Essay on Customer Loyalty

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This research is motivated by the development of technology in the banking world which simplifies banking transactions, namely the digital marketing of Bank Tabungan Pensiunan Negara. Digital Marketing is products or services advertised via the Internet. Internet marketing can be technically creative, both design, development, advertising, and selling through the Internet. The analytical method used is path analysis with quantitative research methods. The data used are primary data with the type of associative research. The sampling technique used is purposive sampling taking 91 respondents. Data was processed in this study using SPSS 25. The results showed that relationship marketing partially has a significant positive effect on loyalty in the Digital Marketing of Bank Tabungan Pensiunan Negara. Next, partially the promotion mix has a significant positive effect on loyalty. Moreover, partial relationship marketing has a positive and significant effect on customer satisfaction in the Digital Marketing of Bank Tabungan Pensiunan Negara. Furthermore, partially, the promotion mix did not have a significant positive effect on customer satisfaction at the Digital Marketing of Bank Tabungan Pensiunan Negara. Another important finding shows that partial loyalty has a significant positive effect on customer satisfaction variables. Finally, relationship marketing and promotion mix influence loyalty with customer satisfaction as an intervening variable. This means that consumer satisfaction can mediate the effect of relationship marketing and promotion mix on loyalty in the Digital Marketing of Bank Tabungan Pensiunan Negara. The current digital age economy is growing very rapidly and rapidly. That requires economic actors to be more agile, resilient, and fast in determining strategies and breakthroughs in marketing activities, so it can be ascertained today economic actors are increasingly competing to dominate the market and become the main so that their products are in great demand by the wider community, they also do various ways to attract consumers.

The tight competition in the banking world makes each bank compete to attract as many customers as possible by establishing close and close relationships with customers and providing value to customers with different capabilities from other banks, to create customer satisfaction that will form customer loyalty. Different types of companies use marketing strategies to attract as many consumers as possible.

In conducting integrated marketing communication activities, it cannot be separated from the existing promotion mix. The promotion mix consists of advertising, personal selling, promotional selling, public relations, and direct marketing. There is one element that is included as an element of this promotion mix, namely digital marketing.

Internet marketing is also known as digital marketing. According to Sanjaya and Tarigan (2009), digital marketing is marketing activities including branding that use various web-based media such as blogs, websites, e-mails, AdWords, or social networking. The use of the internet empowers consumers because they can enter the network and quickly find which price is the cheapest for certain products or services. Consumers benefit from the internet because it can reduce product search costs and product-related information. In digital era developments like this, online services are the choice of most customers. This is due to the ease of doing all types of banking transactions.

Bank Tabungan Pensiunan Negara (BPTN) as one of the national commercial banks, initially focused on after-service (pension) services. Bank Tabungan Pensiunan Negara (BPTN) provides online-based services and facilities. Online-based services from BPTN banks are also diverse, the following are e-banking facilities offered by Bank BPTN, including BTPN Sinaya online and BTPN Sinaya mobile are internet-based services that offer easy and convenient banking access from PCs, laptops, tablets, or smartphones. BTPN Sinaya online can be accessed through the website, while the BTPN Sinaya mobile application can be downloaded from the application store on a smartphone with the following specifications: iPhone / iOS.

Commitment to always prioritize the security of BPTN Sinaya online and BPTN Sinaya mobile customer deposit funds is equipped with various security features. Every financial transaction is equipped with a secret PIN or passcode that will be received via SMS on the mobile phone via a soft token. BPTN Sinaya online and BPTN Sinaya mobile can be used for BTPN Sinaya online and BTPN Sinaya mobile can be used for, accessing Sinaya Giro, BPTN Taseto Premium, BPTN Taseto Mapan, BPTN Tabungan Pasti and BPTN Deposit.

Consumer loyalty is influenced by many factors, one of which is consumer confidence. Trust is the key to maintaining and maintaining long-term relationships between consumers and companies. One strategy that can be applied by companies to retain consumers is to create relationships between companies and consumers. This strategy of creating relationships with consumers is known as relationship marketing.

The core of bank management in general is to bridge the relationship marketing consisting of their employees towards customers, especially those closely related to customer satisfaction and customer loyalty for the company through financial resources, experience, and knowledge to be able to use relationship marketing strategies to accelerate growth corporate and banking success.

