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Scientium Management Review

ISSN : 2962-8328
E-ISSN : 2962-6323
Pp : 73-86
Volume 1 No 2 2022

THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON


CUSTOMER LOYALTY AND CUSTOMER SATISFACTION AT SAUNG RINDU ALAM
RESTAURANTS IN GOWA DISTRICT SOUTH SULAWESI

Nurul Athirah Imran1*, Muh. Asdar2, Mahlia Muis2,


1Magister Management, Faculty of Economics and Business, Hasanuddin University E-mail:
nurulathira33@yahoo.co.id
2 Faculty of Economics and Business, Hasanuddin University; E-mail: masdar.ickn@gmail.com
2 Faculty of Economics and Business, Hasanuddin University; E-mail: mahliamuis@fe.unhas.ac.id

Abstract
One good strategy to retain customers is Customer Relationship Management (CRM).
CRM focuses more on what customers value, not on the products the company wants
to sell. Through the implementation of CRM, companies are expected to be able to
build good communication and relationships with their customers. Consumer
satisfaction is an important factor in creating loyalty, by feeling satisfied with a
product, consumers will automatically return to buy and consume the product. In the
end, this is expected to be the main driver for achieving the company's own profits,
where when consumers are loyal to a product, of course it will encourage continuous
product sales because the biggest profits are obtained by the company from loyal
customers. Therefore, this study aims to determine the effect of Customer
Relationship Management (CRM) on customer loyalty and customer satisfaction at
saung rindu alam restaurants in Gowa District, South Sulawesi. This research is
quantitative and the data collection method uses a questionnaire of 105 samples.
Methods of analysis using validity, reliability, path analysis, and hypothesis testing.
The results showed that customer relationship management has an effect on
customer loyalty, customer relationship management has an effect on customer
satisfaction, customer satisfaction has an effect on customer loyalty, and there is an
indirect effect on customer relationship management on customer satisfaction as an
intervening variable.
Keywords : customer relationship management; customer loyalty; customer
satisfaction

1. INTRODUCTION
Business development in the 21st century has developed very rapidly and
experienced an irrational metamorphosis. Every business actor in each business
category is required to be sensitive to any changes that occur and to place an
orientation towards customer satisfaction as the main goal (Kotler, 2005).

Scientium Management Review Vol. 1 no. 2 . 2022 73


Indonesia is a developing country with strong economic resilience compared to
other countries. This is evidenced by the increasingly widespread issue of the
economic crisis in various developed countries and the declining rupiah exchange
rate, which has not dampened people's purchasing power, which is still stable and
has not shown a significant decline.
This continuously increasing purchasing power of the people will of course be
accompanied by increasingly stringent and competitive business preparations.
This is what encourages business people to be more proactive and innovate both in
providing excellent products and services to gain competitive advantage in order
to win market share (Adnin, Lubis and Widayanto, 2013).
In this era of intense business competition, the number of brands and products,
both goods and services competing in the market, has become very large so that
consumers have a variety of choices and alternatives. Lupiyoadi (2013) describes
that service companies function to create new, memorable experiences for
consumers. The purpose of a new experience for consumers is a challenge for these
service companies. Intense competition and increasing consumer expectations for
a product, especially service products, companies must find ways to increase their
value proposition.
Currently, companies must begin to focus on delivering value and increasing
customer loyalty. Loyalty means that consumers return again and again to make
business transactions (purchases), even though the company's products may not
be the best on the market or have the lowest prices. This quite irrational consumer
behavior can be explained by the view that a good relationship with consumers is
the key to a company's success in retaining customers. With this intense
competition, consumers have broad opportunities to get products that are in
accordance with their wants and needs so that to fulfill this, a company must be
able to provide products that are of better quality, at a lower price (cheaper in
price), faster information (faster delivery) and better service compared to its
competitors (Imasari & Nursalin, 2011).
Consumer satisfaction is an important factor in creating loyalty, by feeling
satisfied with a product, consumers will automatically return to buy and consume
the product. In the end, this is expected to be the main driver for achieving the
company's own profits, where when consumers are loyal or loyal to a product, of
course it will encourage continuous product sales because the biggest profits are
obtained by the company from loyal customers where the company can sell goods
or services. to customers who have tried and are familiar with the goods or services
of the company concerned, the company must be able to retain these customers
(Imasari & Nursalin, 2011). Businesses in the provision of food and drink (food
service) are no exception, starting from a small scale such as tent stalls and cafes,
medium-scale food businesses such as depots, restaurants and cafes to large-scale
food businesses such as restaurants in star hotels.
The growth of the food and beverage business is still recorded as high growth in
various parts of the world (Nonto, 2006 in Dewi & Samuel, 2015). This industry has
excellent potential and prospects and can develop very quickly if properly planned,
managed and operated. This industrial sector can last forever because basically
everyone needs to eat and drink for the rest of their life (Irene, 2009 in Dewi &
Samuel, 2015). Therefore, many culinary businesses, known as restaurants, offer

