21061644 Consult Presentation.

ANALYSING THE EFFECTIVENESS OF

SOCIAL MEDIA MARKETING FOR
JUMIA NIGERIA

Presenter:
Victor Onyekachi Azuka
21061644 Consult.

08/24/2023 1
Client Background:

Jumia Nigeria, a part of the Jumia Group, is a prominent pan-African technology company that operates as an
online marketplace. With a focus on providing a wide range of products and services, Jumia Nigeria utilizes social
media platforms, including Facebook, Instagram, Google Ads, blogs, and its website, to promote its offerings and
connect with customers. The company has shown significant growth and popularity in Nigeria's online retail
sector.
 

Introduction:
This project aims to analyze the effectiveness of Jumia Nigeria's social media marketing strategies. The study has
its focus on the impact of social media spending on the company's sales and revenue. Primary data, provided by
the client, which I utilized for the analysis, including sales/revenue generated through Facebook, Instagram, and
Google Ads, along with the corresponding costs incurred, from July to December 2022. I employed regression
analysis to determine the relationship between social media spending and sales/revenue.
Key Assumptions, Constraints, and Dependencies:

I assumed that the client would provide accurate and complete data for analysis and that my firm possesses the
necessary expertise to conduct the data analysis effectively. Constraints include limited access to social media
data, changing social media algorithms, incomplete or inaccurate data, and competitive pressures. Mitigation
strategies, such as working with social media platform officers, staying updated with algorithm changes, data
validation processes, and conducting competitive analysis, was proposed.

Plan:
The project is estimated to be completed within the timeline provided by my client. I as the consultant leveraged
on the knowledge of Jumia Nigeria, responses from my survey and analysis of the sales data. I designed two
hypothesis for this study:

1. Null hypothesis: There is no significant relationship between social media spending and sales/revenue
generated from social media.

2. Alternative hypothesis: There is a significant relationship between social media spending and sales/revenue
generated from social media.
 Objective, Analysis, Interpretation and Visualization:

The objective of this work is to analyze the effectiveness of social media marketing for Jumia Nigeria and provide
recommendations for improving its strategies.
Several solution options were proposed, including creating engaging content, conducting customer satisfaction surveys,
implementing a customer loyalty program, obtaining customer feedback, and conducting cost-benefit analysis. These options
were presented to the management team, and their opinions were collected through a sample survey. I generated the
frequency tables using SPSS v.23 (A statistical tool powered by IBM used for analysing data, the response and the
visualization was collected and done with Qualtrics.
Items SA A D SD  Remarks

4 8 1 7 2.45 Reject
Creations of engaging contents
16 24 2 7

5 6 5 4 2.6 Reject
Sampling customer satisfaction survey 20 18 10 4

3 3 6 8 2.0 Reject
Creating customer loyalty program
12 9 12 8

0 9 5 6 2.15 Reject
Obtaining customer feedback
0 27 10 6

13 4 2 1 4.0 Accept
Conducting cost-benefit analysis
52 16 8 4
Based on the analysis of the survey results, it was determined that conducting a cost-benefit analysis using the
sales data would be the most effective solution for Jumia. Regression analysis was performed to establish the
relationship between social media spending and revenue. The results showed a significant positive relationship
between advertising costs on Instagram and Google Ads and revenue generated. However, no significant
relationship was found for Facebook.
Further analysis of the sales data revealed that Google Ads consistently generated higher sales volumes
compared to Facebook and Instagram. The sales trend showed an increasing rate of sales as the month
approached December, which is the peak sales period.
21061644 Consult Presentation
Summary of Findings/Conclusion.

