Journal of International Business Research and Marketing
Volume 1, Issue 1, November, 2015
journal homepage: www.researchleap.com
Importance of Customer Relationship Management in Customer Loyalty (Brangkal
Offset of East Java, Indonesia)
Chamdan Purnamaa
a
President School of Economics, Al-Anwar Mojokerto, Indonesia
ABSTRACT
2015 Research Leap/Inovatus Services Ltd.
All rights reserved.
This study examines the importance of customer relationship management to increase
customer loyalty. Study uses two years’ data on 71customer (respondents)of Brangkal Offset
chosen on the basis of random samplingtechnique. Results of this investigation indicate that
important aspects of customer relationship management those are people, process and
technology both partially and simultaneously have an impact on the increase of customer
loyalty.
Keywords:
Customer relationship management
Customer loyalty
Indonesia
1. Introduction
The business strategy is currently focused on the creation of a
trust or confidence of customers to the company. The customer
is a very valuable asset for the company.If the company loses
its customers, it will not only lose its profit, but also its
possible sales that may happen in the future will be in at risk.
Acquired loyal customers are the biggest advantage of
thecompany becausethe company can sell more goods or
services to those loyal customers who have already tried the
relevant goods or services of the company and formed some
knowledge on them. Besides, the company has spent a lot of
effort to establish a relationship with the customer.
The best way to build relationships with customers can be
realized by building a customer relationship management.
Customer relationship management is a type of management
that specifically discusses the theory about the handling the
relationship between the company and its customers with the
goal of increasing the company's value in the eyes of its
customers. Customer relationship management embraces all
aspects of dealing with prospective and current customers,
including the call center, sales force, marketing, technical
support and field service. As the wording implies, customer
relationship management is an activity aimed at obtaining a
relationship with the customer to be able to provide a
significant advantage for the company.
Research conducted in Taiwan for 58 hotels analyze
customer relationship management in the form of operational
processes by Edward (2010) states that the operational
processes both increase profitability and maximize customer
relationships and operational capabilities can accelerate the
process of customer ordering. Research conducted by Borle et
al (2010) showed that the customer community management
program can increase the number of customers the
companytargets.
Research in the US by Krasnikov (2009) conducted on
commercial bank ofthe US examines the impact of the
implementation of customer relationship management in two
company's performance, operational performance, cost
efficiency and their ability to generate profit (profit efficiency).
Results of the study found that implementation of customer
relationship management improve cost efficiency and increase
profits.
The results of the research conducted in Egypt by Battor
(2010) reinforces the view that developing good relationships
with customers can improve a company's ability to innovate.
Relationship with customers is one indicator of customer
relationship management.
Purnama (2014: 242) in his study conducted in Indonesian
small clothing industrystates that attitude, intelligence,
emotion, skills and knowledge of employees altogether can
influence the ability of the employee. Results of this study
prove that the skills and knowledge of employees affect the
ability of businesses in the works and will also increase
production.
Prasad (2008) examined the effect of relational marketing
attributes such as trust, commitment, communication, empathy,
and conflict on relationship quality and customer loyalty. The
study was conducted on 300 customers of retail companies in
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Journal of International Business Research and Marketing
India. The research proves that the quality of relationships has
a significant effect on customer loyalty.
Few studies conducted in Taiwan, the US, India, Egypt and
Indonesia are related to customer relationship management and
customer loyalty relationship. Through customer relationship
managementcompanies can build closer relationships with
customers, and the company can learn the needs of customers
and provide a selection of products or services in accordance
with their request. As expressed by Kotler and Keller (2007:
189), customer relationship management is “the process of
managing detailed information about individual customers and
carefully managing all customer touch points in order to
maximize customer loyalty”. This study is quite the same with
other studies. The distinguishing feature of this study is that
previous studies looked at the performance in terms of costs,
the ability to innovate and company's profits and customer
relationships and they were carried on the example of retail,
food, hospitality and banks. This study has been carried out in
the example of an offset servicecompanyto measure its
performance in terms of customer loyalty.
At the core of customer relationship management, there is a
way to analyze customer behavior. From this analysis, the
company can finally be able to take ways how to serve
customers in a more personalized way so that customers
become loyal to the company. To be able to maintain a loyal
customer and in order not to lose them to a competitor, the
company should establishgood relationship with the customers
and should try toincrease company's value in the eyes of its
customers. This endeavor requires a precise and efficient
strategy from the company to know its customers betterto serve
them better. Customer relationship management is not a
new,recently invented conceptby consultant’s world. Customer
relationship management is a fundamental paradigm of how to
look at the customer and how to better satisfy customers
through a harmonious relationship and quality.
2. Literature Review
2.1. Customer Relationship Management
According to Widjaja (2008: 45), customer relationship
management is a comprehensive approach to create, maintain,
and developrelationships with customers. According to Buchari
(2004: 271),customer relationship management is a process to
acquire, retain and grow the most profitable customers.
According to Frederick (2000: 2),customer relationship
management is the process of modifying consumer behavior
over time and learning from each interaction, change, taking
care of customers, and strengthening ties with them. According
to understanding of the customer relationship management by
Luke (2001:3), it is “an activity that involves the entire human
resources to retain existing customers; a strategy to cultivate
and maintain relationships with customers; an attempt to
determine the wants and needs of customers”.
Based on a variety of definition ofcustomer relationship
management from above, it can be concluded that customer
relationship management is a business strategy of the company
to establish relationships with customers and provide
satisfactory services
for
customers.
Luke
(2001:
116)dividesthree main components, namely: People, Process
and Technologyof customer relationship management into
2.1.1. People
In this case the employee has a very important role in the
sustainability of the implementation ofcustomer relationship
management, because they are implementing customer
relationship management as an activity or desire ne companies.
With the implementation of customer relationship management
has been a change in marketing paradigm, when previously, the
production becomes the main focus in the implementation of
customer relationship management, the customer is the main
focus. As for what needs to be addressed from a aspect people
is the enthusiasm, knowledge, skills, friendliness, and
responsiveness to the customer's own employees.
2.1.2. Process
Implementation of customer relationship management
changes the complete business processes that have been in
place for a long time. It changes both business processes that
directly involve customers or not. On the whole, customer
relationship management business functionality is focused on
the customer. Customer relationship management process
includes:
1. Identification: Identification of customers and prospects
based on existing data, customers who are profitable, he lived
where and why he was favorable. Most companies only care
how big the benefits of its customers without knowing who are
the customers that have been profitable. There are a few things
to know about the customer such as: (a) Firm graphic: namely
information about customers or companies that do business
with us. Such as: address, business, zip code and so on. (b)
Demographic and psychographic: the information concerning
contact person (customers). (c) Info graphic: how to contact
Pearson wanted a way of interaction in obtaining information
about him.
2. Differentiation: Segment customers based on behavior,
demographics, and customer expectations.
3. Interaction: Make the best plan for interacting with
customers, and then create customer loyalty programs,
crossselling, and so on. The longer the interaction occurs, the
more know each other, the more reluctant customers moving to
competitors because customers will find it hard to start a new
relationship with a competitor. Interaction can be done by
email, telephone and fax, mail, and face to face.
