Strategic Application of Digital Marketing Tools for Customer Acquisition in Nigerian Microfinance Banks

This study examines the strategic application of digital marketing tools for customer acquisition in Nigerian microfinance banks, with specific focus on institutions operating in Ogun State and Lagos State, South West Nigeria. Microfinance banks play a critical role in extending financial services to underserved small business owners and low-income households. However, many of these institutions rely on traditional and often ineffective marketing communication methods, limiting their ability to attract and retain customers in an increasingly digital marketplace. The study adopts a descriptive survey design supplemented by documentary analysis of selected microfinance banks' digital marketing activities. Data are collected from 180 marketing officers and 120 customers through structured questionnaires. Analysis employs descriptive statistics, Pearson correlation, and regression. The study evaluates digital tools including social media marketing, email campaigns, SMS marketing, and search engine optimisation in relation to new customer acquisition rates. Preliminary findings suggest that SMS marketing and social media advertising are the most cost-effective acquisition tools for microfinance banks given their target demographics, while website-based acquisition strategies underperform due to limited customer digital literacy. The research provides practical recommendations for microfinance bank management, their marketing departments, and the Central Bank of Nigeria on designing digital acquisition strategies that are affordable, contextually relevant, and capable of expanding financial inclusion in urban and peri-urban Nigerian communities. Keywords: digital marketing, customer acquisition, microfinance banks, financial inclusion, Nigeria