THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION AS MEDIATING VARIABLE: A STUDY CASE IN THE BODY SHOP, PONTIANAK

This paper examined the effect of customer relationship management (CRM) on loyalty through customer satisfaction as the mediating variable.The elements of CRM which are measured in this study are one-to-one marketing, continuity marketing, and partnering program. Primary data was gathered using a questionnaire base on 100 respondents of The Body Shop Pontianak’s customers. Path analysis is used to examine the relationship of the variables. The results of the study revealed that customer relationship management (CRM) has positive and significant effect on customer satisfaction and customer loyalty, while customer satisfaction also was positively correlated with customer loyalty. The Body Shop needs to improve their customer relationship management to increase their customer satisfaction and customer loyalty.This can be done by maintain personal relationship with their loyal customer and other companies. Keywords: customer relationship management, customer loyalty, customer satisfactio