4. Personalization: Products and loyalty programs tailored
to the wishes of customers who continuously. Using all the
information that has been obtained prior to making goods and
services in accordance with the wishes and needs of customers.
2.1.3. Technology
Technology has a role in customer relationship
management. Firstly, it is building a data base ofcustomers
ranging from the operating system up to the transaction.
Secondly, to analyze who the customer is themost good; he
bought what, how often. Third, implement the activities of
sales, marketing, and customer service by integrating different
communication channels (operational customer relationship
management).
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Journal of International Business Research and Marketing
Customer loyalty has an important role in a company, the
longer the company maintains a loyal customer, the greater the
profit generated. This is the main reason for a company to
retain customers. When companies spend less in order to
obtain new customers, the company can also spend money to
improve the quality of products or services continuously. In
turn, it also can help make customers become more loyal.
Having a loyal customer is the ultimate goal of all
companies, but most companies do not realize that customer
loyalty is formed through the stages starting from looking for
potential customers to the Customer Advocate will bring
benefits to the company. Customer loyalty according to Griffin
(2005: 4) is: "Customer loyalty is defined purchasing buying
behavior nonrandom disclosed from time to time by some of
the decision-making unit". According to Tjiptono (2000: 110)
says that: "Customer loyalty as a customer commitment to a
brand, the store, the supplier is based on a very positive attitude
and reflected in repeat purchases consistent." Meanwhile,
according to Widjaja (2008: 6), customer loyalty is attachment
to a brand, store, manufacturer, service provider, or other entity
based on a favorable attitude and a good response as repeat
purchases".
From the above definition, it can be concluded that the
more loyalty leads to behavior (behavior) compared with an
attitude (attitude) and a loyal consumer purchasing behavior
will exhibit behavior that is defined as the purchase of a regular
and behaviors throughout the show by the decision maker.
Loyal customer is an asset to the company and to determine
the company's loyal customers to be able to offer products or
services that can meet customer expectations and satisfy its
customers, when customers make a purchase action repeatedly
and regularly then the customer is a loyal customer. This is
reinforced by the statement of Griffin (2005: 31), which states
that the characteristics of loyal customers include:
Make purchases on a regular basis or regular.
Buying outside the line of products or services.
Recommend to others.
Not easily affected competitor product appeal.
3. Research Methods
This study is classified as explanatory research. Approach
to research using correlation design. Draft correlation is useful
to analyze the relationship between one variable to another
variable, or how a variable affects other variables. The study
population was Brangkal Offset customers since the last two
years as many as 250 customers. Usage sample technique is to
use simple random sampling. The size of the sample to be
studied using questionnaires as the data collection tool
according to population numbers mentioned above, which
amounted to 250 people, while the determination of the
number of samples is done by using the formula of Slovin
Umar (2002: 146). Based on the calculation of the number of
members of the sample in this study were 71 respondents. In
this study the analysis of the test data validity, reliability and
classical assumption of all items of questions (instruments) as
well as multiple regression analysis to see the effect by using
SPSS for Windows version 16.0.
Model equations to see the influence of variables customer
relationship management, which include: Aspects People,
process and Technology on customer loyalty are as follows:
Y1 = a + β1X1 + β2X2 + β3X3
Description: Y1 = Customer Loyalty, a = Constanta, X1 =
Aspects People, X2 = Aspects Process, X3 = Aspects
Technology, (β1, 2, 3, = Coefficient that describes the path of
the influence of the independent variables to the dependent
variable
4. Results
4.1. Test Results of Validity and Reliability
The test results question the validity of the entire item
(instrument) study of samples collected and processed using
SPSS analysis tools 16:00 prove that all items are valid
questions. The analysis showed that all items have a question
of correlation greater than 0.40 and have significant value
Pearson smaller than α (0.05). Thus, all the indicators used to
dig respondents on variables customer relationship
management which include: the aspect people, process and
technology and customer loyalty is valid.
While the reliability test results that have been performed
using SPSS 16.0 analysis tool of data that can be collected, it is
known that the value of Cronbach’s alpha all variables in this
study is greater than 0.70 so it can be said that the reliability is
acceptable even better. Thereby, it can be concluded that the
results of measurements that have been done are reliable for
further analysis.
4.2. Test Results of Regression Analysis
In this regression test in addition to looking for the
coefficient of determination can also be used to test the
hypothesis, testing the hypothesis with a simple regression and
t test with the rules t test >_ t table rejected significant
meaning, and if t test >_ t table Ho is accepted, it means
insignificant. Testing this hypothesis using regression 3
doubles, and regression testing and f test, with the rules f test
>_ f table Ho rejected significant meaning, and if f test >_ f
table Ho is accepted, it means insignificant.
Test results of regression statistical analysis tools SPSS
version 16.0, to examine the effect of customer relationship
management. Which include: (X1) People, (X2) Process and
(X3) Technology on customer loyalty (Y1) like the following
table:Table 1: Coefficient of Determination the influence of
Aspects People, Process and Technology to Customer Loyalty
Table 2: Result of ANOVA; the influence of Aspects
People, Process and Technology to Customer Loyalty
Model Summary
Model
R
R Square
Adjusted R
Square
1
.0878a
.772
.762
Std. Error
of the
Estimate
1.83985
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Journal of International Business Research and Marketing
Table 3: Test Result Coefficient the influence of Aspects
People, Process and Technology to Customer Loyalty
Test results of influence between the aspect processes to
customer loyalty
ANOVAb
Based on the table 1 that the influence of the variable
aspect of the process (X2) on customer loyalty (Y1) is
calculated with a coefficient of determination (R2) was 0.772.
This shows the strong influence of the aspects of the process to
customer loyalty. While significant levels (measured by
probability) give the figure 0,001. Because the probability is
much below 0.05, then the influence of the aspect of the
process towards a significant customer loyalty. Based on table
3 of the ANOVA test or t test, was obtained t count is 3.369 to
0.001 due to a significant level of probability (0.000) is much
smaller than 0.05, so the regression model can be used to
predict customer loyalty.
Model
Sum of
Squares
df
Mean
Square
Regression
766.780
3
255.593
Residual
226.797
67
3.385
Total
993.577
70
a.
Predictors: (Constant), X3, X1,X2
1
F
Sig.
75.507
.000a
b
Dependent Variable: Y1
Table 3: Test Result of influence between the aspect
people of customer loyalty
Model
Coefficientsa
Unstandardized StandardiCoefficients
zed Coefficients
B
Std.
Beta
Error
(Constant) 32.125
3.003
X1
.303
.049
.454
X2
.189
.058
.258
X3
.201
.042
.345
a
Dependent Variable: Y1
t
Sig.
Table 3 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.189 X2
Description: X2 = Aspects process; Y1 = Customer loyalty
.000
.000
.001
.000
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of the process (X2) the value of
customer loyalty (Y) is 32,125. Regression coefficient of 0.189
states that each additional score or value aspects of the process
will provide increased customer loyalty by 0.189.
