IoT-Powered Customer Engagement for Marketing Optimization in Tanzania SMEs

  • Khalifa Issa Mkali Nelson Mandela African Institution of Science and Technology, Tanzania, United Republic of
  • Ramadhani S. Sinde Nelson Mandela African Institution of Science and Technology, Tanzania, United Republic of
  • Geoffrey R. Karokola University of Dar es Salaam Computing Centre, Tanzania, United Republic of
DOI: 10.51519/journalisi.v7i3.1235
Keywords: IoT, Customer Engagement, Marketing Optimization, SMEs, IoT-powered Platform.

Abstract

Embracing Internet of Things (IoT) technologies presents significant opportunities for enhancing customer engagement. However, Tanzanian Small and Medium Enterprises (SMEs) are confronted with persistent challenges, including limited infrastructure, financial barriers, and low digital literacy. This study proposes an IoT-powered customer engagement platform built using Python-Django specifically tailored for Tanzanian SMEs to generate actionable customer insights and strengthen engagement strategies. A mixed-methods approach, combining surveys, observations, and interviews with SME owners and customers in Dar es Salaam and Arusha, revealed operational inefficiencies and gaps in customer interaction. Based on these insights, a scalable and cost-effective IoT solution was designed to automate feedback collection, monitor customer behavior in real-time, and deliver personalized services. The platform was evaluated through simulated testing, expert reviews, and performance analysis. Results showed a 15 - 20% improvement in customer retention, a 30% reduction in inquiry response time, 99.50% system uptime, and an 80% user-friendliness score. These findings demonstrate the novelty and effectiveness of integrating IoT, real-time monitoring, and marketing optimization in the Tanzania SME context. Overall, the research highlights the transformative potential of IoT in enabling data-driven decision-making, enhancing customer relationships, and promoting sustainable growth in underserved business environments.

Downloads

Download data is not yet available.

References

K. A. Islam and M. R. K. Miajee, "Small and medium enterprises (SMEs) financing in Bangladesh: a review of literature," Int. J. Small Medium Enterprises, vol. 1, no. 1, pp. 11-15, 2018.

H. M. Mushi, “Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications,” Cogent Business & Management, vol. 11, no. 1, Dec. 2024, doi: 10.1080/23311975.2024.2415533.

International Finance Corporation (IFC), “IFC, SME Finance Forum Target Solutions to Africa’s $331 billion SME Finance Gap.” Accessed: Oct. 03, 2025. [Online]. Available: https://www.smefinanceforum.org

I. C. Ndibalema, E. John, and O. W. Msuya, “Entrepreneurship education and financial performance of graduate-owned SMEs in Tanzania,” African Business Management Journal, vol. 2, no. 2, pp. 28–42, Dec. 2024, doi: 10.58548/2024abmj22.2842.

Ministry of Industry and Trade, “Small and Medium Enterprise Development Policy,” Dar es Salaam, Tanzania, 2003. Accessed: Oct. 03, 2025. [Online]. Available: https://www.viwanda.go.tz

M. Davis Festo, “The Factors Hindering the Effective Development of SMEs Businesses in Tanzania: A Review Study,” International Journal of Innovative Science and Research Technology (IJISRT), pp. 1936–1944, May 2024, doi: 10.38124/ijisrt/IJISRT24APR812.

J. Thomas and M. Gabriel, “Data-Driven Success for SMEs: Integrating Predictive Analytics, IoT, and Cybersecurity to Drive Growth,” Research, Dec. 2024, doi: 10.13140/RG.2.2.33501.32487.

D. Bandyopadhyay and J. Sen, “Internet of Things: Applications and Challenges in Technology and Standardization,” Wirel Pers Commun, vol. 58, no. 1, pp. 49–69, May 2011, doi: 10.1007/s11277-011-0288-5.

N. Rane, “Enhancing Customer Loyalty through Artificial Intelligence (AI), Internet of Things (IoT), and Big Data Technologies: Improving Customer Satisfaction, Engagement, Relationship, and Experience,” SSRN Electronic Journal, 2023, doi: 10.2139/ssrn.4616051.