74 Scientium Management Review Vol. 1 no. 2 . 2022


food and beverage products in various forms. This is because food is one of the
primary needs that must be met. In addition, this business promises big profits. The
rapid growth of the food service industry has fueled the emergence of restaurants.
With the increasing number of existing restaurants, it will lead to separate
competition between these restaurants.
Based on data from the Creative Economy Agency of the Republic of Indonesia,
the culinary sub-sector contributed 41.4% of the total creative economy
contribution of Rp. 922 trillion in 2016. This amount is the highest compared to 16
other sub-sectors in Creative Economy Agency of the Republic of Indonesia. Even
in the midst of the current contraction in economic growth, the food and beverage
industry was still able to grow by 0.22% from the previous year. Not only that, the
food and beverage industry is also a mainstay in growth and absorbs a lot of
manpower, BPS data notes that in 2020 the proportion of labor absorbed by the
food and beverage business reached 3.75%, an increase from the previous year
which was 3.74%. .
According to Ali in Setyanti (2012), the culinary business is one of the choices
of many people, because it is considered a type of business that is easier to do than
other businesses. However, the culinary business is a business that is quite
complicated because it requires a lot of continuous innovation and creativity.
Culinary business that is not followed by innovation and creativity can lead to a
decrease in business competitiveness which often leads to the fall of the business
from the business market. Therefore, strategy plays an important role in being able
to continue to compete in this industry, even in the small business environment.
One good strategy to retain customers is Customer Relationship Management
(CRM). CRM focuses more on what customers value, not on the products the
company wants to sell. Through the application of CRM, companies are expected to
be able to build good communication and relationships with their customers so that
in producing a product the company does not only sell and market a product with
good quality or competitive prices but can also answer the wants and needs of
consumers (Sinaga, 2006)
A good relationship will be created if the culinary business is able to provide
satisfaction to the needs, desires and tastes of consumers. Therefore, restaurants
should not only focus on product variations and prices, but how to improve CRM
(Customer Relationship Management) to be able to attract consumers so that
satisfaction arises which has an impact on customer loyalty. According to Kotler
and Keller (2016) Customer Relationship Management (CRM) is a process of good
detailed information management from individuals and other customers that
focuses on things that are important to be able to maximize customer loyalty. The
basic reason why companies need to carry out a Customer Relationship
Management (CRM) strategy is an economic motive. Where the company's financial
coffers will increase if the company is able to manage consumers to identify, satisfy
and succeed in retaining their consumers (Arif, 2019).
A good sales department in a company really helps a lot in increasing company
profits. However, in the end it is the Customer Support section that is integrated
into the CRM (Customer Relationship Management) that determines whether the
customer will buy the product or service offered or not. It also determines customer
loyalty to the company. Therefore it is necessary to be able to increase customer

