The Influence of Electronic Customer Relationship Management On Customer Loyalty With Customer Satisfaction and Customer Experience As Mediation
The Influence of Electronic Customer Relationship Management On Customer Loyalty With Customer Satisfaction and Customer Experience As Mediation
The Influence of Electronic Customer Relationship Management On Customer Loyalty With Customer Satisfaction and Customer Experience As Mediation
INTRODUCTION
Indonesia is a country with a vast and diverse geography; Indonesia is also the country with
the fourth largest population in the world. Population growth, rapid urbanization, and rapid
economic development create an urgent need for a variety of things, including efficient,
affordable, and reliable transportation systems. One type of vehicle that Indonesian people
popularly use is a motorbike. Data collected by the Pew Research Center states that as
many as 85% of the household population in Indonesia are motorbike users (Pew Research
Center, 2023). This data is reinforced by AISI findings, which reveal that the number of
motorbikes in Indonesia has reached 80 million units (AISI, 2023).
Seeing this trend, online transportation is here to answer future mobility needs that
make things easier for the community. The evolution of information and communication
technology has brought many changes to consumer behavior toward business strategies
[1]. Mobility and transportation systems are no exception. With the support of digital
technology, people can take advantage of online transportation services that simplify and
speed up various activities. Starting from ordering transportation services for people,
goods, and food to purchasing various health and household needs to be delivered to the
desired location. Telkomsel DigiAds stated that after conducting a survey of 29 thousand
respondents via the Roli application, it found that 41% of respondents had used the online
transportation application and 59% of them still needed to be users, but had the potential
to use it in the future. As many as 44% of users regularly use online transportation
applications to support their daily living needs. 46% of users chose the online
transportation feature as an alternative, and 20% of users chose the food delivery feature
as their favorite service (Telkomsel DigiAds, 2022).
In the context of online transportation, there are several platforms used by Indonesian
people; based on a survey conducted by the Institute for Development of Economics and
Finance (Indef) in 2022, Indef found that the super app most used by Indonesians for
transportation and logistics is Gojek.
Application developed by PT Gojek Tokopedia Tbk. (GOTO) is the brand with the
highest level of consumer satisfaction. Based on this survey, respondents rated Gojek as
providing the highest sense of security in transportation. Regarding ease of use of the
application, Gojek achieved a score of 3.39 or higher than the industry average of 3.30.
After Gojek, Grab followed with a score of 3.27. Meanwhile, for online merchant
respondents, the GoSend service by Gojek was considered the most efficient, safe, and easy
to use. The consensus of respondents gave the express delivery service a score of 3.17, or
higher than the industry average of 3.04. After GoSend, other express delivery services
scored 3.05 for Lalamove, 3.04 for Grab, and 3.03 for ShopeeXpress (Indef, 2022).
Databooks also state that the online transportation applications with the largest
market share in Indonesia are Gojek and Grab (Databoks.co.id, 2022). Go-Jek is the first
unicorn in Indonesia and has successfully transformed the market by significantly impacting
the Indonesian economy [2]. Several large companies like Astra, Allianz, Google, Tencent,
JD.com, and Mitsubishi, were also making invested in Go- JEK Indonesia. In 2020, the Gojek
company was valued at 12.5 billion dollars, and in 2019, it made 7.1 billion dollars in
economic contributions to Indonesia [3].
Gojek and Grab dominate Indonesia's online transportation industry and have intense
competition. Grab has a market share of 20%, while Gojek dominated a market share of
80% in Indonesia in 2019 [4]. Even though Gojek is the market leader, in 2022, Gojek's
market share will decrease drastically to 52%, followed by Grab, which has a market share
of 48% (Statista, 2023). This is of particular concern regarding the phenomenon of Gojek,
which is experiencing a decline in market share compared to its competitor, Grab.
Facing reality, Gojek needs to carry out various alternatives to maintain its influence in
Indonesia, starting by ensuring their customers' loyalty, satisfaction, and experience.
Retaining existing customers will be more profitable for the company [5]. One way that can
be used to maintain these three things for customers is to apply good E-CRM to their
services. E-CRM is a series of systems focusing on the Internet and online collaboration
between companies and customers. E-CRM is also known as the latest innovation
companies use to further develop their promotional capabilities and customer capacity
(Chaffey, 2011).