Test Result of influence between the aspect people of
customer loyalty
Based on the calculation of the value t test > t table or
3.369> 1.670, and 0.001 sig value or probability is much below
0.05, then Ho is rejected means regression coefficient
significant or significant influence over the process aspect.
1
10.697
6.153
3.389
4.846
Table 3 describes the level of influence between the
variables of the aspect people (X1) on customer loyalty (Y)
which is calculated by the coefficient of determination (R2)
was 0.772. This indicates a strong influence on the aspect
people of customer loyalty. While significant levels (measured
of probability) gives the figure of 0.000. Because the
probability is much below 0.05, then the influence of the aspect
people of customer loyalty significantly. Based on table 3 of
the ANOVA test or t test, was obtained t test was 26.121 with
because the probability of a significant level of 0.000 is much
smaller than 0.05, so the regression model can be used to
predict customer loyalty.
Table 3 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.303 X1
Description: X1 = Aspect people; Y1 = Customer loyalty
Test results of influence between the aspects technological
of customer loyalty
Based on the table 1 that the influence between the
variables of the technological aspects (X3) on customer loyalty
(Y1) is calculated with a coefficient of determination (R2) was
0.772. This shows the strong influence of the technological
aspects of customer loyalty. While significant levels (measured
by probability) give the figure of 0.000. Because the
probability is much below 0.05, then the influence of the
technological aspects of customer loyalty significantly. Based
on table 3 of the ANOVA test or t test, was obtained t count is
4.846 to 0.001 due to a significant level of probability (0.000)
is much smaller than 0.05, so the regression model can be used
to predict customer loyalty.
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of people (X1), then the value of
customer loyalty (Y1) is 32,125. Regression coefficient for
0.303menyatakan that each additional score or the value of the
aspect people will provide increased customer loyalty by
0.303.
Description: X3 = Aspects of technology; Y = Customer
loyalty
Based on the calculation of the value, it can be said that
Ho is rejected. Because t test > t table = 6.153 > 1.670. Seen in
the sig column in the table is 0.000 or probability values far
below 0.05. Because t test > t table or 6.153> 1.670, then Ho is
rejected it means a significant regression coefficient or the
aspect people significant direct effect on customer loyalty.
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of technology (X3) then the value
of customer loyalty (Y1) is 32,125. A regression coefficient of
0.201 states that each additional score or value aspects of the
process will provide increased customer loyalty by 0,201.
Table 4 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.201 X3
Based on the calculation of the value t test > t table or
4.846> 1.670, and sig 0,000 or probability is much below 0.05,
34
Journal of International Business Research and Marketing
then Ho is rejected means regression coefficient significant or
technological aspects significant influence.
People, process and technology on customer loyalty in the
Brangkal Offset.
Test results of influence between the aspects people,
process and technology of customer loyalty
By analyzing the effect of customer relationship
management. That include: aspect people, process and
technology on customer loyalty is expected to be able to gain
an understanding of the process through customer relationship
management that management. That include: Aspect people,
process and technology by management and its effect on
customer loyalty in the Brangkal offset. In this research linking
the four variables proposed in the conceptual model. Four of
these variables include: the independent variables people,
process and technology and the dependent variable customer
loyalty. The indicators of the four variables were identified, all
eligible both validity and reliability. In this study discovered
the influence of variables management. That customer
relationship include: Aspect people, process and technology on
customer loyalty in Brangkal Offset as test results of the
regression analysis model. An explanation of the effect of
customer relationship management include aspect people,
process and technology on customer loyalty in Brangkal Offset
is as follows:
Based on the table 1 that the influence between the
variables of the aspect people (X1), aspects of the process (X2)
and technological aspects (X3) on customer loyalty (Y1) is
calculated with a coefficient of determination (R2) was 0.772.
This suggests a strong influence on the aspect people, process
and technology aspects of the customer loyalty. While
significant levels (measured by probability) give the figure of
0.000. Because the probability is much below 0.05, then the
effect of jointly between the aspect people, the aspect of the
process and technology aspects of the customer loyalty
significantly.
According to the table 2 of the ANOVA test or f test, was
obtained f test was 75.507 with a significant level of 0.000 for
the probability (0.000) is much smaller than 0.05, which means
the aspect people, aspects of the process and technology
aspects have a significant effect on customer loyalty.
Effect of the aspect people of customer loyalty
From Table 3 illustrates that the regression equation as
follows:
Y1 = 32,125 + 0.303 X1 + 0.182 X2 + 0.201 X3
Description: X1 = Aspect people; X2 = Aspects process;
X3 = Aspects of technology; Y1 = Customer loyalty
Constants of 32.125 states that if there is no increase in the
value of the variable aspect people (X1), aspects of the process
(X2) and technological aspects (X3), then the value of
customer loyalty (Y) is 32,125. Regression coefficient for the
aspect people of 0,303menyatakan that each additional score or
the value of the aspect people will provide increased customer
loyalty by 0.303. While the regression coefficient for the
aspects process of 0.189 states that each additional score or
value aspects of the process will provide increased customer
loyalty by 0.189. While the regression coefficient for the
aspects technological of 0.201 states that each additional score
or value aspects of technology will provide improved customer
loyalty amounted to 0.201. When viewed from three aspects,
aspects people, aspects of the process and technology aspects
that most influence on customer loyalty is the aspects people of
the coefficient for 0,303 second sequence is technological
aspects with a coefficient of 0.201 and the third is the aspect of
the process with a coefficient of 0.189.
5. Discussion
In this section we will discuss the research findings are
described in the previous section. The discussion be based on
empirical findings and theories and previous research relevant
to the research conducted. This discussion is intended to
explain the relationship between the independent variables and
the dependent variable. Based on the test using SPSS 16.0 for
Windows through regression analysis, the results of testing the
validity and reliability of the research instrument produces
valid and reliable instrument. Results of this study to answer
that very good regression analysis model to explain the effect
of customer relationship management. That include: aspect
Through regression analysis found that customer loyalty is
influenced by aspect people. Based on the above test results
obtained that all the indicators used as a measure of the
variable in explaining aspect people, namely: enthusiastic,
knowledge, skills, friendliness and responsiveness of
employees together can be used as a measurement variable
aspect people.
It can be concluded that the results of testing by regression
analysis through SPSS 16.0 shows that the aspect people that
include indicators of enthusiasm, knowledge, skills,
friendliness and responsiveness to spur employees to improve
customer satisfaction and therefore contributes to customer
loyalty. These findings Sedana with Battor (2010) that
developed a close relationship with the customers improve the
company's ability to innovate. Thereby increasing customer
satisfaction and ultimately have an impact on customer loyalty.
These findings are also in accordance with what is presented in
Tjiptono (2003: 95) the creation of customer satisfaction can
provide several benefits, including the relationship between
companies and consumers to be harmonious, provide a good
foundation for repeat purchases and create customer loyalty
and provide recommendations by word of mouth (word-ofmouth) that benefit enterprises. At the consumers are basically
all the same, regardless of the money they spend, regardless of
the products they buy, they have the right to get the best
service. If they are disappointed, they will not hesitate to vilify
companies in front of many people. One indicator of the level
of customer satisfaction is a 'repeat order'. If consumers are
satisfied when buying a product for the first time, they will
come again to buy it at a greater amount than the first order.
