ABSTRACT
Free trade has touched the banking industry in the ASEAN region. Hence, the banking industries in Indonesia inevitably have to improve their performance in order to compete among ASEAN countries. One way to deal with this competition is to implement Customer Relationship Management (CRM) in order to maintain good relationships with customers, thereby winning their loyalty to the bank. This study was intended to analyze the effect of CRM, through bonding, empathy, reciprocity, trust and responsiveness variables, towards customer retention. The survey was conducted at one of the banks in Surabaya, specifically on priority banking customers. From the 66 questionnaires distributed, we obtained 49 valid data. The data were analyzed by multiple linear regression analysis using SPSS. The results showed that bonding, trust and responsiveness have a significant effect on customer retention. Meanwhile, empathy and reciprocity showed no significant effect on customer retention.
