Customer-Centric Marketing: Building Loyalty through Personalized Experiences
DOI:
https://doi.org/10.37385/ijedr.v4i6.6574Keywords:
Customer Loyalty, Personalized Experiences, Customer Satisfaction, Customer EngagementAbstract
This study examines the impact of personalized experiences, customer satisfaction, and engagement on customer loyalty among postpaid users of Indosat, one of Indonesia’s leading telecommunications providers. Using a quantitative research design and Smart PLS for analysis, data from 258 respondents reveal that customer engagement is the most significant driver of loyalty, while personalized experiences play a critical role in enhancing customer satisfaction. The study also finds that while satisfaction contributes to loyalty, its effect is less pronounced than engagement, highlighting the importance of creating deeper emotional connections to ensure customer retention. Moreover, the moderating effect of combined satisfaction and engagement on loyalty indicates a potential diminishing return when both variables are maximized simultaneously. These findings suggest that Indosat should adopt a balanced approach that integrates personalized marketing with engagement strategies to foster long-term customer loyalty in a highly competitive market. The study contributes to the literature on customer-centric marketing by emphasizing the need for tailored and engaging customer experiences in the telecommunications sector.
References
Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125–143. https://doi.org/10.1287/mksc.12.2.125
Ball, D., Coelho, P. S., & Vilares, M. J. (2006). Service personalization and loyalty. Journal of Services Marketing, 20(6), 391–403. https://doi.org/10.1108/08876040610691284
Beckers, S. F. M., Van Doorn, J., & Verhoef, P. C. (2018). Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value. Journal of the Academy of Marketing Science, 46(3), 366–383. https://doi.org/10.1007/s11747-017-0539-4
Bilgihan, A., Seo, S., & Choi, J. (2016). Identifying restaurant satisfiers and dissatisfiers: Suggestions from online reviews. Journal of Hospitality Marketing & Management, 25(7), 786–806. https://doi.org/10.1080/19368623.2016.1118205
Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). Customer engagement: Conceptual domain, fundamental propositions, and implications for research. Journal of Service Research, 14(3), 252–271. https://doi.org/10.1177/1094670511411703
Calder, B. J., Malthouse, E. C., & Schaedel, U. (2009). An experimental study of the relationship between online engagement and advertising effectiveness. Journal of Interactive Marketing, 23(4), 321–331. https://doi.org/10.1016/j.intmar.2009.07.002
Chen, S., Lin, C., & Cheng, B. (2021). The role of AI in creating consumer trust and loyalty. Journal of Marketing Development and Competitiveness, 15(3), 10–23. https://doi.org/10.33423/jmdc.v15i3.3793
Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113. https://doi.org/10.1177/0092070394222001
Filtenborg, A., Ryom, J. B., & Mikkelsen, M. R. (2021). Revisiting the Expectation-Disconfirmation Model of customer satisfaction. Service Science, 13(1), 1–16. https://doi.org/10.1287/serv.2020.0275
Ga?a, R. (2018). Customer loyalty and satisfaction in the retail banking sector. Journal of Competitiveness, 10(2), 82–96. https://doi.org/10.7441/joc.2018.02.06
Grewal, D., Levy, M., & Kumar, V. (2017). Customer experience management in retailing: An organizing framework. Journal of Retailing, 93(1), 1–13. https://doi.org/10.1016/j.jretai.2016.12.001
Hausman, A. V., & Siekpe, J. S. (2009). The effect of web interface features on consumer online purchase intentions. Journal of Business Research, 62(1), 5–13. https://doi.org/10.1016/j.jbusres.2008.01.018
Hollebeek, L. D., Glynn, M. S., & Brodie, R. J. (2014). Consumer brand engagement in social media: Conceptualization, scale development, and validation. Journal of Interactive Marketing, 28(2), 149–165. https://doi.org/10.1016/j.intmar.2013.12.002
Islam, J. U., Hollebeek, L. D., Rahman, Z., Khan, I., & Rasool, A. (2018). Customer engagement in the service context: An empirical investigation of the construct, antecedents, and consequences. Journal of Retailing and Consumer Services, 40, 277–285. https://doi.org/10.1016/j.jretconser.2017.03.010
Jones, T. O., & Sasser, W. E. (1995). Why satisfied customers defect. Harvard Business Review, 73(6), 88–99.