Effect of the process aspect of customer loyalty
Based on the results of the regression analysis found that
customer loyalty is influenced by aspects of the process. Based
on the above test results obtained that all the indicators used as
a measure in explaining aspects of the process variables,
namely: identification, differentiation, interaction and
personalization together capable of being used as a
35
Journal of International Business Research and Marketing
measurement variable aspects of the process. It can be
concluded that the test results and regression analysis through
SPSS 16.0 indicates that aspects of the process including
identification, differentiation, interaction and personalization
can be a positive influence on customer loyalty.
These findings show that the results are in line with what is
mentioned by Edward (2010) which states that the process of
analysis, operations, and the ability of both analytical
capabilities, increase profitability, maximize customer
relationships, operational capability, cut in the booking process
can reduce costs so as to increase sales. In terms of processes
and procedures, companies should define more clearly the
target market targeted and procedures in more detail in serving
consumers. It is important that employees who deal directly
with consumers to have clear rules about how to serve their
customers. Moreover, one thing that is how companies connect
between customer satisfaction with employee performance.
That is not only a slogan and jargon, but the customer service
process into a system that must be exercised by all employees.
Effect on the technological aspect of customer loyalty
Based on regression analysis found that customer loyalty is
influenced by technological aspects. Based on the above test
results obtained that all the indicators used as a measure of the
variable in explaining technological aspects, namely: speed,
confidence and satisfaction of use of technology together can
be used as measurement variable technological aspects. It can
be concluded that the test results and regression analysis
through SPSS 16.0 indicates that the aspect of technologies
that includes speed, confidence and satisfaction of the use of
technology can be a positive effect on customer loyalty.
These findings show that the results are in line with what
was mentioned by Prasad (2008) examined the effect of
relational marketing attributes such as trust, commitment,
communication that can affect customer loyalty. With
customer relationship management applications, we can do the
sales and service via the web so the chance of global sales
without the need to provide a special effort to support the sales
and service. Internet enables remote communication and global
nature, so that the company and its customers or potential
customers can interact without being limited by time and place.
Through the utilization of the Internet, a company can reach
consumers on a global scale with limited capital, and conduct
business activities such as promotion, product introduction,
product description, product price to sales transactions that can
be more indulgent products consumers.
In addition the company can perform an analysis of the
customer based on specific criteria such as the analysis can be
generated very diverse based on the data of incoming
information, in the form of questions, complaints, or
suggestions customers often helps the company to improve its
products and services. Can display a warning or reminder as
say happy birthday earlier than the partner or customer contacts
so as to make the customer flattered, this is one example of the
usefulness warming or reminder on the customer relationship
management system. Not limited only to pamper the customer,
warning, or a reminder can also be used to remind the customer
on certain events, such as due date product / service specific, it
will help facilitate business activities so that the company can
build a relationship that is directly with the consumer (direct
marketing).
Effect of the aspects people, process and technology to the
Customer loyalty
Based on regression analysis found that customer loyalty is
influenced by aspect people, Based on the above test results
obtained that all the indicators used as a measure of the
variable in explaining aspect people, aspects of the process and
technology aspects together can be used as a measurement
variable. It can be concluded that the test results and regression
analysis through SPSS 16.0 shows that the aspect people,
aspects of the process and technology aspects together
influence on customer loyalty.
These findings are in line with Kotler and Keller (2007:
189), Customer relationship management is "the process of
managing detailed information about individual customers and
carefully managing all customer touch points in order to
maximize customer loyalty". Customer relationship
management applications provide information can increase
revenues and profits. Customer relationship management can
do sales and service via the web so the chance of global sales
without the need to provide a special effort to support the sales
and service. Additionally customer relationship management
enables companies to leverage information from all points of
contact with customers, whether it is via web, call center, or
through enabling sales staff or service at a cheaper cost.
Automation of sales and service processes can reduce the risk
of decline in the quality of services and reduce the burden on
cash flow. The use of web technology and a call center, for
example, will reduce red tape and costs as well as
administrative processes that may arise. With sales capability
via the web, then the barriers of time, geography, until the
availability of data sources can be ruled out to accelerate the
sale of such products. This is done by Brangkal Offset
Mojokerto in increasing sales and improving customer loyalty.
6. Conclusion
From the results of research and discussion of the influence
of customer relationship management to customer loyalty can
conclude that customer relationship management is needed by
the company on the grounds: First, it is a change of Production
Driven Company into shape Customer Driven Company. These
changes occur because the customer who will decide which
companies will be chosen based on the company's ability to
meet the needs of its customers. Second, the customer
determines a business organization that must be managed.
Without customers a business may not be able to walk.
Therefore, the customer must be managed properly so that
customers be satisfied, and be loyal to the company. Third, the
customer has a need or preference which different from one
another. Customer relationship management to know that
different customers representing the value of the company are
also different. Thus, the purpose of customer relationship
management is the customer knows best and believes the
company will increase the understanding of their needs as
individuals, to meet their expectations, and make their lives
changed. Fourth, the cost to acquire customers 6 to 7 times
more than the cost to maintain it, meaning that each customer
has its own uniqueness, they have the desire, the demand,
which different capabilities and characteristics, so knowing
who the customer are an obligation. While the last / fifth,
customer relationship management is not just serving, with the
database, the company should be able to serve its customers
better. A good customer relationship management should be
36
Journal of International Business Research and Marketing
able to provide emotional value besides relations benefit to the
customer.
References and notes
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Bettor, Moustafa, 2010. The impact of customer relationship
management capability on innovation and performance
advantages, Tanta University, Egypt Journal of Marketing
Management Vol. 26, Nos. 9-10, August, 842-857.
Borle, Sharad; Singh, Siddharth S.; Jain, Dipak C. 2008, Customer
Lifetime Value Measurement, Management Science, Vol.54 No.
21, pp. 100-112
Buchari Alma 2004, Marketing Management and Marketing
Services, Bandung: Alfa beta.
Edward CS, 2010. The impact of customer relationship
management through implementation of information systems,
Department of Travel Management, National Kaohsiung
University of Hospitality and Tourism, Taiwan, Republic of China
Total Quality Management Vol. 21, No. 11, November,
1085¬1102
Frederick Herzberg 2000, Organizational Behavior, Tenth Edition,
New Jew Jersey: Prentice Hall Griffin, J, 2005, Customer Loyalty,
Lexington Books, New York.
Prasad JS and AR Aryasri, 2008. Versus Relationship Marketing
Relationship Quality and Customer Loyalty In Food Retailing,
Pranjanavol 11, No 2,
Philip Kotler & Kevin Lane Keller (2007). Marketing
Management. 13th edition. Pearson, Prentice Hall
Krasnikov Alexander, SatishJayachandran, and V. Kumar, 2009.