From the analysis and findings made from the regression results, and the
insights obtained from the data visualised, the following summary are hereby
made:

1. Advert costs are not mainly responsible for the sale of the organisation
on Facebook as seen from the above analysis done. Factors such as
direct referrals from existing customers, staff recommendations,
discounts, and promotional offers plays a significant role in driving
sales on this platform.
2. There exists significant relationship between advert cost on Instagram
and Google Ads and revenue from the two platforms. Increasing
advertising in Instagram and Google Ads can lead to an increase in
revenue, as observed in the regression analysis.
3. Low spending on Instagram is responsible for low revenue from
Instagram. This argument can also hold for the Google Ads in the high
spending in Google Ads could arguably said to be responsible for the
high revenue from google ads.
4. Google Ads consistently generates higher sales volumes compared to
Facebook and Instagram. The organization should continue to prioritize
and invest in Google Ads for maximum revenue generation.
5. There are other factors responsible for sales in Facebook like direct
referrals from existing customers and staffs, discounts, and promotional
offers, also sales volumes tend to increase as the month approaches
December, with December being the month of highest sales. This

08/24/2023 suggests a seasonal trend influenced by heightened economic activities

6
during the festive period.
Recommendation:

Following the findings made above, I hereby recommend as follows:

 The organisation should channel more advert costs to Google Ads and Instagram, capitalizing on their proven effectiveness
in driving revenue. This investment will ensure that resources are maximized and focused on the platforms with the highest
potential for return on investment.

 Other factors responsible for increase in sale via Facebook should be enhanced. (It is possible that there exist more sales
potentials in Facebook as a non-cost item is seen to be driving the sales.) such as direct referrals, staff recommendations,
discounts, and promotional offers. By leveraging these factors, Jumia can boost sales on Facebook even without significant
increases in advertising spending.
 Jumia should increase its sales efforts from September as sales appears to pick up from there at an increasing rate and this
period leading up to the peak sales month of December. Aligning marketing and promotional activities with this seasonal
trend can help maximize revenue potential.
By implementing these recommendations, Jumia Nigeria can optimize its social media marketing strategy, increase revenue
generation, and better meet the needs and expectations of its customers.
Client Feedback:

I placed a call to the client for his feedback and at the end of the call, I was able to get the below feedback from him.

"The analysis and findings presented in the report on the effectiveness of social media marketing for Jumia Nigeria are comprehensive and well-
supported. The report provides a clear overview of the problem statement, solution options, and the evaluation process undertaken. The use of
tables, graphs, and regression analysis adds depth to the analysis and enhances the understanding of the relationships between social media
spending, revenue, and customer preferences.

The report effectively presents the opinions of my team on the solution options, providing valuable insights into their perceptions and preferences.
The use of frequency tables and computation of solution selection criteria adds a quantitative aspect to the analysis, making it more robust.

The regression analysis conducted to determine the relationship between cost and revenue from different social media platforms is well-executed
and provides meaningful results. The interpretation of the regression results, along with the visualizations of sales trends, costs, and revenue, offers
a comprehensive understanding of the effectiveness of each social media channel.

The summary of findings and the corresponding recommendations are logical and well-supported by the analysis conducted. The recommendations
to allocate more advertising costs to Google Ads and Instagram, enhance factors driving sales on Facebook, and focus sales efforts from September
align with the insights derived from the data analysis.

Overall, the report demonstrates a thorough understanding of our objectives, employs appropriate statistical analysis techniques, and provides
actionable recommendations based on the findings. It presents a well-structured and informative analysis of the effectiveness of social media
marketing for Jumia Nigeria."
Key Lessons Learnt:

The effectiveness of social media marketing varies across different platforms. The analysis showed that while
Instagram and Google Ads demonstrated a significant relationship between advertising cost and revenue,
Facebook did not exhibit the same pattern. This highlights the importance of evaluating each social media
platform independently and allocating resources accordingly.

Secondly, customer feedback and satisfaction surveys play a crucial role in understanding the preferences and
needs of customers. Although not chosen as the recommended solution, a considerable number of respondents
recognized the value of customer feedback in determining the best social media approach. This underscores the
importance of actively seeking and incorporating customer feedback into marketing strategies.

Finally, that time management and good communication among all are very essential on consultancy work as to
achieve the best outcome for the client.
Personal Reflection:

This consultancy project has provided valuable insights into the effectiveness of social media marketing for Jumia
Nigeria. It was interesting to observe the varying impact of different social media platforms on revenue
generation. The findings reinforced the importance of data-driven decision-making and the need to evaluate each
marketing channel independently.

Thank You.