Scientium Management Review Vol. 1 no. 2 . 2022 75


satisfaction, so that customer loyalty is obtained and able to maintain that loyalty.
In addition, with a CRM system, companies can acquire new customers, increase
profits with existing customers, and retain profitable customers by providing what
these customers want, not what the market wants (Arif, 2019).
When viewed from the criteria that determine CRM assessments, it can be
drawn that all of these assessments are basically supported by three dimensions in
their application, namely people, process, and technology. The human dimension
(people) focuses on employees as CRM implementers where the key factors that
must be considered are enthusiasm, ability, and friendliness. The process
dimension is a system and procedure that helps humans to better identify and
establish close relationships with customers. The technology dimension was
introduced to further optimize human factors and business processes in daily
customer relationship processing activities (Arif, 2019)
There are several previous studies that have been carried out by several people
which can be used as references, but there are some similarities and differences in
the variables. For example, research conducted by Dodi Putra Sirait (2018) used
CRM, service quality and customer satisfaction variables, in contrast to this study
which did not use service quality variables but customer loyalty. Research
conducted by Merti Warsela, et al (2021) which only uses the CRM variable, is
different from this study which, apart from using the CRM variable, also uses the
variables customer satisfaction and customer loyalty. However, the research
variables conducted by Nelli Purnamasari, et al in 2018 are the same as this
research variable, namely CRM, customer satisfaction and customer loyalty.
Saung Rindu Alam Restaurant is a restaurant located at Jl. Poros Patallassang,
Sunggumanai, Gowa Regency, South Sulawesi, which was established in December
2019. Saung Rindu Alam restaurant is a culinary tourist spot with a "back to nature"
concept with a unique interior, there is a saung surrounded by a pond filled with
fish. The Saung Rindu Alam restaurant provides a variety menus ranging from
seafood to Indonesian food which are suitable for family gatherings. In addition to
a place to eat, Saung Rindu Alam also provides an indoor place that can be reserved,
can be used as a place for meetings, social gatherings, birthdays and other private
events, a reservation system that applies by coming directly to the restaurant or by
telephone. Other facilities available at Saung Rindu Alam are providing duck boat
rental facilities which can be rented to go around the ponds. The number of
employees at the Saung Rindu Alam restaurant is around 70 people, the work
system that applies is a shift system which is divided into 3 according to each
division, working hours from 9.00 to 22.00. The average number of visitors in one
day averages hundreds of visitors both weekdays and weekends.
After the opening of Saung Rindu Alam restaurant in December 2019, several
months later, there were many stories from customers who had visited that the
service was not good and the food served was not tasty. The intended poor service
was that the food took a very long time to arrive and the lack of good
communication between fellow waiters because at that time the restaurant
management used tabs as a tool to order or order food or drinks which in reality
was still ineffective because not a few customers wanted to communicate directly
with the waiter while ordering food or drinks because they are not proficient in

76 Scientium Management Review Vol. 1 no. 2 . 2022


operating tabs, apart from that many customers also want to ask for
recommendation menus or special menus from the restaurant itself.
However, as time went on, restaurant management began to hear complaints
from customers and improve their management systems, one of which was by
implementing Customer Relationship Management (CRM). This CRM determines
whether the customer will buy the product or service offered or not. It also
determines customer loyalty to the company. Therefore it is necessary to be able to
increase customer satisfaction, so that customer loyalty is obtained and able to
maintain that loyalty.
The CRM applied here is by focusing more on what the customer values, not on
the products the company wants to sell, so as to create good relationships with
consumers which in the end are able to provide satisfaction to the needs, wants and
tastes of consumers which also makes consumers become loyal customers. So that
until now Saung Rindu Alam restaurant is still the top choice when wanting to
gather with family, meetings, etc., and not a few people have repeatedly visited
Saung Rindu Alam restaurant.
From the phenomena and facts in the field that have been described above,
there is an interest in conducting research at Saung Rindu Alam restaurant to find
out how the level of satisfaction and loyalty from customers so far is towards Saung
Rindu Alam restaurant so that this can have an impact on the company's
performance in the long term. Based on the background description, this research
will take the following title, "The Effect of Customer Relationship Management
(CRM) on Customer Loyalty and Customer Satisfaction at Saung Rindu Alam
Restaurant in Gowa District, South Sulawesi"

2. LITERATURE REVIEW
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) is an important strategy for every
business sector organization. Through the Customer Relationship Management
(CRM) approach, companies can find out more deeply the extent to which Customer
Relationship Management (CRM) is utilized by using information technology in
relation to providing optimal service to its customers. CRM covers all aspects
relating to potential and current customers, including marketing, providing up-to-
date information, product ordering, technical support, field service, and handling
customer problems and complaints. By doing CRM, companies have the ability to
better understand customer buying behavior, or at least understand various other
things that can be obtained with this concept, as well as determine the type of
communication that must be built by companies with customers.
Purpose of Customer Relationship Management (CRM)
Basically, the purpose of a company adopting CRM is to increase customer
resilience and satisfaction. In general it can be said that the goal of any CRM strategy
is to develop profitable relationships with customers. The main goal of CRM is to
increase the long-term growth and profitability of a company through a better
understanding of customer behavior. Among the other CRM goals is knowing
customer needs in the future; assist companies in improving better services that can
be provided to customers; get new customers; find out the improvements needed by