The Impact of Customer Relationship Management
Implementation on Cost and Profit Efficiencies: Evidence from
the US Commercial Banking Industry, Journal of Marketing Vol.
73 (November), 61-76
Luke, Paul Ade, 2001 Seminar Papers: Customer and Partner
Relationship Management, Telematic Research Group.
Philip Kotler and Kevin Lane Keller, Interpreting Benjamin
Molan, 2007, Marketing Management, Twelfth Edition, Volume
1, PT. Index.
PurnamaChamdan and RahmahMihamida, (2014) Empowering
Small Industry in Improving Business Success, Lap Lambert
Academic Publishing, Saarbrucken Germany
Sugiyono 2008, Statistics for Business Research, Bandung:
Alfabeta.
TjiptonoFandy, 2000, Marketing Strategy, Yogyakarta: Andi
Offset.
Umar, Husein, 2002, the Marketing Research and Consumer
Behavior, Jakarta: GramediaPustakaUtama.
Usmara, A, 2003, the New Strategy Marketing Management,
Amoro Book, Yogyakarta
Widjaja Amin Tunggal 2008, Customer Relationship Management
(Concept and Case), Jakarta: Harvarindo
Journal of International Business Research and Marketing
Volume 1, Issue 1, November, 2015
journal homepage: www.researchleap.com
Importance of Customer Relationship Management in Customer Loyalty (Brangkal
Offset of East Java, Indonesia)
Chamdan Purnamaa
a
President School of Economics, Al-Anwar Mojokerto, Indonesia
ABSTRACT
2015 Research Leap/Inovatus Services Ltd.
All rights reserved.
This study examines the importance of customer relationship management to increase
customer loyalty. Study uses two years’ data on 71customer (respondents)of Brangkal Offset
chosen on the basis of random samplingtechnique. Results of this investigation indicate that
important aspects of customer relationship management those are people, process and
technology both partially and simultaneously have an impact on the increase of customer
loyalty.
Keywords:
Customer relationship management
Customer loyalty
Indonesia
1. Introduction
The business strategy is currently focused on the creation of a
trust or confidence of customers to the company. The customer
is a very valuable asset for the company.If the company loses
its customers, it will not only lose its profit, but also its
possible sales that may happen in the future will be in at risk.
Acquired loyal customers are the biggest advantage of
thecompany becausethe company can sell more goods or
services to those loyal customers who have already tried the
relevant goods or services of the company and formed some
knowledge on them. Besides, the company has spent a lot of
effort to establish a relationship with the customer.
The best way to build relationships with customers can be
realized by building a customer relationship management.
Customer relationship management is a type of management
that specifically discusses the theory about the handling the
relationship between the company and its customers with the
goal of increasing the company's value in the eyes of its
customers. Customer relationship management embraces all
aspects of dealing with prospective and current customers,
including the call center, sales force, marketing, technical
support and field service. As the wording implies, customer
relationship management is an activity aimed at obtaining a
relationship with the customer to be able to provide a
significant advantage for the company.
Research conducted in Taiwan for 58 hotels analyze
customer relationship management in the form of operational
processes by Edward (2010) states that the operational
processes both increase profitability and maximize customer
relationships and operational capabilities can accelerate the
process of customer ordering. Research conducted by Borle et
al (2010) showed that the customer community management
program can increase the number of customers the
companytargets.
Research in the US by Krasnikov (2009) conducted on
commercial bank ofthe US examines the impact of the
implementation of customer relationship management in two
company's performance, operational performance, cost
efficiency and their ability to generate profit (profit efficiency).
Results of the study found that implementation of customer
relationship management improve cost efficiency and increase
profits.
The results of the research conducted in Egypt by Battor
(2010) reinforces the view that developing good relationships
with customers can improve a company's ability to innovate.
Relationship with customers is one indicator of customer
relationship management.
Purnama (2014: 242) in his study conducted in Indonesian
small clothing industrystates that attitude, intelligence,
emotion, skills and knowledge of employees altogether can
influence the ability of the employee. Results of this study
prove that the skills and knowledge of employees affect the
ability of businesses in the works and will also increase
production.
Prasad (2008) examined the effect of relational marketing
attributes such as trust, commitment, communication, empathy,
and conflict on relationship quality and customer loyalty. The
study was conducted on 300 customers of retail companies in
31
Journal of International Business Research and Marketing
India. The research proves that the quality of relationships has
a significant effect on customer loyalty.
Few studies conducted in Taiwan, the US, India, Egypt and
Indonesia are related to customer relationship management and
customer loyalty relationship. Through customer relationship
managementcompanies can build closer relationships with
customers, and the company can learn the needs of customers
and provide a selection of products or services in accordance
with their request. As expressed by Kotler and Keller (2007:
189), customer relationship management is “the process of
managing detailed information about individual customers and
carefully managing all customer touch points in order to
maximize customer loyalty”. This study is quite the same with
other studies. The distinguishing feature of this study is that
previous studies looked at the performance in terms of costs,
the ability to innovate and company's profits and customer
relationships and they were carried on the example of retail,
food, hospitality and banks. This study has been carried out in
the example of an offset servicecompanyto measure its
performance in terms of customer loyalty.
At the core of customer relationship management, there is a
way to analyze customer behavior. From this analysis, the
company can finally be able to take ways how to serve
customers in a more personalized way so that customers
become loyal to the company. To be able to maintain a loyal
customer and in order not to lose them to a competitor, the
company should establishgood relationship with the customers
and should try toincrease company's value in the eyes of its
customers. This endeavor requires a precise and efficient
strategy from the company to know its customers betterto serve
them better. Customer relationship management is not a
new,recently invented conceptby consultant’s world. Customer
relationship management is a fundamental paradigm of how to
look at the customer and how to better satisfy customers
through a harmonious relationship and quality.
2. Literature Review
2.1. Customer Relationship Management
According to Widjaja (2008: 45), customer relationship
management is a comprehensive approach to create, maintain,
and developrelationships with customers. According to Buchari
(2004: 271),customer relationship management is a process to
acquire, retain and grow the most profitable customers.
According to Frederick (2000: 2),customer relationship
management is the process of modifying consumer behavior
over time and learning from each interaction, change, taking
care of customers, and strengthening ties with them. According
to understanding of the customer relationship management by
Luke (2001:3), it is “an activity that involves the entire human
resources to retain existing customers; a strategy to cultivate
and maintain relationships with customers; an attempt to
determine the wants and needs of customers”.
Based on a variety of definition ofcustomer relationship
management from above, it can be concluded that customer
relationship management is a business strategy of the company
to establish relationships with customers and provide
satisfactory services
for
customers.
Luke
(2001:
116)dividesthree main components, namely: People, Process
and Technologyof customer relationship management into
2.1.1. People
In this case the employee has a very important role in the
sustainability of the implementation ofcustomer relationship
management, because they are implementing customer
relationship management as an activity or desire ne companies.
