CUSTOMER RELATIONSHIP MANAGEMENT IN MEDIATING IMPACT OF CUSTOMER VALUE ON CUSTOMER RETENTION IN THE VILLAGE CREDIT INSTITUTION OF DENPASAR INDONESIA

Nowadays, business competition is very intense, which is true in the case of financial services business, including banks, Village Credit Institution and other financial service business which must always try to meet customer satisfaction. The aim of the study is to prove the need for ensuring customer satisfaction, considering its direct link with such concepts as customer retention and customer value. From empirical test result, conducted due to the research, it is obtained that customer value has a significant impact on customer retention in Village Credit Institution and that significance level of customer value significantly influences Customer Relationship Management in Village Credit Institution. In the same way, the results obtained intended that Customer Relationship Management has a significant impact on customer retention in Village Credit Institution and it can mediate the relationship between customer value and customer retention. Taking into account the fact that Village Credit Institution is of strategic role in the wellbeing of the region, serving micro small enterprises (MSEs) and citizens of Denpasar through services that are carried out in accordance with customer needs, it must be managed with efficient management pattern in all fields including services.


INTRODUCTION
In globalization era, which is characterized by corporate and other competition, the prosses of moving products or services must be able to adjust the needs and desires of consumers or customers to meet expectations, so as to provide satisfaction to consumers or customers. Companies that can compete in the market are those that can provide good quality products or services. This is so that the goods and services offered will get a good place in the perspective of the community as a customer, prospective customer and later customers can assess the extent of the services provided by the company.
Currently, the goods and service industry sector is growing. So competition is increasingly tight. This can be seen that so many business people invest more in services. Therefore, to be able to compete, business people must have a specific strategy to be at the forefront. Business In conditions of intense competition, Village Credit Institution in Denpasar implemented CRM strategy for ensuring customer satisfaction. Customer relationship management implemented by each Village Credit Institution is an effort to establish communication between the company and its customers, where the task is implemented by the customer service department (Customer Relations). Each Village Credit Institution has an important role in maintaining good relations with customers and is ready to solve various questions about products and services, to provide information to every customer of Village Credit Institution of Denpasar, regarding service, promotion of new products and events related to the company.
In addition, the after sales service found in Village Credit Institution of Denpasar also has an influence on creating customer satisfaction. This after-sales service also has an important role in achieving customer satisfaction when a product purchased by a customer is damaged or decreased, so the company needs to give a guarantee to the customer. The Village Credit Institution of Denpasar owned after-sales service facility namely partnership service where customer partners can perform personal services, so customer partners will get a number of benefits, including: determining the time of arrival and free queuing.
The Village Credit Institution of Denpasar has a service system called Inter-Customer Services (AJAN) integrated with banking application as one of the sophisticated services. The Village Credit Institution of Denpasar always strives to provide good services in order to increase its customers.
The customer is the biggest asset in determining whether the company is developing or not. In this case, the customer is not only a buyer but a partner for the company. Customers can also be the main key in the sustainability of the company. Therefore, companies take many steps to pay attention to the existing level of customer satisfaction and attract new customers with the aim of further sustainable development.
CRM and after sales service are closely related to each other because they have a great influence on the company in order to maintain the good name of the company and is a strategy that must be observed by the company in achieving customer satisfaction. Customer satisfaction can be achieved, if the company understand the needs and expectations of customers, maintaine relationships with customers and provide good after-sales service (Suryadi, 2016).
But the direct relationship between the independent variable to the dependent variable is stronger. Prasetyo, et al (2011) stated that the building of the marketing that is not supported by good relationship quality through providing good quality service, good customer value and good customer satisfaction will not cause retention to customers. Because there are many types of financial institutions today that causes the strict competition, therefore customers have the choice to determine which financial institution provide higher satisfaction.
The presence of Village Credit Institution in rural areas can reach groups in improving the community's standard of living. Village Credit Institutions must also pay attention to Customer Relationship Management issues in conducting their activities. Service is the main key to establish the relationship with customers. The experience received by the customer can be a pleasant or unpleasant one and will affect Customer Relationship Management. Because with satisfaction, customer retention will be even better in the future and will affect the assessment of customers or consumers.
Village Credit Institution has strategic role, serving micro small enterprises (MSEs) and citizens in the Indonesia of Denpasar Bali through services that are carried out in accordance with customer needs. Village Credit Institution must be managed with efficient management pattern in all fields including services. If the Village Credit Institution is not managed properly, it will affect Customer Relationship Management and customer retention, which is of great importance even in the case of ensuring village welfare, otherwise villagers can switch to borrow or save to other places as they are less satisfied with Village Credit Institution's services. Therefore, Village Credit Institution must be able to foster its clients' trust in saving money in different forms, such as: savings, deposits or credits. It must be provided by implementing good administrative and financial management. The implementation of impactive Village Credit Institution management is an absolute thing and is a vehicle of organization's further successful activity in managing business for the benefit of customers and it will create retention from customers in the end. Retention is one of the ways to maintain good relation with customers so Village Credit Institution in Denpasar Indonesia can compete with other financial institutions to avoid bankruptcy.
The total assets of Village Credit Institution in Denpasar Indonesia reached more than IDR 2.2 trillion in 2018, with a profit of more than 72 billion IDR. Whereas there are 35 units of Village Credit Institution in total namely: North Denpasar District (10 units), East Denpasar District (12 units), South Denpasar District (11 units) and West Denpasar District (2 units). Meanwhile, many customers complain that service of Village Credit Institution is not satisfactory. The staff is not friendly when serving customers, staff skills are not enough and they mistake in calculating numbers, so customers feel uncomfortable. The process of borrowing credit is much more difficult than saving or depositing money, the credit availability is longer and the interest is too high. So a lot of customers move to another financial institution, resulting to the customer data fluctuating. There is an increase and decrease in each month and can affect customer assessments that allegedly can affect customer retention.
Based on the background that has been described, the research analyzes the role of Customer Relationship Management in mediating the impact of customer value toward customer retention in Village Credit Institution of Denpasar.