Keiningham, T. L., Aksoy, L., Andreassen, T. W., Cooil, B., & Wahren, B. J. (2007). The satisfaction, repurchase intent, and share-of-wallet relationship: Investigating the moderating effect of customer characteristics. Journal of Marketing, 71(2), 39–51. https://doi.org/10.1509/jmkg.71.2.39
Kumar, V., & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing, 80(4), 317–330. https://doi.org/10.1016/j.jretai.2004.10.007
Li, J., Liu, F., & Zhang, X. (2019). Effects of personalized recommendation on customer satisfaction in e-commerce. Journal of Retailing and Consumer Services, 46, 225–234. https://doi.org/10.1016/j.jretconser.2018.12.011
Lin, C., Wu, J., & Chen, H. (2009). Exploring the impact of service quality on customer satisfaction: An empirical study of the telecom sector. International Journal of Information Management, 29(1), 21–30. https://doi.org/10.1016/j.ijinfomgt.2008.10.004
Maslowska, E., Malthouse, E. C., & Collinger, T. (2016). The customer engagement ecosystem. Journal of Marketing Management, 32(5–6), 469–501. https://doi.org/10.1080/0267257X.2016.1140226
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.2307/1252308
Morgeson, F. V. (2013). Expectation-disconfirmation and citizen satisfaction with local government services. Public Administration Review, 73(6), 890–901. https://doi.org/10.1111/puar.12115
Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63, 33–44. https://doi.org/10.2307/1252099
Pappas, N. (2018). The complexity of consumer experiences: Exploring the future of e-tourism. Tourism Management Perspectives, 26, 97–99. https://doi.org/10.1016/j.tmp.2017.08.006
Pappas, N., Pateli, A., & Patsiotis, A. (2019). Examining the persuasive effect of online reviews on customer behavior: A case of mobile applications. Journal of Retailing and Consumer Services, 47, 48–59. https://doi.org/10.1016/j.jretconser.2018.10.005
Pine, B. J., & Gilmore, J. H. (1999). The experience economy: Work is theater and every business a stage. Harvard Business Review Press.
Poku, K., Zakari, M., & Soali, A. (2014). Impact of service quality on customer loyalty in the hotel industry: An empirical study from Ghana. International Review of Management and Business Research, 3(2), 1–10.
Rosado-Pinto, J., & Loureiro, S. M. C. (2020). Enhancing the service experience through engagement and satisfaction. Journal of Service Theory and Practice, 30(5), 605–626. https://doi.org/10.1108/JSTP-01-2019-0012
Schembri, S., Merrilees, B., & Kristiansen, K. (2023). Examining customer-brand engagement in a digital landscape. Journal of Marketing Communications, 29(4), 344–361. https://doi.org/10.1080/13527266.2022.2105581
Slåtten, T., Mehmetoglu, M., Svensson, G., & Svaeri, S. (2011). Examining the effects of emotional intelligence on service recovery, service quality, and loyalty. International Journal of Quality and Service Sciences, 3(2), 203–222. https://doi.org/10.1108/17566691111145947
Smith, J., & Yang, Y. (2022). The role of AI in creating personalized customer experiences in the digital age. Journal of Consumer Marketing, 39(2), 101–112. https://doi.org/10.1108/JCM-10-2021-5050
So, K. K. F., King, C., Sparks, B. A., & Wang, Y. (2016). The role of customer engagement in building consumer loyalty to tourism brands. Tourism Management, 57, 341–351. https://doi.org/10.1016/j.tourman.2016.06.006
Tsao, J. Y. (2013). Satisfaction and loyalty in the internet services market: An empirical investigation. Journal of Strategic Marketing, 21(4), 339–350. https://doi.org/10.1080/0965254X.2013.790467
Van Ryzin, G. G. (2004). Expectations, performance, and citizen satisfaction with urban services. Journal of Policy Analysis and Management, 23(3), 433–448. https://doi.org/10.1002/pam.20021
Verleye, K., Gemmel, P., & Rangarajan, D. (2014). Managing engagement behaviors in a network of customers and stakeholders: Evidence from the nursing sector. Journal of Service Research, 17(1), 68–84. https://doi.org/10.1177/1094670513494012
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), 122–146. https://doi.org/10.2753/MTP1069-6679200201
Yousaf, Z., Rasheed, M. I., & Siddique, M. I. (2021). Impact of personalization on customer satisfaction and loyalty in e-commerce: Moderating effect of trust. Journal of Retailing and Consumer Services, 60, 102438. https://doi.org/10.1016/j.jretconser.2021.102438
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46. https://doi.org/10.2307/1251929
Zhang, X., & Feng, Y. (2009). The impact of customer satisfaction on loyalty: A meta-analysis. Journal of Services Marketing, 23(3), 171–183. https://doi.org/10.1108/08876040910955189