With the implementation of customer relationship management
has been a change in marketing paradigm, when previously, the
production becomes the main focus in the implementation of
customer relationship management, the customer is the main
focus. As for what needs to be addressed from a aspect people
is the enthusiasm, knowledge, skills, friendliness, and
responsiveness to the customer's own employees.
2.1.2. Process
Implementation of customer relationship management
changes the complete business processes that have been in
place for a long time. It changes both business processes that
directly involve customers or not. On the whole, customer
relationship management business functionality is focused on
the customer. Customer relationship management process
includes:
1. Identification: Identification of customers and prospects
based on existing data, customers who are profitable, he lived
where and why he was favorable. Most companies only care
how big the benefits of its customers without knowing who are
the customers that have been profitable. There are a few things
to know about the customer such as: (a) Firm graphic: namely
information about customers or companies that do business
with us. Such as: address, business, zip code and so on. (b)
Demographic and psychographic: the information concerning
contact person (customers). (c) Info graphic: how to contact
Pearson wanted a way of interaction in obtaining information
about him.
2. Differentiation: Segment customers based on behavior,
demographics, and customer expectations.
3. Interaction: Make the best plan for interacting with
customers, and then create customer loyalty programs,
crossselling, and so on. The longer the interaction occurs, the
more know each other, the more reluctant customers moving to
competitors because customers will find it hard to start a new
relationship with a competitor. Interaction can be done by
email, telephone and fax, mail, and face to face.
4. Personalization: Products and loyalty programs tailored
to the wishes of customers who continuously. Using all the
information that has been obtained prior to making goods and
services in accordance with the wishes and needs of customers.
2.1.3. Technology
Technology has a role in customer relationship
management. Firstly, it is building a data base ofcustomers
ranging from the operating system up to the transaction.
Secondly, to analyze who the customer is themost good; he
bought what, how often. Third, implement the activities of
sales, marketing, and customer service by integrating different
communication channels (operational customer relationship
management).
32
Journal of International Business Research and Marketing
Customer loyalty has an important role in a company, the
longer the company maintains a loyal customer, the greater the
profit generated. This is the main reason for a company to
retain customers. When companies spend less in order to
obtain new customers, the company can also spend money to
improve the quality of products or services continuously. In
turn, it also can help make customers become more loyal.
Having a loyal customer is the ultimate goal of all
companies, but most companies do not realize that customer
loyalty is formed through the stages starting from looking for
potential customers to the Customer Advocate will bring
benefits to the company. Customer loyalty according to Griffin
(2005: 4) is: "Customer loyalty is defined purchasing buying
behavior nonrandom disclosed from time to time by some of
the decision-making unit". According to Tjiptono (2000: 110)
says that: "Customer loyalty as a customer commitment to a
brand, the store, the supplier is based on a very positive attitude
and reflected in repeat purchases consistent." Meanwhile,
according to Widjaja (2008: 6), customer loyalty is attachment
to a brand, store, manufacturer, service provider, or other entity
based on a favorable attitude and a good response as repeat
purchases".
From the above definition, it can be concluded that the
more loyalty leads to behavior (behavior) compared with an
attitude (attitude) and a loyal consumer purchasing behavior
will exhibit behavior that is defined as the purchase of a regular
and behaviors throughout the show by the decision maker.
Loyal customer is an asset to the company and to determine
the company's loyal customers to be able to offer products or
services that can meet customer expectations and satisfy its
customers, when customers make a purchase action repeatedly
and regularly then the customer is a loyal customer. This is
reinforced by the statement of Griffin (2005: 31), which states
that the characteristics of loyal customers include:
Make purchases on a regular basis or regular.
Buying outside the line of products or services.
Recommend to others.
Not easily affected competitor product appeal.
3. Research Methods
This study is classified as explanatory research. Approach
to research using correlation design. Draft correlation is useful
to analyze the relationship between one variable to another
variable, or how a variable affects other variables. The study
population was Brangkal Offset customers since the last two
years as many as 250 customers. Usage sample technique is to
use simple random sampling. The size of the sample to be
studied using questionnaires as the data collection tool
according to population numbers mentioned above, which
amounted to 250 people, while the determination of the
number of samples is done by using the formula of Slovin
Umar (2002: 146). Based on the calculation of the number of
members of the sample in this study were 71 respondents. In
this study the analysis of the test data validity, reliability and
classical assumption of all items of questions (instruments) as
well as multiple regression analysis to see the effect by using
SPSS for Windows version 16.0.
Model equations to see the influence of variables customer
relationship management, which include: Aspects People,
process and Technology on customer loyalty are as follows:
Y1 = a + β1X1 + β2X2 + β3X3
Description: Y1 = Customer Loyalty, a = Constanta, X1 =
Aspects People, X2 = Aspects Process, X3 = Aspects
Technology, (β1, 2, 3, = Coefficient that describes the path of
the influence of the independent variables to the dependent
variable
4. Results
4.1. Test Results of Validity and Reliability
The test results question the validity of the entire item
(instrument) study of samples collected and processed using
SPSS analysis tools 16:00 prove that all items are valid
questions. The analysis showed that all items have a question
of correlation greater than 0.40 and have significant value
Pearson smaller than α (0.05). Thus, all the indicators used to
dig respondents on variables customer relationship
management which include: the aspect people, process and
technology and customer loyalty is valid.
While the reliability test results that have been performed
using SPSS 16.0 analysis tool of data that can be collected, it is
known that the value of Cronbach’s alpha all variables in this
study is greater than 0.70 so it can be said that the reliability is
acceptable even better. Thereby, it can be concluded that the
results of measurements that have been done are reliable for
further analysis.
4.2. Test Results of Regression Analysis
In this regression test in addition to looking for the
coefficient of determination can also be used to test the
hypothesis, testing the hypothesis with a simple regression and
t test with the rules t test >_ t table rejected significant
meaning, and if t test >_ t table Ho is accepted, it means
insignificant. Testing this hypothesis using regression 3
doubles, and regression testing and f test, with the rules f test
>_ f table Ho rejected significant meaning, and if f test >_ f
table Ho is accepted, it means insignificant.
Test results of regression statistical analysis tools SPSS
version 16.0, to examine the effect of customer relationship
management. Which include: (X1) People, (X2) Process and
(X3) Technology on customer loyalty (Y1) like the following
table:Table 1: Coefficient of Determination the influence of
Aspects People, Process and Technology to Customer Loyalty
Table 2: Result of ANOVA; the influence of Aspects
People, Process and Technology to Customer Loyalty
Model Summary
Model
R
R Square
Adjusted R
Square
1
.0878a
.772
.762
Std. Error
of the
Estimate
1.83985
33
Journal of International Business Research and Marketing
Table 3: Test Result Coefficient the influence of Aspects
People, Process and Technology to Customer Loyalty
Test results of influence between the aspect processes to
customer loyalty
ANOVAb
Based on the table 1 that the influence of the variable
aspect of the process (X2) on customer loyalty (Y1) is
calculated with a coefficient of determination (R2) was 0.772.
