The effects of customer relationship management, service quality and relationship marketing on customer retention: The mediation role of bank customer retention in Indonesia

Abstract

This study aims to examine customer retention (CR) from the aspect of customer satisfaction with customer relationship management (CRM), service quality and marketing relations (RM). State-owned bank customers selected the research population in all branch offices in the Madura region, and data were collected through a Likert scale model questionnaire. The results of the path analysis using the structural analysis model (SEM) show that there is an influence of CRM on customer satisfaction; there is an effect of service quality on customer satisfaction; there is an effect of RM on customer satisfaction; CRM through customer satisfaction affects CR; service quality through customer satisfaction affects CR; RM through customer satisfaction affects CR; there is an effect of customer satisfaction on CR on customers. Then the simultaneous test shows that simultaneously RM, service quality, and RM impact customer satisfaction, and the value of coefficient of determination (R-Square) explains that CRM, service quality, and RM can effectively contribute to customer satisfaction. Simultaneously, CRM, service quality, and RM affect CR. CRM, service quality, and RM affect CR mediated by customer satisfaction. CRM, service quality, and RM, through customer satisfaction, can effectively contribute to CR to customers of state-owned bank Regional Offices.