THE EFFECT OF SOCIAL CUSTOMER RELATIONSHIPS MANAGEMENT ON CUSTOMER LOYALTY IN INDONESIA'S E-COMMERCE

Abstract

Purpose: The aim of this study is to determine whether social customer relationship management through social media marketing improves customer engagement and if it can support customer loyalty and retention. Theoretical Framework: Customer loyalty and retention are influenced by factors such as customer engagement and satisfaction through social customer relationship management. However, it is known that each generation such as generation X, Y and Z has different behavioral traits and views on the digital era on how they affect the current business industry. Therefore, the researchers decided to conduct further research on customer engagement influences customer satisfaction, customer loyalty and retention, and whether generational cohorts operate as a moderating element between SCRM to CL (Customer Loyalty) and CR (Customer Retention). Methodology: The method used in this study is the survey and sampling methods used in this study with a purposive sampling technique. Samples were collected as many as 207 participants were surveyed using Google Docs, who are strictly Gen X, Gen Y, and Gen Z, currently living in Jakarta, Bogor, Depok, Tangerang, Bekasi, and using e-commerce platforms. Findings: Data analysis in this study used path analysis. The data processing method uses PLS­SEM. The impact of social CRM on customer loyalty in Indonesia's e-commerce industry is that social CRM positively influences customer loyalty. The study found that social customer relationship management (CRM) is an effective way to increase customer satisfaction and encourage loyal online purchases. It significantly impacts customer satisfaction, leading to increased loyalty and profitability. Research, Practical & Social Implication: The research on the impact of social CRM on customer loyalty in Indonesia's e-commerce industry provides valuable insights and practical implications for businesses looking to enhance customer loyalty and succeed in the e-commerce market.