Tanzania Investment and Consultant Group Ltd. (TICGL), “Tanzania SME Development Research Survey 2024–2030,” Dar es Salaam, Tanzania, 2024. Accessed: Oct. 03, 2025. [Online]. Available: https://data.ticgl.com/smes

A. Nyamwesa, “Cloud Computing Technology Adoption: Challenges for SMEs, A Case of Selected SMEs in Tanzania,” International Journal of Advanced Business Studies, vol. 3, no. 2, pp. 1–12, Jun. 2025, doi: 10.59857/IJABS.3118.

United Nations, “SDG 8 – Decent Work and Economic Growth: Enhancing SME Growth and Competitiveness through IoT-Enabled Engagement Strategies,” United Nations. Accessed: Oct. 03, 2025. [Online]. Available: https://sdgs.un.org/goals/goal8

A. A. Atayero, S. O. Oluwatobi, and P. O. Alege, “An Assessment of the Internet of Things (IoT) Adoption Readiness of Sub-Saharan Africa,” Journal of South African Business Research, pp. 1–13, Feb. 2016, doi: 10.5171/2016.321563.

S. Ajayi, S. M. C. Loureiro, and D. Langaro, “Internet of things and consumer engagement on retail: state-of-the-art and future directions,” EuroMed Journal of Business, vol. 18, no. 3, pp. 397–423, Sep. 2023, doi: 10.1108/EMJB-10-2021-0164.

D. Marikyan and S. Papagiannidis, “Unified Theory of Acceptance and Use of Technology: A review,” in Theory Hub Book, S. Papagiannidis, Ed., Newcastle University repository: Open Research, 2025. Accessed: Oct. 03, 2025. [Online]. Available: https://open.ncl.ac.uk

N. El Malouf and H. Bahemia, “Diffusion of Innovations: A review,” in Theory Hub Book, S. Papagiannidis, Ed., Open Research, Newcastle University (online repository), 2025. Accessed: Oct. 03, 2025. [Online]. Available: https://open.ncl.ac.uk

S. N. M. Aldouri, “Internet of Things Application in Digital Marketing to Improve the Efficacy of a Company,” Economic Annals-ХХI, vol. 204, no. 7–8, pp. 15–20, Aug. 2023, doi: 10.21003/ea.V204-02.

M. Nasirinejad, H. Afshari, and S. Sampalli, “Challenges and Solutions to Adopt Smart Maintenance in SMEs: A Literature Review and Research Agenda,” IFAC-PapersOnLine, vol. 58, no. 19, pp. 917–922, 2024, doi: 10.1016/j.ifacol.2024.09.164.

M. Gabriel and V. Kumar, “Revolutionizing SME Inventory Systems: A Review of IoT-Integrated Automated Management Solutions,” 2024, doi: 10.13140/RG.2.2.30145.88160.

D. Uver, “Internet of Things and the Future of Digital Marketing,” Journal of Data Analytics, vol. 2, no. 1, pp. 24–29, May 2023, doi: 10.59615/JDA.2.1.24.

C. Sassanelli and D. A. de J. Pacheco, “The impact of the internet of things on the perceived quality and customer involvement of smart product-service systems,” Technol Forecast Soc Change, vol. 198, p. 122939, Jan. 2024, doi: 10.1016/j.techfore.2023.122939.

Md. S. Hossain, N. M. A. Chisty, and R. Amin, “Role of Internet of Things (IoT) in Retail Business and Enabling Smart Retailing Experiences,” Asian Business Review, vol. 11, no. 2, pp. 75–80, Jul. 2021, doi: 10.18034/abr.v11i2.579.

F. Berman, E. Cabrera, A. Jebari, and W. Marrakchi, “The impact universe—a framework for prioritizing the public interest in the Internet of Things,” Patterns, vol. 3, no. 1, p. 100398, Jan. 2022, doi: 10.1016/j.patter.2021.100398.

