The Influence Of Service Quality On Customer Loyalty At PT Bank Sumut

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The Influence of Service Quality on Customer Loyalty at PT Bank Sumut

Introduction

In today's fast-paced banking world, the focus has shifted from profitability to better service quality. The increasing expectations of the community for financial services that provide convenience and satisfaction have led to this change. As one of the banks operating in Medan, PT Bank Sumut needs to improve its services to remain competitive with other financial institutions. The main purpose is not only to attract new customers but also to maintain and build loyalty from existing customers. Customer loyalty is a crucial aspect that needs to be considered by PT Bank Sumut, Medan Pasar Center Sub-Branch.

The Importance of Service Quality

Service quality is the key to creating customer commitment. A good service will create a positive experience, which in turn is able to foster customer trust and attachment to the bank. In this context, service quality is the driving force behind customer loyalty. A positive experience is essential in building a strong relationship between the bank and its customers. This study aims to examine the extent of the influence of service quality on customer loyalty at PT Bank Sumut.

Research Methodology

The research method used is quantitative with data collection techniques including interviews, distribution of questionnaires, observations, and documentation studies. The number of respondents involved in this study reached 120 people. The results of the analysis show that there is a significant relationship between the quality of service and customer loyalty. The correlation coefficient (RXY) value of 0.695, and Tcount 10,500 and Ttable 1,980, indicate a strong positive relationship between service quality and customer loyalty. This shows that the better the quality of service provided, the higher the level of customer loyalty to the bank.

The Effect of Service Quality on Customer Loyalty

Based on the results of the study, the effect of service quality on customer loyalty was recorded at 48.302%. This figure shows that almost half of the customer's loyalty can be attributed to the quality of service that is felt. This is a clear indicator that PT Bank Sumut needs to focus on improving services to maintain and increase the number of customers. Improving service quality can be done in several ways, ranging from employee training to improve expertise and attitudes in serving customers, to the development of digital service systems that are more user-friendly.

Improving Service Quality

Improving service quality is essential in maintaining and increasing customer loyalty. Employee training is crucial in improving expertise and attitudes in serving customers. Banks need to listen to feedback from customers and make improvements needed. With the right strategy, PT Bank Sumut can not only maintain existing customer loyalty but also attract new customers with superior service quality. The development of digital service systems that are more user-friendly is also essential in improving service quality.

Conclusion

Through this analysis, it is clear that the quality of service plays a crucial role in building customer loyalty at PT Bank Sumut, Medan Pasar Center Branch. Banks that are able to create positive experiences for customers will have a competitive advantage and guarantee the continuity of their business in an increasingly competitive market. The study highlights the importance of service quality in maintaining and increasing customer loyalty. PT Bank Sumut needs to focus on improving services to remain competitive with other financial institutions.

Recommendations

Based on the results of the study, the following recommendations are made:

  • Employee training is essential in improving expertise and attitudes in serving customers.
  • The development of digital service systems that are more user-friendly is also essential in improving service quality.
  • Banks need to listen to feedback from customers and make improvements needed.
  • The bank needs to focus on improving services to maintain and increase the number of customers.

Limitations of the Study

This study has several limitations. The study only focuses on PT Bank Sumut, Medan Pasar Center Sub-Branch. The study only examines the relationship between service quality and customer loyalty. The study does not examine the relationship between service quality and other variables such as customer satisfaction and customer retention.

Future Research Directions

Future research can build on this study by examining the relationship between service quality and other variables such as customer satisfaction and customer retention. The study can also be replicated in other banks to examine the generalizability of the findings.
Frequently Asked Questions (FAQs) about the Influence of Service Quality on Customer Loyalty at PT Bank Sumut

Q: What is the main purpose of this study? A: The main purpose of this study is to examine the extent of the influence of service quality on customer loyalty at PT Bank Sumut.

Q: What is the research methodology used in this study? A: The research method used is quantitative with data collection techniques including interviews, distribution of questionnaires, observations, and documentation studies.

Q: How many respondents were involved in this study? A: The number of respondents involved in this study reached 120 people.

Q: What is the correlation coefficient (RXY) value obtained in this study? A: The correlation coefficient (RXY) value obtained in this study is 0.695, indicating a strong positive relationship between service quality and customer loyalty.

Q: What is the effect of service quality on customer loyalty recorded in this study? A: The effect of service quality on customer loyalty recorded in this study is 48.302%, indicating that almost half of the customer's loyalty can be attributed to the quality of service that is felt.

Q: What are some ways to improve service quality at PT Bank Sumut? A: Some ways to improve service quality at PT Bank Sumut include employee training to improve expertise and attitudes in serving customers, the development of digital service systems that are more user-friendly, and listening to feedback from customers and making improvements needed.

Q: Why is service quality important in maintaining and increasing customer loyalty? A: Service quality is important in maintaining and increasing customer loyalty because it creates a positive experience for customers, which in turn fosters customer trust and attachment to the bank.

Q: What are some limitations of this study? A: Some limitations of this study include the fact that it only focuses on PT Bank Sumut, Medan Pasar Center Sub-Branch, and it only examines the relationship between service quality and customer loyalty, without examining the relationship between service quality and other variables such as customer satisfaction and customer retention.

Q: What are some future research directions based on this study? A: Some future research directions based on this study include examining the relationship between service quality and other variables such as customer satisfaction and customer retention, and replicating the study in other banks to examine the generalizability of the findings.

Q: What are some recommendations for PT Bank Sumut based on this study? A: Some recommendations for PT Bank Sumut based on this study include employee training to improve expertise and attitudes in serving customers, the development of digital service systems that are more user-friendly, and listening to feedback from customers and making improvements needed.

Q: What is the conclusion of this study? A: The conclusion of this study is that the quality of service plays a crucial role in building customer loyalty at PT Bank Sumut, Medan Pasar Center Branch. Banks that are able to create positive experiences for customers will have a competitive advantage and guarantee the continuity of their business in an increasingly competitive market.