CUSTOMER RELATIONSHIP MANAGEMENT DRIVES CUSTOMER RETENTION THROUGH ENGAGEMENT AND PERCEIVED VALUE AMONG TIKTOK SHOP USERS

Abstract

This study examines the influence of Customer Relationship Management (CRM), Customer Engagement (CE), and Perceived Value (PV) on Customer Retention (CR) among TikTok Shop users in Indonesia. Despite the rapid growth of social commerce platforms, particularly TikTok Shop, empirical evidence regarding the mechanisms through which platform-specific CRM strategies translate into sustained customer retention remains fragmented. Drawing upon the Stimulus-Organism-Response (S-O-R) framework, this study develops an integrative model positing CRM as an environmental stimulus (S), while customer engagement and perceived value serve as organismic states (O), and customer retention represents the ultimate behavioral response (R). A quantitative survey was conducted among 385 active TikTok Shop users, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that CRM significantly affects CE and PV. Furthermore, CE and PV significantly enhance customer retention. The mediation analysis confirms that CE significantly mediates the relationship between CRM and CR.