How important is CRM toward customer’s loyalty to conventional and Islamic bank marketing strategy?

Abstract

Purpose This paper aims to test the effect of customer relationship management (CRM) strategy on customer loyalty of bank customers. Design/methodology/approach The questionnaire derived from previous studies along with relevant literature was completed by 100 customers of conventional banks and 100 customers of Islamic banks. Structural equation modeling assessed the impact on customer loyalty on three key constructs of CRM programs (continuity marketing, one to one marketing and partnering). Findings Two out of three variables, which is continuity marketing and partnering, have significant effects on both banks. Continuity marketing is the dominant variable at conventional banks. Partnering is the dominant variable at Islamic banks. Research limitations/implications The effects of CRM programs on customer loyalty observed in this study required further research. The data used in this study were only gathered from the banking industry in Indonesia, and so more research studies are needed to support the conclusion. Practical implications It is reasonable to conclude that customer loyalty can be built, strengthened and retained by CRM programs, aimed at increasing security and building trust in each transaction, improving partnership, optimize another bank’s service product like internet banking and SMS banking and communicating with customers in a timely manner. Originality/value Advanced and specific knowledge relevant to CRM in banking service industries.

Model Analysis of the Mediation Effect of Customer Satisfaction on Customer Loyalty in Mitratel Companies: The Role of CRM and Company Reputation as Predictors

“…In this context, CRM indirectly influences customer loyalty through customer satisfaction. The findings are consistent with previous research (Yauwerissa & Putra, 2021;Munandar et al, 2022) which stated that CRM positively correlated with customer loyalty, measured by high satisfaction levels. This understanding highlights the importance of paying attention to the interactions between companies and customers and the level of customer satisfaction resulting from those interactions.…”

“…Several literature on the influence of CRM, satisfaction, and loyalty in Mitratel Companies stated that the importance of a strong relationship between CRM practices and company performance is to retain existing customers and attract new ones (Bhat & Darzi 2018); (Dermawan et al, 2023). Rahimi & Kozak (2017) and Munandar et al (2022) stated that the effective implementation of a CRM system increases customer retention and brand loyalty. In addition, customer satisfaction was also identified as the main driver of customer loyalty.…”

Antecedents and consequences of strategic online-reputation management: moderating effect of online tools

“…CRM helps improve the quality of the firm’s relationship with consumers and their brand loyalty, which generates emotional commitment to the brand and transforms customers into brand ambassadors (Law et al , 2018). Previous studies show how the use of CRM is reflected in the assessment made by customers of variables such as loyalty (Munandar et al , 2022) and brand equity (Shriedeh and Ghani, 2017). Moreover, from the firm’s perspective, several scholars have linked the use of CRM on online media to business performance in different sectors, including tourism (Bilgihan et al , 2015; Garrido-Moreno et al , 2018).…”

Marketing Tactics and Corporate Image: The Key to Maintaining Loyalty

“…Islamic banks in Indonesia still face serious challenges in attracting customers, both Muslim and non-Muslim (Suhartanto et al, 2022). Bank customers in Indonesia, both conventional banks and sharia banks, tend to switch banks, indicating low customer loyalty (Munandar et al, 2022). Develop human resource capabilities in relation to banking skills and understanding of Shariah principles to increase customer trust (Fauzi & Suryani, 2019) because Islamic banks are no different and compete with conventional banks in the race to retain customers (Albaity & Rahman, 2021).…”