Scientium Management Review Vol. 1 no. 2 . 2022 77


the company in order to satisfy customers; able to analyze customer behavior; reduce
costs incurred in order to get new customers because with CRM the company can
retain old customers to remain loyal to the company (Dyantina et al, 2012)
Benefits of Customer Relationship Management (CRM)
The benefits of Customer Relationship Management according to Dyantina, Afrina
& Ibrahim (2012) are:
1. Drive customer loyalty: CRM enables companies to leverage information from all
points of contact with customers. With consistency and ease in accessing and
receiving information, the service department will be able to provide even better
service to customers
2. Reduce costs: By implementing CRM, it is possible for services to customers to have
specific and focused information schemes, and by targeting services to the right
customers at the right time.
3. Improving operational efficiency: Ease of sales and service processes will reduce
the risk of declining service quality and reduce cash flow burdens.
4. Improvement of time to market: Implementation of CRM will enable companies to
obtain information about customers such as data on customer purchasing trends that
can be used by companies to determine the right time to market a product.
5. Increased revenue: proper CRM implementation will increase customer loyalty,
reduce costs, and improve operational efficiency.
Components of Customer Relationship Management (CRM)
Lukas (2001) states that when a company implements CRM there are at least three
main factors, namely people, process, technology to optimize organizational
relationships with all types of customers. The division of CRM into three main
components, namely:
1. People (people)
A very important role in CRM is people or humans. Humans in question are
employees as CRM actors, the key factors that must be considered are such as
organizational structure, roles and responsibilities, corporate culture, change
management procedures and programs as a whole (Mahmudah, 2018).
2. Process (process)
With a well-designed process, the institution or organization that implements
CRM must already know the goals and demands of the desired customer, through
the evaluation carried out. Based on the evaluation results, the CRM team creates
a new strategy to create good process procedures, in which the new process (can
be new service products or old service products, but the procedure is updated to
become a procedure / product that satisfies all parties) this new purpose must be
known, purpose and benefits (Komalasari, 2014).
3. Technology
Technology is a supporting tool in complementing CRM. This is intended to assist
employees in accelerating and optimizing service to customers.
Customer Loyalty
Customer loyalty is a condition where customers have a positive attitude towards
a product or brand, have a commitment to the brand and intend to continue
purchasing in the future (Mardalis, 2004 in Vega, 2016). Loyalty shows the tendency
of customers to use a particular brand with a high level of consistency. This means

78 Scientium Management Review Vol. 1 no. 2 . 2022


always related to customer preferences and actual purchases. The definition of
loyalty from the figure above is based on a behavioral approach (behavior) and an
attitude approach (attitudinal).
Customer Satisfaction
Satisfaction is a person's feelings of pleasure or disappointment that arise from
comparing perceived performance (products or results) against their expectations
(Kotler and Keller, 2009). Customers' assessment of product performance depends
on many factors, especially the type of loyalty relationship that customers have with
a brand. Consumers often form a more pleasant perception of a product with a brand
they already perceive positively (Iriandini, 2015).
Conceptual Model
The hypothesis proposed in this study, namely:
H1: The effect of Customer Relationship Management (CRM), namely people,
process, technology on customer loyalty.
H2: The effect of Customer Relationship Management (CRM) on customer
satisfaction.
H3: Effect of customer satisfaction on customer loyalty.
H4: The indirect effect of Customer Relationship Management (CRM) on customer
satisfaction
through
customer loyalty.

