THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER RETENTION WITH CUSTOMER SATISFACTION AS MEDIATING VARIABLE IN CV. KOMBOS MANADO

Abstract

Customer Relationship Management (CRM) is one way for companies to create customer satisfaction and increase customer retention. Customer Relationship Management (CRM) is recognized as a strategic approach that has the poten-tial to create higher customer satisfaction and, ultimately, effectively increase cus-tomer retention. The purpose of this study is to determine the effect of customer relationship management on customer retention with customer satisfaction as a mediator. This research was approached with quantitative methods. Data collection was done through questionnaires with random sampling technique. The data was analyzed using path analysis. The results showed that Customer Relationship Management (CRM) has a direct influence on customer retention. Customer rela-tionship management (CRM) has an effect on customer satisfaction. In addition, customer satisfaction has a positive and significant effect on customer retention. Finally, Customer Relationship Management (CRM) has an indirect effect on cus-tomer retention through the mediating variable of customer satisfaction.

Keywords: Customer Relationship Management (CRM), Customer Satisfaction, Customer Retention