This shows the strong influence of the aspects of the process to
customer loyalty. While significant levels (measured by
probability) give the figure 0,001. Because the probability is
much below 0.05, then the influence of the aspect of the
process towards a significant customer loyalty. Based on table
3 of the ANOVA test or t test, was obtained t count is 3.369 to
0.001 due to a significant level of probability (0.000) is much
smaller than 0.05, so the regression model can be used to
predict customer loyalty.
Model
Sum of
Squares
df
Mean
Square
Regression
766.780
3
255.593
Residual
226.797
67
3.385
Total
993.577
70
a.
Predictors: (Constant), X3, X1,X2
1
F
Sig.
75.507
.000a
b
Dependent Variable: Y1
Table 3: Test Result of influence between the aspect
people of customer loyalty
Model
Coefficientsa
Unstandardized StandardiCoefficients
zed Coefficients
B
Std.
Beta
Error
(Constant) 32.125
3.003
X1
.303
.049
.454
X2
.189
.058
.258
X3
.201
.042
.345
a
Dependent Variable: Y1
t
Sig.
Table 3 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.189 X2
Description: X2 = Aspects process; Y1 = Customer loyalty
.000
.000
.001
.000
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of the process (X2) the value of
customer loyalty (Y) is 32,125. Regression coefficient of 0.189
states that each additional score or value aspects of the process
will provide increased customer loyalty by 0.189.
Test Result of influence between the aspect people of
customer loyalty
Based on the calculation of the value t test > t table or
3.369> 1.670, and 0.001 sig value or probability is much below
0.05, then Ho is rejected means regression coefficient
significant or significant influence over the process aspect.
1
10.697
6.153
3.389
4.846
Table 3 describes the level of influence between the
variables of the aspect people (X1) on customer loyalty (Y)
which is calculated by the coefficient of determination (R2)
was 0.772. This indicates a strong influence on the aspect
people of customer loyalty. While significant levels (measured
of probability) gives the figure of 0.000. Because the
probability is much below 0.05, then the influence of the aspect
people of customer loyalty significantly. Based on table 3 of
the ANOVA test or t test, was obtained t test was 26.121 with
because the probability of a significant level of 0.000 is much
smaller than 0.05, so the regression model can be used to
predict customer loyalty.
Table 3 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.303 X1
Description: X1 = Aspect people; Y1 = Customer loyalty
Test results of influence between the aspects technological
of customer loyalty
Based on the table 1 that the influence between the
variables of the technological aspects (X3) on customer loyalty
(Y1) is calculated with a coefficient of determination (R2) was
0.772. This shows the strong influence of the technological
aspects of customer loyalty. While significant levels (measured
by probability) give the figure of 0.000. Because the
probability is much below 0.05, then the influence of the
technological aspects of customer loyalty significantly. Based
on table 3 of the ANOVA test or t test, was obtained t count is
4.846 to 0.001 due to a significant level of probability (0.000)
is much smaller than 0.05, so the regression model can be used
to predict customer loyalty.
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of people (X1), then the value of
customer loyalty (Y1) is 32,125. Regression coefficient for
0.303menyatakan that each additional score or the value of the
aspect people will provide increased customer loyalty by
0.303.
Description: X3 = Aspects of technology; Y = Customer
loyalty
Based on the calculation of the value, it can be said that
Ho is rejected. Because t test > t table = 6.153 > 1.670. Seen in
the sig column in the table is 0.000 or probability values far
below 0.05. Because t test > t table or 6.153> 1.670, then Ho is
rejected it means a significant regression coefficient or the
aspect people significant direct effect on customer loyalty.
Constants of 32,125 states that if there is no increase in the
value of the variable aspect of technology (X3) then the value
of customer loyalty (Y1) is 32,125. A regression coefficient of
0.201 states that each additional score or value aspects of the
process will provide increased customer loyalty by 0,201.
Table 4 illustrates that the regression equation as follows:
Y1 = 32,125 + 0.201 X3
Based on the calculation of the value t test > t table or
4.846> 1.670, and sig 0,000 or probability is much below 0.05,
34
Journal of International Business Research and Marketing
then Ho is rejected means regression coefficient significant or
technological aspects significant influence.
People, process and technology on customer loyalty in the
Brangkal Offset.
Test results of influence between the aspects people,
process and technology of customer loyalty
By analyzing the effect of customer relationship
management. That include: aspect people, process and
technology on customer loyalty is expected to be able to gain
an understanding of the process through customer relationship
management that management. That include: Aspect people,
process and technology by management and its effect on
customer loyalty in the Brangkal offset. In this research linking
the four variables proposed in the conceptual model. Four of
these variables include: the independent variables people,
process and technology and the dependent variable customer
loyalty. The indicators of the four variables were identified, all
eligible both validity and reliability. In this study discovered
the influence of variables management. That customer
relationship include: Aspect people, process and technology on
customer loyalty in Brangkal Offset as test results of the
regression analysis model. An explanation of the effect of
customer relationship management include aspect people,
process and technology on customer loyalty in Brangkal Offset
is as follows:
Based on the table 1 that the influence between the
variables of the aspect people (X1), aspects of the process (X2)
and technological aspects (X3) on customer loyalty (Y1) is
calculated with a coefficient of determination (R2) was 0.772.
This suggests a strong influence on the aspect people, process
and technology aspects of the customer loyalty. While
significant levels (measured by probability) give the figure of
0.000. Because the probability is much below 0.05, then the
effect of jointly between the aspect people, the aspect of the
process and technology aspects of the customer loyalty
significantly.
According to the table 2 of the ANOVA test or f test, was
obtained f test was 75.507 with a significant level of 0.000 for
the probability (0.000) is much smaller than 0.05, which means
the aspect people, aspects of the process and technology
aspects have a significant effect on customer loyalty.
Effect of the aspect people of customer loyalty
From Table 3 illustrates that the regression equation as
follows:
Y1 = 32,125 + 0.303 X1 + 0.182 X2 + 0.201 X3
Description: X1 = Aspect people; X2 = Aspects process;
X3 = Aspects of technology; Y1 = Customer loyalty
Constants of 32.125 states that if there is no increase in the
value of the variable aspect people (X1), aspects of the process
(X2) and technological aspects (X3), then the value of
customer loyalty (Y) is 32,125. Regression coefficient for the
aspect people of 0,303menyatakan that each additional score or
the value of the aspect people will provide increased customer
loyalty by 0.303. While the regression coefficient for the
aspects process of 0.189 states that each additional score or
value aspects of the process will provide increased customer
loyalty by 0.189. While the regression coefficient for the
aspects technological of 0.201 states that each additional score
or value aspects of technology will provide improved customer
loyalty amounted to 0.201. When viewed from three aspects,
aspects people, aspects of the process and technology aspects
that most influence on customer loyalty is the aspects people of
the coefficient for 0,303 second sequence is technological
aspects with a coefficient of 0.201 and the third is the aspect of
the process with a coefficient of 0.189.