Figure 1: The Conceptual Model

3. RESEARCH METHOD
Location and Research Design
This research conducted on customers at Saung Rindu Alam Restaurants,
Gowa District, South Sulawesi. Research conducted in September 2022.
Population or Samples
The target population in this study are consumers who have or have consumed
products (food or drinks) at Saung Rindu Alam Restaurant, Gowa Regency, South
Sulawesi. The sample in this study were consumers who had visited Saung Rindu

Scientium Management Review Vol. 1 no. 2 . 2022 79


Alam Restaurant more than once, male and female over the age of 17 because this age
was considered capable of making decisions and providing relevant judgments.
Data Collection Method
The data collection method in this study used a questionnaire, observation,
and library research.
Data Analysis Method
This study uses path analysis to determine The Effect of Customer
Relationship Management (CRM) on Customer Loyalty and Customer Satisfaction at
Saung Rindu Alam Restaurant in Gowa District, South Sulawesi. The regression
equation used is as follows:
Y1= α + bX........................................................................(1)
Y2= α + b1X1 + b2X2 + e.................................................(2)

4. EMPIRICAL RESULTS
Descriptive Statistics
This study uses customers of Saung Rindu Alam Restaurants, Gowa District,
South Sulawesi as respondents as many as 105 people. The characteristics of the
observations in this study were gender, age, job, and frequency of visits to Saung
Rindu Alam Restaurants.
Based on the results of the study, respondents with several characteristics
were obtained. The gender of the majority of women amounted to 61 (58%) while
men are 44 (42%). Age characteristics used three age ranges, the first range was 18-
25 years with 44 people (42%), the second range was 26-35 years with 37 people
(35.2%), and the third range was 36-45 years with 24 people (22,8%). The next
characteristic is work where there are 43 people working as entrepreneurs (41%),
civil servants are 12 people (11.4%), private employees are 31 people (29.6%) and
others are 19 people (18%). The last feature is the frequency of visiting Saung Rindu
Alam Restaurants, customers who visit less than 3 times are 46 people (43.8%), 4-8
times are 37 people (35.2%) and more than 10 times are 22 people (21%)

Prerequisite Evaluations
In this study, validity and reliability tests were first carried out where the test
results showed that the research instrument or questionnaire was valid and reliable
or it could be said that the questionnaire could be used for further research and
testing.
The validity test found that all the calculated r values were greater than the r
table values, namely 0.2039. The people variable (X1) obtained a correlation value of
0.877 – 0.924. The process variable (X2) obtains a correlation value of 0.841 – 0.91.
The technology variable (X3) obtains a correlation value of 0.734 – 0.810. The
customer satisfaction variable (Y1) obtained a correlation value of 0.886 – 0.909. and
the customer loyalty variable (Y2) obtains a correlation value of 0.671 – 0.745.

80 Scientium Management Review Vol. 1 no. 2 . 2022


The reliability test is also said to be reliable because the Cronbach's Alpha
value is > 0.60 where the value of the people variable (X1) is 0.826, the process
variable (X2) is 0.821, the technology variable (X3) is 0.801, the customer satisfaction
variable (Y1) is 0.840, and the customer loyalty variable (Y2) is 0.774.

Path Analysis

Figure 2: Structural Model of The Effect of Customer Relationship Management


(CRM) on Customer Loyalty and Customer Satisfaction at Saung Rindu Alam
Restaurant in Gowa District, South Sulawesi

5. DISCUSSION
The effect of Customer Relationship Management (CRM), namely people, process,
technology on customer loyalty
The results of this study indicate that Customer Relationship Management
consisting of People, Process, and Technology have a joint effect that contributes with
a positive and significant value to customer loyalty. 0.693 or 69.3%. These results are
in line with research conducted by M. Raka Alfajri & Aditya Wardhana (2020) with
the title "The Effect of Customer Relationship Management on Tiket.com Customer
Loyalty (Survey of tiket.com users in the city of Bandung)". Based on the results of
this study, it can be concluded that respondents responses to the customer
relationship management variable as a whole fall into the good category with a
percentage value of 68.1%. The customer loyalty variable as a whole is included in
the pretty good category with a percentage value of 64.8%. In the CRM variable, there
is the lowest statement, namely when using tiket.com to use tixpoint. This means that
the respondent stated that when using the tiket.com application, he did not collect
tixpoints. Meanwhile, in the customer loyalty variable, the lowest statement is the
value of 57%, that is, they will not use tiket.com even though other online travel
agents offer cheaper rates, which is the CRM sub-variable which has a significant
influence on customer loyalty of tiket.com users in the city of Bandung with a total
contribution of 62.2%, the remaining 37.8% were influenced by external factors that
were not examined in this study.