N. Magaletti, V. Nortarnicola, M. Di Molfetta, S. Mariani, and A. Leogrande, “Integrating IoT, AI, and Data Analytics in Food Machinery Production: A Digital Innovation Model for SMEs,” Apr. 23, 2025. doi: 10.20944/preprints202504.1958.v1.

Preethi Rajan, “Integrating IoT Analytics into Marketing Decision Making: A Smart Data-Driven Approach,” International Journal of Data Informatics and Intelligent Computing, vol. 3, no. 1, pp. 12–22, Feb. 2024, doi: 10.59461/ijdiic.v3i1.92.

A. E. Ezekwueme, C. E. Abel, and G. A. Dike, “Efficiency of IoT Adoption and Supply Chain Optimization: An Empirical Evidence from Nigeria,” Preprints.org, Oct. 2024, doi: 10.20944/preprints202410.1582.v1.

The United Republic of Tanzania (URT), “The 2022 Population and Housing Census: Arusha Region Basic Demographic and Socio-Economic Profile Report,” Dar es Salaam, Tanzania, Jan. 2024. Accessed: Oct. 03, 2025. [Online]. Available: https://www.nbs.go.tz

R. Rugeiyamu, J. Ackim, and A. S. Shayo, "The Tanzania housing and population census 2022: a panacea for local service delivery and development drawbacks," Local Admin. J., vol. 15, no. 1, pp. 1-14, 2022.

G. Guerrero-Ulloa, C. Rodríguez-Domínguez, and M. J. Hornos, “Agile Methodologies Applied to the Development of Internet of Things (IoT)-Based Systems: A Review,” Sensors, vol. 23, no. 2, p. 790, Jan. 2023, doi: 10.3390/s23020790.

Md. M. Islam, S. Nooruddin, F. Karray, and G. Muhammad, “Internet of Things: Device Capabilities, Architectures, Protocols, and Smart Applications in Healthcare Domain,” IEEE Internet Things J, vol. 10, no. 4, pp. 3611–3641, Feb. 2023, doi: 10.1109/JIOT.2022.3228795.

G. E. Moses and Y. Oyineteimode, “Software Development Process for an IOT-Based Fingerprint Device Based on ESP32 MCU,” International Journal of Computer Science and Mathematical Theory, doi: 10.56201/ijcsmt.vol.11.no5.2025.pg46.62.

Published
2025-09-30
Abstract views: 44 times
Download PDF: 14 times
How to Cite
Mkali, K., Sinde, R., & Karokola, G. (2025). IoT-Powered Customer Engagement for Marketing Optimization in Tanzania SMEs. Journal of Information Systems and Informatics, 7(3), 2726-2757. https://doi.org/10.51519/journalisi.v7i3.1235
Issue
Vol 7 No 3 (2025): September
Section
Articles

Copyright (c) 2025 Journal of Information Systems and Informatics

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

  1. I certify that I have read, understand and agreed to the Journal of Information Systems and Informatics (Journal-ISI) submission guidelines, policies and submission declaration. Submission already using the provided template.
  2. I certify that all authors have approved the publication of this and there is no conflict of interest.
  3. I confirm that the manuscript is the authors' original work and the manuscript has not received prior publication and is not under consideration for publication elsewhere and has not been previously published.
  4. I confirm that all authors listed on the title page have contributed significantly to the work, have read the manuscript, attest to the validity and legitimacy of the data and its interpretation, and agree to its submission.
  5. I confirm that the paper now submitted is not copied or plagiarized version of some other published work.
  6. I declare that I shall not submit the paper for publication in any other Journal or Magazine till the decision is made by journal editors.
  7. If the paper is finally accepted by the journal for publication, I confirm that I will either publish the paper immediately or withdraw it according to withdrawal policies
  8. I Agree that the paper published by this journal, I transfer copyright or assign exclusive rights to the publisher (including commercial rights)