The Influence Of Customer Relationship Management On Customer Satisfaction And Customer Loyalty At The Fast Food Restaurant Burger King And Pizza Hut In Medan City

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The Influence of Customer Relationship Management on Customer Satisfaction and Customer Loyalty at the Fast Food Restaurant Burger King and Pizza Hut in Medan City

Introduction

In today's fast-paced business world, understanding the needs and preferences of customers is crucial for companies to maintain a competitive edge. Fast food restaurants such as Burger King and Pizza Hut in Medan City are a prime example of this competition. One key factor that contributes to customer retention is the effective implementation of Customer Relationship Management (CRM). This study aims to explore the impact of CRM on customer satisfaction and loyalty in both Burger King and Pizza Hut.

The Importance of Customer Relationship Management in Fast Food Restaurants

Customer Relationship Management (CRM) is a strategic approach that enables businesses to build and maintain strong relationships with their customers. In the context of fast food restaurants, CRM plays a vital role in creating a positive customer experience. By understanding customer needs and preferences, fast food restaurants can tailor their services to meet those needs, ultimately leading to increased customer satisfaction and loyalty.

Background

The economic growth and improvement in the standard of living of people in big cities have led to a change in consumption patterns. Consumers with a busy lifestyle expect fast and efficient services from fast food restaurants. Therefore, the process of fast food that is fast is one of the main factors that affect customer satisfaction. In this context, CRM has a significant role in building good relationships with customers, which can increase satisfaction and ultimately create loyalty.

Research Methodology

This study employed a quantitative approach with a descriptive and comparative design. The research population consisted of customers visiting Burger King and Pizza Hut in Medan City, with an uncertain number. A sample of 140 respondents was taken using non-probability sampling techniques. Data collection was carried out through a questionnaire for primary data, while secondary data were analyzed using path analysis with a significance level of α = 5%.

Research Results

The analysis results showed that the process and technology variables have a positive and significant influence on customer satisfaction and loyalty in Burger King and Pizza Hut. This indicates that the efficiency in services and the use of appropriate technology can improve customer experience. Meanwhile, the people variable, although it has a positive effect, does not show a strong significance on customer satisfaction and loyalty.

Additional Analysis and Explanation

The results of this study provide important insights for fast food restaurant management in formulating more effective strategies. Although the people variable does not show a significant effect, this does not mean that aspects of human resources are not important. Good interaction between staff and customers must be prioritized to create positive experiences, although other main factors such as processes and technology have a greater impact.

Recommendations for Burger King and Pizza Hut

Based on the findings of this study, the following recommendations are made for Burger King and Pizza Hut:

  1. Invest in staff training: Continue to invest in staff training to provide better services and improve customer interactions.
  2. Integrate technology: Integrate technology that supports efficiency to improve customer experience.
  3. Use CRM data: Use data from CRM to understand customer preferences and adjust offers accordingly.

Conclusion

In a competitive market, fast food restaurants such as Burger King and Pizza Hut in Medan City must understand the influence of customer relationships management on customer satisfaction and loyalty. The effective implementation of CRM, especially process and technology, can improve customer experience as a whole. Meanwhile, efforts to improve aspects of people must also continue to be carried out to create stronger relationships with customers.

Limitations of the Study

This study has several limitations, including:

  1. Small sample size: The sample size of 140 respondents may not be representative of the entire population.
  2. Non-probability sampling: The use of non-probability sampling techniques may introduce bias into the results.
  3. Limited scope: The study only focused on two fast food restaurants in Medan City, which may not be generalizable to other locations.

Future Research Directions

Future research should aim to:

  1. Increase sample size: Increase the sample size to ensure representativeness of the population.
  2. Use probability sampling: Use probability sampling techniques to reduce bias.
  3. Expand scope: Expand the scope of the study to include other fast food restaurants and locations.

By understanding the influence of CRM on customer satisfaction and loyalty, fast food restaurants can develop effective strategies to retain customers and improve their overall experience.
Frequently Asked Questions (FAQs) about the Influence of Customer Relationship Management on Customer Satisfaction and Customer Loyalty at the Fast Food Restaurant Burger King and Pizza Hut in Medan City

Q: What is Customer Relationship Management (CRM)?

A: Customer Relationship Management (CRM) is a strategic approach that enables businesses to build and maintain strong relationships with their customers. It involves understanding customer needs and preferences, and tailoring services to meet those needs.

Q: Why is CRM important for fast food restaurants?

A: CRM is important for fast food restaurants because it helps to create a positive customer experience. By understanding customer needs and preferences, fast food restaurants can tailor their services to meet those needs, ultimately leading to increased customer satisfaction and loyalty.

Q: What are the key factors that affect customer satisfaction and loyalty in fast food restaurants?

A: The key factors that affect customer satisfaction and loyalty in fast food restaurants include:

  1. Process: The efficiency of services and the use of technology to support those services.
  2. Technology: The use of technology to support customer interactions and improve the overall customer experience.
  3. People: The interaction between staff and customers, and the quality of service provided.

Q: What are the findings of this study?

A: The findings of this study show that the process and technology variables have a positive and significant influence on customer satisfaction and loyalty in Burger King and Pizza Hut. However, the people variable, although it has a positive effect, does not show a strong significance on customer satisfaction and loyalty.

Q: What are the recommendations for Burger King and Pizza Hut based on the findings of this study?

A: The recommendations for Burger King and Pizza Hut based on the findings of this study are:

  1. Invest in staff training: Continue to invest in staff training to provide better services and improve customer interactions.
  2. Integrate technology: Integrate technology that supports efficiency to improve customer experience.
  3. Use CRM data: Use data from CRM to understand customer preferences and adjust offers accordingly.

Q: What are the limitations of this study?

A: The limitations of this study include:

  1. Small sample size: The sample size of 140 respondents may not be representative of the entire population.
  2. Non-probability sampling: The use of non-probability sampling techniques may introduce bias into the results.
  3. Limited scope: The study only focused on two fast food restaurants in Medan City, which may not be generalizable to other locations.

Q: What are the future research directions?

A: The future research directions include:

  1. Increase sample size: Increase the sample size to ensure representativeness of the population.
  2. Use probability sampling: Use probability sampling techniques to reduce bias.
  3. Expand scope: Expand the scope of the study to include other fast food restaurants and locations.

Q: What are the implications of this study for fast food restaurants?

A: The implications of this study for fast food restaurants are that they should focus on implementing CRM strategies that prioritize process and technology, while also investing in staff training and development to improve customer interactions. By doing so, fast food restaurants can improve customer satisfaction and loyalty, and ultimately drive business growth.