarding critical assessment regarding work in context of
research problem that is being included in investigation. Therefore, it is necessary to prepare
effective literature review that is helpful in collecting secondary data and information in respect
of topic. Therefore, there are different types of sources used for collecting information in order to
conduct research in proper way.
Brand Awareness- The meaning of term brand awareness comprises of marketing term that
describes the degree of consumer recognition of a product by its name. Creating brand awareness
is a key step in promoting a new product or reviving an older brand. Ideally, awareness of the
brand may include the qualities that distinguish the product from its competition.
Social Media Marketing- Social media marketing basically comprises of the use of social media
platforms and websites to promote a product or service. Most social media platforms have built-
in data analytics tools, enabling companies to track the progress, success, and engagement of ad
campaigns.
It has been analysed that use of social media marketing supports creation of the brand
awareness by the way of leading improved communication and more efficient interaction with
customers that set out an improved brand position of firm.
To determine the types of digital marketing strategy used by retail sector
As per views of Aranas. M. (2019), the changing time there are different digital marketing
strategies that are used by retail organisations. Retail organisations are willing to follow some of
the respective latest stands for the purpose of understanding the customer journey through
various multiple touch points. Organisations are working towards improving in store experiences
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through digital marketing strategies. In the present scenario, customers are willing to experience
a convenient and fast-paced shopping experience that can offer them choice and value. This
expectation is driven by shoppers going online so that they are able to find the products that they
need. For this purpose, retail organisations are combining the online strategy with physical store
campaigns.
Another digital marketing strategy is based on using cross device targeting and analytics for
development of unified shopping experiences. Many retail brands are presently using data and
analytics for the purpose of understanding the customer purchasing behaviour. The presence of
multiple communication channels customer sharing and experiences from various devices are
overwhelming organisations to collect the lead from this data. Cross device targeting is helping
organisations to track the behaviour of customers across multiple devices. It helps in
understanding of the customers through different online channels so that more accurate customer
profile can be created.
Building up a customer centric UX for better Customer experience. Retailers are willing to
write the conversion of online customers by providing buyers best possible user experience to
ensure that shoppers are able to complete their purchasing and checking. For this easy and simple
navigation options are offered to customers so that they can find the products they require. The
main objective is to make online shopping more convenient as compared to trip in store. For this
detail organisations are offering customers access to sizing options, charge product variations
and FAQs that is guiding them to checkout process without any hesitation (7 DI GIT AL
MA RK ET IN G ST RA TE GI ES F OR RE TA IL , 2 01 9) .
As per view points of Lundberg A., (2019) with the changing times there are different digital
marketing strategies that are being focused by retail organisations for the purpose of attracting
customers. It includes content marketing, search engine marketing, mobile marketing social
media marketing influencer marketing or video marketing. Content marketing is related to
creation and distribution of time that is adding value for the audiences instead of just
broadcasting of advertising messages. Retail organisations are also using search engine
marketing that is about getting the website appear at top of results while any customer is
searching for the brand. Social media marketing is one of the effective means of marketing
channels that are used for the purpose of displaying advertisements and increasing the present
customer interaction and engagement level. There are different types of social media platforms
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that include LinkedIn, Instagram, Twitter, Pinterest, Facebook, YouTube and Snapchat that are
ranging. All these have to be used for the purpose of increasing the two-way interaction process
from the target segment of customers. Facebook advertisements have become very sophisticated
for targeting specific customer segments and getting the message as seen by the right people.
Influencer marketing is also a type of digital marketing strategy that is partnering with influences
experts’ authority celebrities who possess an existing base of customer. Retail organisations are
using popular personalities for providing instant cool points to the younger audiences. Many
retail brands are also working towards development of affiliate marketing channels in this
organisations are outsourcing to other organisations or individuals who can promote the brand in
return for commission. Many retail brands like an Amazon associates are using affiliate
marketing for outsourcing to other organisations to promote the product on their website (Yahia,
Al-Neama and Kerbache, 2018).
Providing convenient payment methods is also one of the digital marketing strategies. It is
accompanied with answering of customer queries with providing them live chat features. In
present scenario for the success retail organisations have to start treating the customers as real
people for this they have to create online shopping experiences based on customer trust. As per
study conducted by Zendesk 64% of customers are willing to receive real-time assistance from
the customer service channel they are using. 25% of customer service operations and retail
brands are also integrating for live chat features. Retail organisations are also offering cross
platform discounts and promotions as a part of digital marketing strategies. In this the target is
highlighting the promotional alerts and discount that it is encouraging online customers to
participate and increase the process of customer engagement.
Retail organisations are also working towards creating Omni channel marketing
campaigns. Online buyers have to go through multiple touch points and they have to select from
several parts to purchase. For the purpose of retail brands to be more effective in the digital
marketing efforts there is need to have a specific Omni channel marketing strategy that can offer
integrated seamless experience across various multiple devices. For instance, there has been
digital marketing campaign by Woolworths that is ranging from Instagram, Twitter to Pinterest
and also for YouTube channel. Woolworths is drawing thousands of subscribers and engagement
through quirky recipes, social posts and videos by highlighting the top products.
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Using of proximity and local area marketing is also a part of digital marketing strategy for
many retail organisations. Retail apps are helping with retail organisations to add digital revenue
streams as part of physical stores by offering them click and collect options to customers. It is a
capability that is allowing them to select the products as per their choices and further add to
online carts. It has led to improve the overall customer experience in terms of convenience and
speed.
The significance of social media marketing as a type of digital marketing for retail
industry
As per views of Obehrofer. H., (2021), Majority strategies of retail organisation is based on
personalization and customer engagement. Customers are willing to receive a relevant targeted
and personalize message from the overall data that is collected from cross-channel customer
touchpoints is the basis for digital marketing strategies. The consolidated data from multiple
channels is the base that enables retailers to deliver a personalized customer experiences through
marketing automation and emails. Another strategy that drives customer value in terms of digital
marketing strategy is higher customer engagement (Balaand Verma, 2018). True customer
engagement is based on data where retailers are analysing customer behaviour through machine
learning. CRM approach is used for the purpose of creating personalized experiences. In this
transactional and demographic data has to be combined with customer intelligence that is drawn
from multitude data sources. Mobile optimisation is also one of the strategies that retailers are
looking to enable optimal experiences. As per researches 41% of shoppers are making their
online purchases through mobile devices and 57% are making 25% of their purchases through
mobile devices time period of past 12 months (Digital marketing trends in retail that drive sales
and engage shoppers, 2020).
As per Nelson (2018), with the changing environment social media marketing as one
become one of the most important aspects that are part of digital marketing strategies. It is
offering incredible benefits in terms of reaching millions of customers across. For retail
industries there are several benefits that are associated with use of social media marketing as a
part of digital marketing strategies. It helps in improving brand awareness; social media is one of
the most profitable digital marketing platforms that can help in increasing the business visibility.
It helps in creation of social media profiles for the business and start networking with customers.
Approx 91% of marketers have used the social marketing efforts have led to increasing their
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