Yuhelsy Gayatri Evilia, Muhammad Zakaria, Syamsul Bahri, Meutia Fadilla

A Quantitative Analysis of CRM Strategies on Customer Satisfaction and Loyalty: A Case Study in Space Rental Service Business

Introduction

A quantitative analysis of crm strategies on customer satisfaction and loyalty: a case study in space rental service business. Quantitative analysis explores CRM strategies' impact on customer satisfaction & loyalty in space rental services using SEM-PLS. Discover process & technology are key drivers.

Abstract

This study investigates how Customer Relationship Management (CRM) strategies impact customer satisfaction and loyalty within the space rental service industry. Employing a quantitative approach through Structural Equation Modeling - Partial Least Squares (SEM-PLS), this study evaluates three CRM dimensions: people, process, and technology. The data were obtained via a structured questionnaire administered to 98 respondents and analyzed using the SmartPLS software. The findings reveal that process and technology significantly affect satisfaction and loyalty, whereas the people dimension has a minor impact. Specifically, the CRM process dimension positively influences satisfaction (t = 3.184, p < 0.01) and loyalty (t = 2.590, p < 0.05), while technology shows strong effects on both (satisfaction: t = 3.696; loyalty: t = 4.850; p < 0.001). The study recommends implementing operational CRM initiatives such as call centers, feedback mechanisms, and digital engagement strategies. This work contributes to the CRM literature by offering targeted insights for physical service businesses in Indonesia.

Review

This study presents a quantitative analysis of how Customer Relationship Management (CRM) strategies, specifically focusing on people, process, and technology dimensions, influence customer satisfaction and loyalty within the space rental service industry. Employing Structural Equation Modeling - Partial Least Squares (SEM-PLS) on data collected from 98 respondents, the research provides targeted insights into a specific service sector. A significant strength lies in its clear methodology and focused application, effectively highlighting that CRM process and technology dimensions are significant drivers of customer satisfaction and loyalty, with robust statistical evidence supporting these claims (e.g., technology's strong effects on both satisfaction and loyalty at p < 0.001). While the study offers valuable insights, several areas could enhance its impact and robustness. The sample size of 98 respondents, while analyzed with SEM-PLS, is relatively small for a quantitative study of this nature, which might limit the generalizability and statistical power of the findings. A discussion on the justification for this sample size within the context of the model complexity would be beneficial. Furthermore, the abstract notes a "minor impact" for the people dimension, yet lacks specific statistical details (e.g., t-value, p-value) provided for the other significant dimensions, making it difficult to fully assess the nature and implications of this non-finding. The operational recommendations, while relevant, could also be more explicitly tied to the specific statistical findings, particularly in how they address the 'minor impact' of the people dimension. Overall, this paper makes a valuable contribution by providing empirical evidence for CRM effectiveness within the under-researched space rental service industry, particularly in Indonesia. The findings underscore the critical role of well-defined processes and advanced technology in fostering customer satisfaction and loyalty, offering practical guidance for businesses in this sector. For future research, expanding the sample size to enhance generalizability, and potentially incorporating qualitative methodologies to explore the nuances of the 'people' dimension, could further enrich our understanding of CRM dynamics in physical service businesses. Exploring other CRM dimensions or moderating factors in different cultural contexts could also offer fruitful avenues for investigation.

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