Consumer satisfaction is a concept that has long been known in marketing. Kotler and Keller (2009) define consumer satisfaction as someone’s happy or disappointed feelings that arise after comparing the expected performance. Consumers have a level of satisfaction and dissatisfaction after getting services received from the company based on the level of expectations that have been met or not. Companies must try to make customer satisfaction develop into loyal customers of the products and services provided by the company.

A promotion mix is an activity or effort to notify or offer a product or service, to attract potential consumers to buy or consume. The promotion mix is the best combination of strategies from the advertising, sales promotion, and personal selling variables planned to achieve the sales program objectives. If the three components are combined then run well and correctly, it will have a positive effect on sales. This means that if the three combinations run successfully, it will increase the level of sales and sales can be done optimally.

Literature review

Marketing Services

Marketing in a company plays a very important role because marketing is one of the activities carried out to maintain the viability of the company, make progress towards the company, and achieve the company’s goals for profit. Ordinary people in general often equate marketing with sales. This view is too narrow because sales are only one of several aspects of marketing. Marketing seeks to identify the needs and wants of its target market consumers and how to satisfy them through the exchange process while still paying attention to all parties and objectives related to the company’s interests.

Digital Marketing

According to Coviello, Milley, and Marcolin (2001), digital marketing is the use of the internet and the use of other interactive technologies to create and connect dialogues between companies and consumers that have been identified. They also argue that e-marketing is part of e-commerce.

Relationship Marketing

Saputra and Ariningsih (2014) suggest that relationship marketing is a marketing strategy concept that seeks to establish long-term relationships with customers, namely maintaining a strong and mutually beneficial relationship between service providers and customers that can build repeat transactions and create customer loyalty.

Promotion Mix

Swastha (2009) promotion mix commonly called promotion mix is a combination of the best strategies of advertising variables, personal sales, and other promotion tools, all of which are planned to achieve the sales program objectives.

Loyalty

Customer loyalty has an important role in maintaining the survival of the company because with this loyalty the company will get even more benefits.

Sangadji and Sopiah (2013) stated that loyalty is the commitment of customers to persevere deeply to re-subscribe or to re-purchase selected products or services consistently in the future, even though the influence of the situation and marketing efforts have the potential to cause behavioral changes. Creating loyal customers is the core of every business. Creating strong and close relationships with customers is the key to long-term marketing success.

Satisfaction

According to Zeithaml and Bitner in Sangadji and Sopiah (2013), meeting consumer satisfaction is a ‘customer evaluation of a product service in terms of whether that product or service has met their needs and expectations.’ Consumers who are satisfied with the product or service purchased and reused will use the services or products offered. This will build consumer loyalty.

Research methods

Types of Research

This research is a causal associative research using a quantitative approach. Sugiyono (2014) causal associative research is research that looks for a relationship or effect of cause and effect, namely the relationship or effect of the independent variable (X) on the dependent variable (Y). The survey method was chosen as the primary data source obtained through a questionnaire. According to Sugiyono (2014) in survey research, data collection was carried out using a questionnaire to get respondents’ responses. The survey research method aims to obtain data or facts that cannot be observed, past information that has not been recorded, or from the respondent’s attitude.

Research Location and Time

This research was conducted in the Digital Marketing of Bank Tabungan Pensiunan Negara which is located at Jalan Putri Hijau No.20, Kesawan, Medan Baru, Kota Medan, Sumatera Utara 20235. The time of this study began in March 2019 until August 2019.

Population and Sample

Erlina (2011) population is a complete group of entities that can be people, events, or objects that have certain characteristics, which are in an area and meet certain requirements related to research problems.

The sample is part of the number and characteristics possessed by the population of Sugiyono (2014). The sample in this study were consumers of PT. BTPN Bank which was taken from 2017 to 2018 with 1,501 consumers. In this study, researchers did not take the entire population due to the large number of consumers which is around 91 people, as well as limited costs and time, the researchers used a nonprobability sampling technique with a judgmental sampling method. The number of samples used in this study was 91 respondents.

Path Analysis Techniques

In the path analysis, the terms independent and dependent variables are not used, instead, the terms exogenous variables (causes) and endogenous variables (effects) are used. Path diagrams provide explicit causality relationships between variables based on theory, in describing path diagrams that need to be considered the direction of the one-headed arrow is a regression relationship and the two-headed arrow is a correlation relationship. If there is more than one exogenous variable in the model, then these exogenous variables must be connected with two-headed arrows (Ghozali, 2016). From the t-statistical test in Table 1, it can be concluded that the significance of relationship marketing variables and promotion mix > 0.05 then H0 is accepted and H1 is rejected, partially the effect of each independent variable can be described as follows:

The relationship marketing variable with statistics is 3.193 with a confidence level of 5% with a significance of 0.002 smaller than 0.05 so it can be concluded that relationship marketing has a significant positive effect on loyalty.
The promotion mix variable with statistics of 2.656 at a confidence level of 5% with a significance of 0.009 smaller than 0.05 so it can be concluded that the promotion mix has a significant positive effect on loyalty.