The E-CRM and social media trends in question can also guide companies in
designing or redesigning their business models when they fall (Kemp, 2021). next65% of
salespeople are-utilize E-CRM to achieve their sales targets (MacDonald, 2021).CRM
Adoption in Asia Pacific also reached 75.9%, Europe 85.7%, and America 83.6%. (Kimble,
2021). Even 57% of advisory firms all over the world consider E-CRM as the most critical
program in 2021. (Bruckenstein & Veres, 2021)
Using E-CRM (Electronic-Customer Relationship Management) at Gojek can increase
customer satisfaction and understand how a company has a big impact in utilizing
technology to manage and strengthen relationships with millions of active customers.
The services offered by Gojek, including transportation, food delivery, goods delivery,
and even financial services, create a more complex ecosystem. E-CRM implementation in
this context is not just about managing customers within one service but also within an
ecosystem of interrelated services. This raises the question of how E-CRM can be used and
maximize its role to support customer satisfaction and customer experience to increase
customer loyalty to the company.
In the context of sustainability and business growth in Indonesia, this research aims to
investigate how implementing E-CRM can influence Customer Loyalty, with Customer
Experience and Customer Satisfaction as mediators in the environment represented by
Gojek. This research seeks to provide a comprehensive view and relevant data about the
importance of E-CRM in managing customer relationships amidst the development of Gojek
and the increasingly dynamic business landscape in Indonesia.
Literature Review
Electronic Customer Relationship Management
The principle of E-CRM is almost the same as traditional CRM, with the technology,
CRM activities are easier and faster to implement [6]. Effectiveness in the use of technology
in customer database management or content management on the web is commonly
applied to companies that are successful in implementing E-CRM[7]. According to Colgate
et al. (2005), Information technology is an efficient tool in maintaining relationships
because it can facilitate interaction and communication [8]. CRM is a strategy companies
use to build long-term relationships by focusing on consumers and providing the best
quality service to achieve sustainable business profits [9]. According to [6], a successful
CRM implementation is.
1. Making CRM aprocess that focuses on providing added value to customers and the
business.
2. It is allocating human resouces and financial, to customers who provide value to
the company or customers who have the potential to provide benefits in the future.
3. Have comprehensive knowledge of each company's customer.
4. Customize and offer products and services to customers when they need them or
before they need them.
interaction.[24].Indicators of "customer loyalty" are taken from Jones and Taylor (2007)
with coverage of 1) Behavioral Loyalty, 2) Attitude Loyalty, and 3) Cognitive Loyalty [13].
Conceptual framework
Based on the description above, it can be built research framework as follows:
Customer
Satisfaction
Customer
Experience
Research Hypothesis
Based on the problem formulation and research conceptual framework above, the
research hypothesis proposed by the researcher is as follows:
1. E-CRM affects Customer Satisfaction.
2. E-CRM affects Customer Experience.
3. E-CRM affects Customer Loyalty.
4. Customer Satisfaction affects Customer Loyalty.
5. Customer Experience influences Customer Satisfaction.
6. Customer Experience influences Customer Loyalty.
7. E-CRM influences Customer Loyalty through Customer Satisfaction as mediation.
8. E-CRM influences Customer Loyalty through Customer Experience as mediation.
METHOD
This research is causal research with a purposive sampling method using a questionnaire
distributed to respondents who must meet all the predetermined criteria. This
questionnaire uses a Likert scale with numbers 1 to 5 with categories: Strongly Disagree
(1), Disagree (2), Neutral (3), Agree (4), and Strongly Agree (5). The population in this study
are users or customers of online transportation applications, especially the Gojek
application in Indonesia. The sample in this study amounted to 210 respondents collected
using purposive sampling with the following criteria: 1) Respondents are Indonesian
citizens, 2) Respondents are at least 17 years old, and 3) Respondents have previously used
or made transactions using the Gojek application. The data measurement method used in
this research uses Structural Equation Modeling (SEM), which is assisted by using the
AMOS 26 Statistics application. Based on research concepts built from theoretical studies
presented, this research refers to previous research [13]and research by [21].
Measurement Model
The results of suitability, validity and reliability testing can be seen in the following
table:
Tabel 2. Value of Standardized Loading Factor, Construct Reliability (CR), and Average
Variance Extracted (AVE) in Overall Model Fit
Items SLF CR AVE
E-CRM Gojek Allows me to choose services according 0.831 0,821 0,601
to my needs.
