Digital Customer Engagement and Financial Stability of Micro, Small, And Medium Enterprises

This study examined the relationship between Digital Customer Engagement and Financial Stability among Micro, Small, and Medium Enterprises (MSMEs) in selected municipalities of Laguna. Using a mixed-methods descriptive-correlational design, the researchers gathered data through questionnaires and interviews. Digital Customer Engagement was assessed in terms of social media interaction, online communication, customer feedback, and communication responsiveness, while Financial Stability was measured through revenue consistency, profitability, cash flow management, and business sustainability. Quantitative data were analyzed using descriptive and inferential statistics, while interview responses were examined through thematic analysis. The findings revealed that participating MSMEs practiced high Digital Customer Engagement and reported high Financial Stability. Some respondent characteristics were significantly related to these variables, while others were not. All dimensions of Digital Customer Engagement had positive and significant relationships with Financial Stability, with Communication Responsiveness showing the strongest association. Qualitative findings emphasized the importance of digital communication, customer feedback, and timely responses in maintaining customer relationships. Overall, stronger Digital Customer Engagement was associated with better Financial Stability among the participating MSMEs. However, the results indicated a relationship rather than a causal effect and were limited to the selected municipalities.