The Influence of Customer Experience and Electronic Word of Mouth on the Participants’ Loyalty Through Customer Value as an Intervening Variable in BPJamsostek, Medan City Branch

Abstract

Indonesia's social security system implementation has entered a new stage. Since the implementation of Law No. 40 of 2004 about the National Social Security System and Law No. 24 of 2011 regarding the Social Security Administering Body or “BPJS,” the social security system has also been implemented on a national scale. Social security implementation may rely heavily on customer experience and word of mouth. Participants in BPJamsostek will get personal experience using BPJamsostek services. Satisfaction influences whether or not participants will stay loyal to participants at their productive age and even recommend them to others. Experience determines whether or not participants will remain loyal to them and even recommend them to others. This research intends to examine the impact of customer experience and electronic word-of-mouth on participants' loyalty at the BPJamsostek branch in Medan City, Indonesia, using customer value as an intervening variable. Accidental sampling is used for sampling. The population of this research consisted of claimants for JHT under the age of retirement, with a total of 100 respondents. Using the SmartPLS 3.0 application, PLS-SEM was used for data analysis. The findings indicate that customer experience has a significant and positive impact on customer loyalty. Customer loyalty is positively and significantly affected by electronic word of mouth. Customer value has a significantly positive influence on customer loyalty. Customer experience has a significantly positive impact on customer value. Customer value is positively and significantly affected by electronic word of mouth. Customer value may mediate the link between customer experience and customer loyalty, as well as electronic word of mouth's effect on customer loyalty. Keywords: Customer Experience, Electronic Word of Mouth, Loyalty, Customer Value