Increasing Loyalty Based on Service Quality and Customer Satisfaction

Abstract

This study aims to analyze the influence of service quality including reliability, responsiveness, assurance, empathy, and tangible on customer satisfaction, the influence of digitalization on customer satisfaction, and the influence of customer satisfaction on customer loyalty at PT. Bank Negara Indonesia (Persero) Tbk Karangayu Semarang Branch Office. This study is motivated by the increasingly rapid development of banking digitalization so that banks are required to provide optimal service quality to increase customer satisfaction and loyalty, especially through the digital service of the DigiCS machine. The type of research used is explanatory research with a quantitative approach. The population in this study were 1,500 customers of BNI KC Karangayu who had used DigiCS services. The sampling technique used purposive sampling with a sample size of 150 respondents. Data collection was carried out by distributing questionnaires using a Likert scale. The data analysis technique used Structural Equation Modeling (SEM) with the help of the AMOS program. The results of the study showed that reliability, responsiveness, assurance, empathy, and tangible had a positive effect on customer satisfaction. Digitalization also had a positive effect on customer satisfaction. Furthermore, customer satisfaction was proven to have a positive effect on customer loyalty. These findings indicate that the better the quality of banking services and the implementation of digitalization, the higher the level of customer satisfaction, which ultimately increases customer loyalty to the bank. This research implies that banks need to continuously improve the quality of both in-person and digital services, maintain the reliability of their service systems, enhance transaction security, and prioritize customer convenience and needs to maintain long-term customer loyalty.