Customer Relationship Management (CRM)
According to Kotler and Keller (2012) Customer Relationship Management (CRM) is an activity undertaken to manage detailed information about individual customers and customer touch points to maximize loyalty. Customer touch points are customers facing brands and products, from actual to personal experience or from mass communication to casual observation. CRM provides fully satisfying services for customers by using impactive information about customers. Anton and Petouhoff (2002) in Mulyaningsih (2013) describes Customer Relationship Management (CRM) as a business activity and strategy that involves all resources to build, manage and maintain relationships with existing customers, to find out the needs and desires of customers. CRM is an effort or strategy in building and maintaining relationships with customers to stay loyal to the company. The Customer Relationship Management (CRM) indicator, according to Sheth, Parvatiyar and Shainesh (2001) in Sirait (2018) states that there are three customer relationship management (CRM) programs: Sustainable Marketing Program, Head-to-Head Marketing Program, Partnership Program. This program can create relationships with customers. It can also grow and maintain relationships with customers in the long run, and create customer loyalty (Wina, 2017).

Customer Value
Customer value is a product characteristic in mind and is explained by the customer. Boonlertvanich (Lia, 2018) states that customer value is defined as the difference between the total value of the customer and the customer received from the product or service and the total cost of the customer arising from the assessment, acceptance, use and rejection of the product. or service. The customer value indicators according to Kotler (2005) are as follows: Product Value, Service Value, and Image Value. Sadiartha, A. A. N. G. (2020), "Customer relationship management in mediating impact of customer value on customer retention in the Village Credit Institution of Denpasar Indonesia", Management and entrepreneurship: trends of development, Vol. 1, Issue 11, pp. 53-66, DOI: https://doi.org/10.26661/2522-1566/2020-1/11-04 57 CRM (M)

Customer Retention
According to Hasan (in Nio, 2018), customer retention is an important target and indicator in increasing purchases repeated and recommend that has a positive impact on the company. Consumer retention can also be defined as a condition where the customer continues to establish positive relationships with service providers. According to Zulkifi (2012) and Wahyu, et. al., (2016) there are indicators used to measure consumer retention, namely: efforts to increase loyalty, efforts to improve relationships with customers, and efforts to retain customers.

METHODOLOGY
Based on the theoretical study that has been described, the variables used are as follows: customer value, customer retention and customer relationship management. So the framework can be described in the following figure:

Definition of Variable Operation
In this study, the operational definition of variable is as follows: 1. Customer Value (X) Customer value indicators include: Product value, Service value, Image value.

