Transformation of CRM Activities into e-CRM: The Generating e-Loyalty and Open Innovation

Abstract

Technological developments have digitized consumer behavior all over Indonesia. This has become the basis for the emergence of e-commerce, a digital business system that is widely used by the public in making purchases through apps or websites. For this reason, an e-commerce platform should create e-loyalty, to make it the best option among many stores. This is the first study investigating ten factors that contribute to e-Customer Relationship Management (e-CRM) value on e-loyalty in Indonesia. The study involved 767 active users of the number one e-commerce company in Indonesia. An empirical investigation was carried out, to validate the instrument items regarding the e-CRM factors and e-loyalty indicators, using Explanatory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). The analysis utilizes Structural Equation Modeling (SEM) to test the hypotheses. The finding suggested that the variables of customization, care, cultivation, choice, online community, convenience, site security, personalization values, rewards, and interactivity positively contribute to e-CRM value on e-loyalty.