Linking Customer Relationship Management to Customer Loyalty: The Mediating Role of Customer Satisfaction

Abstract

This study examines the extent to which Customer Relationship Management (CRM) contributes to Customer Loyalty, with Customer Satisfaction positioned as a mediating mechanism within this relationship. Adopting a quantitative research framework, data were collected through a structured survey administered to company consumers, and subsequently analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results provide robust empirical evidence that CRM practices significantly enhance both Customer Satisfaction and Customer Loyalty. Moreover, Customer Satisfaction is shown to exert a strong and positive influence on Customer Loyalty. Mediation analysis further confirms that Customer Satisfaction partially mediates the relationship between CRM and Customer Loyalty, suggesting that CRM initiatives not only generate direct loyalty outcomes but also operate indirectly by elevating customer satisfaction levels. These findings underscore the strategic importance of customer-oriented CRM implementation in cultivating long-term loyalty by consistently addressing customer needs, preferences, and expectations. The study offers valuable insights for both scholars and practitioners seeking to optimize CRM strategies as a sustainable pathway to strengthening customer loyalty.

Keywords: Customer Relationship Management, Customer Satisfaction, Customer Loyalty; Marketing Management, Consumer Behavior