Second Hypothesis Testing

From the t-statistical test in Table 2 above it can be concluded that the significance of relationship marketing variables and promotion mix > 0.05 then H0 is accepted and H1 is rejected, partially the effect of each independent variable can be described as follows:

Variable relationship marketing with statistics of 5.240 at a confidence level of 5% with a significance of 0,000 smaller than 0.05 so it can be concluded that relationship marketing has a positive and significant effect on customer satisfaction
The promotion mix variable with a statistical value of 0.591 at a confidence level of 5% with a significance of 0.556 which is greater than 5 0.05 so it can be concluded that the promotion mix has no significant positive effect on customer satisfaction.

Third Hypothesis Testing

From the Tabel 3 t statistical test, it can be concluded that if the significance of the customer satisfaction variable < 0.005 then H0 is rejected and H1 is accepted. Partially the effect of loyalty on the dependent variable can be described as follows:

Variable customer satisfaction with statistics of 5.802 at the level of trust α = 5% with a significance of α = 0,000 smaller than 0.005 so it can be concluded that customer satisfaction has a significant positive effect on loyalty variables.

Fourth Hypothesis Testing

From the results of the t statistic in Table 4, it can be concluded that if the significance of the relationship marketing variable and promotion mix > 0.005 then H0 is accepted and Ha is rejected. Partially the effect of each independent variable on the dependent variable can be described as follows:

The relationship marketing variable with a statistical value of 0.575 at the level of trust α = 5% with a significance of 0.567 which is greater than α = 0.05 so it can be concluded that relationship marketing has no positive significant effect partially on loyalty.
Promotion mix variable with a statistic of 0.823 at the level of trust α = 5% with a significance of 0.413 which is greater than α = 0.05 so it can be concluded that the promotion mix is not a partially significant positive effect on loyalty.
Customer satisfaction variable of 4.125 at the level of trust α = 5% with a significance of 0,000 which is smaller than α = 0.05 so it can be concluded that customer satisfaction has a significant positive effect on loyalty.

Conclusion and suggestion

Conclusion

Based on the results of research and discussion in this study, the following conclusions are obtained:

Relationship marketing has a significant positive effect on loyalty.
Promotion mix has a significant positive effect on loyalty.
Relationship marketing has a positive and significant effect on customer satisfaction.
Promotion mix has no significant positive effect on customer satisfaction.
Customer satisfaction has a significant positive effect on loyalty.
Relationship marketing and promotion mix affect loyalty with customer satisfaction as an intervening variable. This means that customer satisfaction can mediate the effect of relationship marketing and promotion mix on loyalty.

Suggestion

Based on the previous conclusions, the researchers suggest as follows:

Relationship marketing strategy is the right strategy to be recommended when the company targets to get customer loyalty. By knowing the 4 key dimensions in the application of relationship marketing, namely trust, communication, commitment, and conflict handling, it is expected that Bank BPTN can further intensify the company’s marketing infrastructure in support of the 4 dimensions, thus BPTN banks must establish good relationships using Balance Checks. BTPN Bank via BTPN Sinaya Mobile and Check BTPN Bank Balance via BTPN Online.
We recommend that the BPTN bank conduct a more vigorous promotion mix and increase promotion activities and funds for promotions, such as improved promotions in the form of television media advertising promotions both in terms of advertising messages and hours of delivery, sales promotions in the form of direct gifts more increasing, and opening of stands/exhibitions in shopping centers.
Loyalty is the main thing that needs to be maintained and even improved because with customers who are loyal to Bank BPTN are a big advantage for Bank BPTN both financially and in socialization and actualization of the company in the public eye, because loyal customers tend to refer what is he feels positively to others, and is willing to pay a high price for the service he receives. This is the ultimate goal of every company, therefore it must be guarded as well as possible so that no customers leave and may even have to increase and become more abundant from time to time.
For Further Researchers It is expected not only to examine relationship marketing and the promotion mix but also to include external factors outside the banking that will affect loyalty and customer satisfaction and is also expected to expand the sample size, not only to one bank but to more than one bank as a sample in further research.

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