The Influence of Digital Marketing Capabilities and Customer Relationship Management on Customer Loyalty in the E-Commerce Industry
Abstract
Customer loyalty poses a critical challenge amidst the dynamics of the Indonesian e-commerce industry, which tends to be driven by promotional strategies. This study aims to analyze the influence of Digital Marketing Capability and Customer Relationship Management (CRM) on Customer Loyalty. Utilizing a quantitative explanatory approach, data were collected through an online questionnaire from 150 respondents who are active e-commerce users in Indonesia, selected via purposive sampling. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3 software.The results indicate that Digital Marketing Capability has a positive and significant effect on Customer Loyalty, with a path coefficient of 0.812 and a large effect size (f2 = 0.675). This confirms that content management, advertisement personalization, and digital interface optimization are the primary determinants of customer retention. Conversely, a unique finding emerged: Customer Relationship Management (CRM) does not have a significant effect on Customer Loyalty (P-Value 0.547; f2 = 0.004). This suggests a shift in consumer behavior in Indonesia, where functional-digital efficiency is prioritized over traditional relational interaction. The model demonstrates moderate predictive power (R2 = 0.588) and good predictive relevance (Q2 = 0.441). The novelty of this research lies in uncovering the dominance of "technocratic loyalty" over relational loyalty within the digital ecosystem. The practical implication for e-commerce managers is the necessity to recalibrate strategies by prioritizing precision digital marketing transformations to build sustainable loyalty in a competitive marketReferences
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