The Effect of Customer Relationship Management (CRM) on Bank Customer Loyalty through Satisfaction as Mediating Variable: Evidence in Batam, Indonesia

This study examines the effect of Customer Relationship Management (CRM) on banking customer loyalty in Batam city of Indonesia through customer satisfaction as a mediating variable. The respondents of this study are the customers of commercial banking in Batam collected by using purposive sampling method. This study took 500 respondents as sample those are registered as customers at 155 commercial bank offices based on data from Indonesia Central Bank in 2016. The model developed aims to measure customer loyalty through the implementation of customer relationship management (CRM) strategy of banking services industry in Batam. The result of this study indicate that CRM has a positive impact on loyalty through satisfaction as a mediating variable. The conclusion of customer loyalty research could be recommended for bank management in implementing the proper CRM strategy and maintaining the longtime relationship with the prime customers. Keywords—customer relationship management; customer satisfaction; customer loyalty; Batam city