5. Discussion
In this section we will discuss the research findings are
described in the previous section. The discussion be based on
empirical findings and theories and previous research relevant
to the research conducted. This discussion is intended to
explain the relationship between the independent variables and
the dependent variable. Based on the test using SPSS 16.0 for
Windows through regression analysis, the results of testing the
validity and reliability of the research instrument produces
valid and reliable instrument. Results of this study to answer
that very good regression analysis model to explain the effect
of customer relationship management. That include: aspect
Through regression analysis found that customer loyalty is
influenced by aspect people. Based on the above test results
obtained that all the indicators used as a measure of the
variable in explaining aspect people, namely: enthusiastic,
knowledge, skills, friendliness and responsiveness of
employees together can be used as a measurement variable
aspect people.
It can be concluded that the results of testing by regression
analysis through SPSS 16.0 shows that the aspect people that
include indicators of enthusiasm, knowledge, skills,
friendliness and responsiveness to spur employees to improve
customer satisfaction and therefore contributes to customer
loyalty. These findings Sedana with Battor (2010) that
developed a close relationship with the customers improve the
company's ability to innovate. Thereby increasing customer
satisfaction and ultimately have an impact on customer loyalty.
These findings are also in accordance with what is presented in
Tjiptono (2003: 95) the creation of customer satisfaction can
provide several benefits, including the relationship between
companies and consumers to be harmonious, provide a good
foundation for repeat purchases and create customer loyalty
and provide recommendations by word of mouth (word-ofmouth) that benefit enterprises. At the consumers are basically
all the same, regardless of the money they spend, regardless of
the products they buy, they have the right to get the best
service. If they are disappointed, they will not hesitate to vilify
companies in front of many people. One indicator of the level
of customer satisfaction is a 'repeat order'. If consumers are
satisfied when buying a product for the first time, they will
come again to buy it at a greater amount than the first order.
Effect of the process aspect of customer loyalty
Based on the results of the regression analysis found that
customer loyalty is influenced by aspects of the process. Based
on the above test results obtained that all the indicators used as
a measure in explaining aspects of the process variables,
namely: identification, differentiation, interaction and
personalization together capable of being used as a
35
Journal of International Business Research and Marketing
measurement variable aspects of the process. It can be
concluded that the test results and regression analysis through
SPSS 16.0 indicates that aspects of the process including
identification, differentiation, interaction and personalization
can be a positive influence on customer loyalty.
These findings show that the results are in line with what is
mentioned by Edward (2010) which states that the process of
analysis, operations, and the ability of both analytical
capabilities, increase profitability, maximize customer
relationships, operational capability, cut in the booking process
can reduce costs so as to increase sales. In terms of processes
and procedures, companies should define more clearly the
target market targeted and procedures in more detail in serving
consumers. It is important that employees who deal directly
with consumers to have clear rules about how to serve their
customers. Moreover, one thing that is how companies connect
between customer satisfaction with employee performance.
That is not only a slogan and jargon, but the customer service
process into a system that must be exercised by all employees.
Effect on the technological aspect of customer loyalty
Based on regression analysis found that customer loyalty is
influenced by technological aspects. Based on the above test
results obtained that all the indicators used as a measure of the
variable in explaining technological aspects, namely: speed,
confidence and satisfaction of use of technology together can
be used as measurement variable technological aspects. It can
be concluded that the test results and regression analysis
through SPSS 16.0 indicates that the aspect of technologies
that includes speed, confidence and satisfaction of the use of
technology can be a positive effect on customer loyalty.
These findings show that the results are in line with what
was mentioned by Prasad (2008) examined the effect of
relational marketing attributes such as trust, commitment,
communication that can affect customer loyalty. With
customer relationship management applications, we can do the
sales and service via the web so the chance of global sales
without the need to provide a special effort to support the sales
and service. Internet enables remote communication and global
nature, so that the company and its customers or potential
customers can interact without being limited by time and place.
Through the utilization of the Internet, a company can reach
consumers on a global scale with limited capital, and conduct
business activities such as promotion, product introduction,
product description, product price to sales transactions that can
be more indulgent products consumers.
In addition the company can perform an analysis of the
customer based on specific criteria such as the analysis can be
generated very diverse based on the data of incoming
information, in the form of questions, complaints, or
suggestions customers often helps the company to improve its
products and services. Can display a warning or reminder as
say happy birthday earlier than the partner or customer contacts
so as to make the customer flattered, this is one example of the
usefulness warming or reminder on the customer relationship
management system. Not limited only to pamper the customer,
warning, or a reminder can also be used to remind the customer
on certain events, such as due date product / service specific, it
will help facilitate business activities so that the company can
build a relationship that is directly with the consumer (direct
marketing).
Effect of the aspects people, process and technology to the
Customer loyalty
Based on regression analysis found that customer loyalty is
influenced by aspect people, Based on the above test results
obtained that all the indicators used as a measure of the
variable in explaining aspect people, aspects of the process and
technology aspects together can be used as a measurement
variable. It can be concluded that the test results and regression
analysis through SPSS 16.0 shows that the aspect people,
aspects of the process and technology aspects together
influence on customer loyalty.
These findings are in line with Kotler and Keller (2007:
189), Customer relationship management is "the process of
managing detailed information about individual customers and
carefully managing all customer touch points in order to
maximize customer loyalty". Customer relationship
management applications provide information can increase
revenues and profits. Customer relationship management can
do sales and service via the web so the chance of global sales
without the need to provide a special effort to support the sales
and service. Additionally customer relationship management
enables companies to leverage information from all points of
contact with customers, whether it is via web, call center, or
through enabling sales staff or service at a cheaper cost.
Automation of sales and service processes can reduce the risk
of decline in the quality of services and reduce the burden on
cash flow. The use of web technology and a call center, for
example, will reduce red tape and costs as well as
administrative processes that may arise. With sales capability
via the web, then the barriers of time, geography, until the
availability of data sources can be ruled out to accelerate the
sale of such products. This is done by Brangkal Offset
Mojokerto in increasing sales and improving customer loyalty.
6. Conclusion
From the results of research and discussion of the influence
of customer relationship management to customer loyalty can
conclude that customer relationship management is needed by
the company on the grounds: First, it is a change of Production
Driven Company into shape Customer Driven Company. These
changes occur because the customer who will decide which
companies will be chosen based on the company's ability to
meet the needs of its customers. Second, the customer
determines a business organization that must be managed.
Without customers a business may not be able to walk.
Therefore, the customer must be managed properly so that
customers be satisfied, and be loyal to the company. Third, the
customer has a need or preference which different from one
another. Customer relationship management to know that
different customers representing the value of the company are
also different. Thus, the purpose of customer relationship
management is the customer knows best and believes the
company will increase the understanding of their needs as
individuals, to meet their expectations, and make their lives
changed. Fourth, the cost to acquire customers 6 to 7 times
more than the cost to maintain it, meaning that each customer
has its own uniqueness, they have the desire, the demand,
which different capabilities and characteristics, so knowing
who the customer are an obligation. While the last / fifth,
customer relationship management is not just serving, with the
database, the company should be able to serve its customers
better. A good customer relationship management should be
36
Journal of International Business Research and Marketing
able to provide emotional value besides relations benefit to the
customer.
References and notes
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