I am sure that Gojek will not misuse my 0.782
personal information
Various payment methods to choose from are 0.814
available in the Gojek application
The Gojek application gives me the right
information when problems occur (such as 0.832
network problems, not finding a driver nearby,
and so on)
The online feedback or satisfaction rating feature 0.829
is available on the Gojek Application
I found this FAQ (Frequently Asked Questions) 0.512
useful for me
Customer I feel happy when using the Gojek application. 0.778 0,818 0,562
Experience I think the Gojek application has met my 0.74
expectations.
I feel helped by the Gojek application. 0.762
The visuals displayed on the Gojek application 0.738
are comfortable for me to see.
Customer I feel satisfied after using Gojek's services. 0.774 0,912 0,595
Satisfaction I am satisfied with the response, prices, 0.704
promos, and timeliness provided by Gojek.
After using Gojek, I feel I got what I wanted. 0.788
If I need online transportation services, I will use 0.768
Gojek.
The table above is the result of testing the validity and reliability of the model as a
whole. The Standardized Loading Factor (SLF) value for all variables is greater than 0.50,
which means that all indicators are valid and able to measure the construction of the entire
research model. The Construct Reliability (CR) test results obtained a score of more than
0.70, which means that all instruments are reliable and consistent in measuring the
structure of the model created.
Table 3 is a table of model suitability test results. The results obtained state that the
model suitability requirements are acceptable. All measurements have shown the level of
suitability and obtained a good fit.
Hypothesis Testing
The results of testing the relationship between variables in the model built in this
research can be seen in the following table.
From the results of the relationship test between variables in Table 4.4, the calculated
t value for the E-CRM variable that influences Customer Experience is 4.133, which is a
value greater than the t table, namely 1.96. The results also show that several variables,
such as E-CRM, which influence Customer Loyalty, have values below the t table, which
means the hypothesis cannot be accepted. Likewise, p values showing numbers below 0.05
are declared valid and significantly positive. A hypothesis with a p-value greater than 0.05
is declared Positively Insignificant. The results of the Sobel test are attached in the
following table to confirm the indirect influence of the relationship between mediating
variables.
Tabel 5. Sobel Test - Significance of Mediation
Sobel test Two-tailed Conclusion
statistics probability
H7 E-CRM -> Customer Satisfaction -> 1,967 0.049 Significant
Customer Loyalty
H8 E-CRM -> Customer Experience -> 0.834 0.404 Insignificant
Customer Loyalty
Based on the Sobel test results in the table above, the Sobel test statistic in H7 is
1.967, which is greater than the t table of 1.96, and the p-value is 0.049, which is smaller
than 0.05, so H7 shows that there is an indirect influence from Customer Satisfied as a
mediator between the variables. E-CRM on Customer Loyalty. The results also show H8.
Getting a value of 0.834 is below the t table value of 1.96 so it can be concluded that the
Customer Experience variable does not mediate between E-CRM and Customer Loyalty.
Discussion
The results of the hypothesis test it state that E-CRM has a significant effect on
Customer Satisfaction, this support previous research conducted by [13]. This hypothesis
also shows Gojek's success in building customer relationships to provide customer
satisfaction value [10]. E-CRM has a significant effect on Customer Experience this support
the research conducted by [21] which states that E-CRM helps companies or organizations
to provide good, memorable experiences to customers. E-CRM negatively influences
customer loyalty, which means that the smaller the E-CRM, the more loyal customers will
be (H3). Customer Satisfaction affects Customer Loyalty but is not significant. The higher
the customer satisfaction with a product or service, the higher the customer loyalty (Yoo et
al., 2015); [17]. Customer Experience has a significant influence on Customer Satisfaction.
Customer Experience does not affect Customer Loyalty and is not significant. E-CRM is
proven to influence Customer Loyalty by using Customer Satisfaction as mediation.
According to Dowling (2002), CRM is based on the belief that building long-term
relationships with customers is the basis for achieving customer satisfaction and loyalty
[11]. E-CRM is insignificant in influencing Customer Loyalty by using Customer Experience
as mediation.
CONCLUSION
The results of this research differ from previous research conducted by (Mokha, Anupreet
K., 2020), with the research object being banking applications. The absence of a significant
relationship between the Customer Experience variable and Customer Loyalty is because
there are other external factors that could occur to customers when getting an experience.
