27th-Jan-2026 • Martin Mwangi • SME Customer Insights
Small and Medium Enterprises (SMEs) in Kenya are a vital pillar of our economy. With an estimated 1.3 million SMEs contributing about 48% to the country's GDP, it is evident that these businesses play a significant role.
However, to sustain and grow this contribution, it's crucial for SME owners to understand their customers better. Customer insights can unlock new growth opportunities, improve customer satisfaction, and foster loyalty.
Customer insights help businesses tailor their offerings to meet customer needs, preferences, and pain points. According to a 2021 report by NielsenIQ, 66% of Kenyan consumers prefer brands that understand their unique needs and provide personalized offers.
There are various ways to gather customer insights. Surveys, social media monitoring, and customer feedback are common methods. Lipabiz, a business management platform and payments platform in Kenya, provides tools for customer engagement and data collection.
With customer insights at hand, SME owners can make informed decisions that drive growth. For instance, understanding your customers' spending habits allows you to optimize product offerings and pricing strategies. Similarly, knowing their preferred communication channels enables targeted marketing campaigns.
A local success story that demonstrates the power of customer insights is M-Shwari. Launched in 2012, this digital banking platform offers savings and loans services through mobile phones. By analyzing customers' transactions, M-Shwari developed personalized lending products, leading to increased customer satisfaction and business growth.
