The Role of Customer Loyalty on Customer Retention in Retail Companies

Abstract

Retail can be seen from two sides, namely traditional retail such as grocery stores and community businesses, most of which do not use professional management and modern retail which can be seen as stores with professional management. Emerging competition makes companies have to carefully set strategies and manage companies so that companies are able to remain competitive and survive. Maintaining customer loyalty is one of the company's strategies to survive with the existing competitive conditions. This research uses a qualitative descriptive method, which describes the data collected and analyzed. The subject of this research is the role of consumer loyalty on customer retention in retail companies using literature review of secondary data. Based on the results of the study, it can be explained that the role of consumer loyalty on customer retention in retail companies that are developing in the form of department stores in Indonesia, namely with this loyalty, a retail company can compete with other retail businesses. Loyalty definitely has an impact on customer retention, and consumers choose retail businesses for their daily needs. Similar forms of competition between modern retail companies include segmented market competition, service system competition, price competition, product quality competition and so on.