For example, the customer experience that is obtained is already good; customer loyalty
has also increased. However, customers also get a better experience than other online
transportation applications, this will undoubtedly affect customer loyalty to Gojek services.
Another factor is the different times of use of Gojek. Gojek users in 2023 and Gojek users in
2018 are different and affect customer loyalty. Research on E-CRM has no influence on
customer loyalty and may produce different results than other studies, which show a more
significant influence. These factors occur partly because consumer preferences and
behavior can change over time. Therefore, research conducted at different time periods may
yield different results because consumers respond differently to E-CRM efforts. This
negative relationship can indicate that Gojek needs to re-examine their E-CRM service at
the post-transaction stage because this negative relationship could mean customers are
not satisfied with their E-CRM service thereby impacting on their loyalty to the services
provided by Gojek (Oumar et al., 2017). This is in line with research conducted by [3] which
states that E-CRM does not have a direct effect on customer loyalty but has a positive
impact on customer satisfaction, and customer satisfaction mediates the relationship
between E-CRM and customer loyalty [26]. Viewed from the E-CRM side, which influences
customer loyalty through customer satisfaction as mediation, this has its views, especially
from existing competitors. The most prominent thing about gojek's E-CRM, which makes
customers more loyal, is the features embedded in the Gojek application.
REFERENCES
[1] N. M. N. Daud and M. A. A. Amin, “e-Academia Special Issue GraCe,” 2019.
[2] F. Radhi and F. Pramuditya, “Disruptive Innovation of Gojek Indonesia,” Manajemen
Bisnis |, vol. 9, no. 1, pp. 47–59, 2021.
[3] M. Moslehpour, T. Ismail, B. Purba, and W. K. Wong, “What makes go-jek go in
indonesia? The influences of social media marketing activities on purchase intention,”
Journal of Theoretical and Applied Electronic Commerce Research, vol. 17, no. 1, pp.
89–103, Mar. 2022, doi: 10.3390/jtaer17010005.
[4] S. Chalermpong et al., “Ride-hailing applications in Southeast Asia: A literature
review,” International Journal of Sustainable Transportation, vol. 17, no. 3. Taylor and
Francis Ltd., pp. 298–318, 2023. doi: 10.1080/15568318.2022.2032885.
[5] * Popli and D. N. Rao, “CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN
BANKS,” 2015. [Online]. Available: https://ssrn.com/abstract=1373592
[6] P. Fairhurst, “e-CRM,” Journal of Database Marketing, vol. 8, no. 2, pp. 137–142,
2000.
[7] H. Kimiloǧlu and H. Zarali, “What signifies success in e-CRM?,” Marketing Intelligence
and Planning, vol. 27, no. 2, pp. 246–267, Mar. 2009, doi:
10.1108/02634500910945011.
[8] W. Pebrianti, W. Tanwira, and A. Ahmadi, “Online Relationship Marketing and
Customer Loyalty Based on Signalling Theory,” GATR Journal of Management and
Marketing Review, vol. 6, no. 1, pp. 86–93, Mar. 2021, doi:
10.35609/jmmr.2021.6.1(9).
[9] B. Melović, B. Rondović, S. M.- Veljković, S. B. Očovaj, and M. Dabić, “Electronic
Customer Relationship Management Assimilation in South-Eastern European
Companies –Cluster Analysis,” 2020.
[10] M. N. Akroush, S. E. Dahiyat, H. S. Gharaibeh, and B. N. Abu-Lail, “Customer
relationship management implementation: An investigation of a scale’s
generalizability and its relationship with business performance in a developing
country context,” International Journal of Commerce and Management, vol. 21, no. 2,
pp. 158–191, Jun. 2011, doi: 10.1108/10569211111144355.
[11] M. R. Sofi, I. Bashir, M. A. Parry, and A. Dar, “The effect of customer relationship
management (CRM) dimensions on hotel customer’s satisfaction in Kashmir,”
International Journal of Tourism Cities, vol. 6, no. 3, pp. 601–620, Sep. 2020, doi:
10.1108/IJTC-06-2019- 0075.
[12] H. Mulyono, S. Helmi, and S. H. Situmorang, “e-CRM and Loyalty: A Mediation Effect
of Customer Experience and Satisfaction in Online Transportation of Indonesia,”
Academic Journal of Economic Studies, vol. 4, no. 3, pp. 96–105, 2018, [Online].
Available: https://www.researchgate.net/publication/327821397