Scientium Management Review Vol. 1 no. 2 . 2022 81


The effect of Customer Relationship Management (CRM) on customer satisfaction
The results of this study indicate that Customer Relationship Management
consists of People, Process, and Technology that have a joint effect that contributes
with a positive and significant value to customer satisfaction. This means that the
implementation of better customer relationship management can support increased
customer satisfaction, as evidenced by the contribution of 0.324 or 32.4%. The results
of this study are in line with research conducted by Nelli Purnama Sari, Heny K
Daryanto & Imam Teguh Saptono (2018) with the title "The Influence of Customer
Relationship Management on Customer Satisfaction and Loyalty of PT. Bank BNI".
Based on the results of this study, it showed that 92.15% of respondents stated that
the performance level of BNI WJB CRM as a whole was very good, while 7.85% of
respondents stated that BNI WJB CRM performance was quite good. CRM indicators
that have a significant and dominant influence are process and knowledge with a
loading factor of 0.89. These results prove that the CRM variables that have been
implemented by BNI can be felt in accordance with the expectations and desires of
customers.

Effect of customer satisfaction on customer loyalty


The results of this study indicate that customer satisfaction has a positive and
significant effect on customer loyalty. Factors that again affect customer satisfaction
at the Saung Rindu Alam Restaurants are how the service is provided and the
response given by employees. Loyalty can be said as a concept that emphasizes the
sequence of purchases. This is more operational than theoretical. The concept of
loyalty involves ideas related to the attitudinal approach as a psychological
commitment and a behavioral approach that is reflected in actual buying behavior.
One that can increase and maintain the success of Customer Relationship
Management (CRM) is how to empower HR capabilities within the scope of the
workers at the Saung Rindu Alam Restaurants, Gowa District. The more you have a
good impression of an employee, the more capacity you have to provide service to
customers. However, if there is an injury to the mechanism of human resources at the
Saung Rindu Alam restaurant, it will reduce the existing performance.
These results are in line with research conducted by Nelli Purnama Sari, Heny K
Daryanto & Imam Teguh Saptono (2018) with the title "The Influence of Customer
Relationship Management on Customer Satisfaction and Loyalty of PT. Bank BNI".
Based on the results of this study, it showed that 92.15% of respondents stated that
the performance level of BNI WJB CRM as a whole was very good, while 7.85% of
respondents stated that BNI WJB CRM performance was quite good. CRM indicators
that have a significant and dominant influence are processes and knowledge with a
loading factor of 0.89. These results prove that the CRM variables that have been
implemented by BNI can be felt in accordance with the expectations and desires of
customers.

The indirect effect of Customer Relationship Management (CRM) on customer


satisfaction through customer loyalty
The results of this study indicate that Customer Relationship Management consists
of People, Process, and Technology towards loyalty, there is an indirect effect on
customer satisfaction as an intervening variable. So this research has succeeded in

82 Scientium Management Review Vol. 1 no. 2 . 2022


giving an indirect effect and has fulfilled the fourth hypothesis which states that there
is an indirect effect of the Customer Relationship Management variable consisting of
People, Process and Technology on customer loyalty with customer satisfaction as an
intervening variable.
From the many customers of the Saung Rins Alam restaurant, the level of
customer loyalty is evidenced by the better customer satisfaction given and provided
by the employees who are in the Saung Rins Alam restaurant. Loyalty from customers
will spread even more if the service provided by employees is also very good and able
to maintain the impression that customers and prospective customers miss and feel
comfortable in the future.

6. CONCLUSION
The result shown that the variable Customer Relationship Management
(CRM) which consists of people, process and technology together (simultaneously)
influences and fulfills the standard of significance to customer loyalty (Y2), the
variable Customer Relationship Management (CRM) which consists of people,
process and technology together (simultaneously) have an effect on and meet the
standard of significance on customer satisfaction (Y1), customer satisfaction
variable (Y1) has a significant effect on customer loyalty (Y2), and there is an
indirect influence on Customer Relationship Management (CRM) consisting of
people, process and technology with customer satisfaction as an intervening
variable at the Saung Rindu Alam Restaurant, Gowa District, South Sulawesi.

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