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All Journal Multidiciplinary Output Research for Actual and International Issue (Morfai Journal) Journal of Economics and Tourism
E.R Taufik
Universitas Sultan Ageng Tirtayasa
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WHAT KEEPS COFFEE CUSTOMERS COMING BACK? THE ROLES OF CUSTOMER RELATIONSHIP MANAGEMENT, CUSTOMER ENGAGEMENT, AND CAFÉ ATMOSPHERE Ade Wahyudistira; E.R Taufik; Liza Mumtazah Damarwulan
Multidiciplinary Output Research For Actual and International Issue (MORFAI) Vol. 6 No. 5 (2026): Multidiciplinary Output Research For Actual and International Issue
Publisher : RADJA PUBLIKA

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Abstract

Purpose. Retaining customers in the café segment is increasingly difficult as switching costs approach zero and competing outlets converge on product quality. This study asks why some customers return and disentangles two routes to retention that the prevailing literature has largely treated in isolation: a relational route operating through customer relationship management (CRM) and customer engagement, and an experiential route operating through the café atmosphere. Design/methodology/approach. Survey data from 200 patrons of the coffee shop were analysed with partial least squares structural equation modelling (PLS-SEM), incorporating a mediation test for engagement and a moderation test for atmosphere on the CRM–retention link. Findings. CRM exerts a small but significant direct effect on retention (β = 0.152, p = 0.027), and a larger share of its influence is channelled through customer engagement (indirect β = 0.224, p < 0.001) a complementary (partial) mediation in which engagement remains the dominant pathway, accounting for approximately 60 per cent of CRM's total effect, without eliminating a direct relational payoff. Café atmosphere is the single strongest driver of retention (β = 0.468, p < 0.001), exceeding both components of the relational route, while its hypothesised amplification of the CRM–retention link is not supported (β = 0.043, p = 0.459). The model explains a moderate share of retention variance (R² = 0.691). Originality/value. The study reframes CRM as an antecedent whose retention payoff is only partly direct and is substantially amplified when it is psychologically converted into engagement, and it shows that the relational and experiential routes operate largely in parallel rather than synergistically an environmental dominance that has practical consequences for how independent cafés allocate scarce resources.
Beyond Relationship Management: The Mediating Role of Customer Engagement in Driving Customer Retention: Melampaui Manajemen Hubungan: Peran Mediasi Keterlibatan Pelanggan dalam Mendorong Retensi Pelanggan Ade Wahyudistira; E.R Taufik; Liza Mumtazah Damarwulan
Benefits : Jurnal Ekonomi dan Pariwisata Internasional Vol 3 No 2 (2026): Contemporary Perspectives on Digital Transformation, Halal Economy, and Sustainab
Publisher : Yayasan Penelitian dan Pengabdian Masyarakat Sisi indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69836/benefits-jeti.v3i2.896

Abstract

A Despite the widespread adoption of customer relationship management (CRM), its ability to directly enhance customer retention remains uncertain. This study investigates whether customer engagement explains how CRM translates into retention outcomes. Using survey data from 117 respondents, the proposed model was tested with partial least squares structural equation modeling (PLS-SEM) in SmartPLS. The results show that CRM does not exert a statistically significant direct effect on customer retention (β = 0.223, p = 0.067). However, CRM significantly strengthens customer engagement (β = 0.676, p < 0.001), which in turn positively affects customer retention (β = 0.599, p < 0.001). Moreover, the indirect effect of CRM on customer retention through customer engagement is significant (β = 0.405, p < 0.001), indicating that engagement is the primary pathway through which CRM drives retention. The model explains 58.8% of the variance in customer retention (R² = 0.588). These findings extend CRM research by showing that retention is achieved not through CRM alone, but through CRM practices that actively cultivate meaningful customer engagement and long-term relational value.
Co-Authors Ade Wahyudistira Liza Mumtazah Damarwulan