2.
Customer Relationship Management (M) The variable indicators of Customer Relationship Management are as follows: Sustainable Marketing Program, Head-to-Head Marketing Program, Partnership Program.

3.
Customer Retention (Y) Customer retention (Y) is the maintenance of on going relationship with Village Credit Institution customers in long term. Indicators of consumer retention include: Efforts to increase loyalty, Efforts to improve relationship with customers, Efforts to maintain customers.

Population and Sample
The population in this study is all customers in 2018 as the Village Credit Institution customer population is unknown in number. The formula is needed to determine the number of samples by using the Lemeshow formula (Riduwan and Akdon, 2010), namely: if the degree of trust is 95% and the sampling error is 10% and the number of samples is 1.96 : n = 2 4 2 n = (1,96)2 4(0,1)2 n = 3,8416 4(0,1)2 n = 96,04 = 100 Then the minimum number of samples needed in this study of 96 respondents was obtained. Based on the above calculation, the sample of respondents in this study was adjusted to 100 respondents, this was done to obtain data processing and for better testing result.

The Technique of Sampling
The method used in this study is the technique of sampling by accidental sampling, namely how to obtain a sample based on the customers who happened to be encountered when conducting the research. The customer was taken from the study area and its outside.
Path Analysis

Validity Test Result
The recapitulation of the result of the validity test in this study can be seen in the following table:

Source: Own calculation
Based on table 1 above, all variables have correlation coefficient value above 0.3, thus all of these instruments are valid, so they are worthy of being used as research instrument.

Reliability Test
The result of the reliability of the research instrument with the help of SPSS Version 22.0 for Windows can be explained as follows:

Source: Own calculation
Based on table 2 above, all variables have Cronbach Alpha coefficient above 0.6, so all of these instruments are reliable, so they are worthy of being used as research instrument.

The Description of Research Variable
Descriptive statistical result can be seen in Table 3: Source: own calculation Based on table 3, it can be seen the minimum value that can be achieved on the variable customer value was 7 and the maximum value was 20. The mean for customer value was 15.37. The standard deviation was 2,553, this mean that there was a deviation in the value of the customer to the average value of 2.533. For Customer Relationship Management variable, the minimum value was 7 and the maximum value was 20. The mean Customer Relationship Management variable was 15.53. The standard deviation was 2.552, this mean that there was a deviation of Customer Relationship Management to an average value of 5.552. The minimumcustomer retention variable was 7 and the maximum value was 20. The mean customer retention variable was 15.58. The standard deviation of 2.339, this means that there was a deviation of customer retention of an average value of 2,396.

Path Analysis
Theoretically, the relationship between variable can be modeled in form of a path diagram, as follows.

Source: Own compilation
For the estimation of the parameter carried out by regression analysis through SPSS 23.0, the following results were obtained: Substructure 1: M =  1 X + e  From the result on substructures 1 and 2, it can be seen the magnitude of direct influence, indirect impact and the total impact between variables. The result of impact between variables is as follows:

Model validation check
Total coefficient of determination results is R²m = 1 -(1-0,445) (1-0,395) R²m = 1-0.336 R²m = 0.664 The pattern of data by the model is 66.4 percent or the information generated in the data is 66.4 percent and can be explained by the model, and the remaining 33.6 percent is explained by other variables (not contained in the model) and errors.

Trimming Theory
The validation test on each path for direct impact is the same as the regression, the p value of the t test, which tests the regression coefficient of the partial variable with the customer value (X) on Customer Relationship Management (M) is 8.866 sig. 0,000, customer value (X) for customer retention (Y) is 4,459 with sig 0,000, Customer Relationship Management (M) variable with customer retention (Y) is 2,314 with sig 0,023.

Mediation Analysis of Variable Regression with the Sobel Test Method
To assess mediation variables that relate between dependent and independent variables, the following steps are taken: Indirect impact of customer value on customer retention through customer relationship management: the conclusion that customer relationship management can mediate the relationship between customer value and customer retention

1.
The Impact of customer value on customer retention. The result obtained indicate that the significance level of research for customer value variable significantly influenced customer retention of 0,000 <0.05, so H0 was rejected and H1 was accepted, in other words the first hypothesis, customer value has a positive and significant impact on customer retention in Village Credit Institution and it can be received.