IJLTEMAS International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS) IJLTEMAS 2278-2540 IJLTEMAS 66 10.51583/IJLTEMAS.2026.150700061 Economy The Influence of Service Quality and Local Wisdom on Customer Loyalty in Retail Companies Mediated by Customer Relationship Management Hasan Golan Faculty of Economics and Business University International Batam, Indonesia Indonesia Frederika Rendy Faculty of Economics and Business University International Batam, Indonesia Indonesia Akbar Nahruddien Faculty of Economics and Business University Pancasila Jakarta, Indonesia Indonesia 15 7 745 754 31 07 2026 05 08 2026 12 08 2026 Customer Relationship Management (CRM) Customer Loyalti Service Quality Retail Abstract

This study aims to analyze the influence of Customer Experience, Service Quality, Local Wisdom, and Personalized Marketing on Customer Loyalty with Customer Relationship Management (CRM) as a mediating variable in modern retail companies in Batam City. The study used a quantitative approach with 301 respondents and was analyzed using PLS-SEM. The results showed that Customer Experience, Local Wisdom, and Personalized Marketing had a positive and significant effect on CRM. Customer Experience, Local Wisdom, Personalized Marketing, and CRM also had a positive effect on Customer Loyalty. Conversely, Service Quality did not have a significant effect on CRM. In addition, CRM was able to mediate the relationship between Customer Experience and Customer Loyalty, but not the relationship between Service Quality and Customer Loyalty. The research findings showed that modern retail customer loyalty was more influenced by customer experience, personalized marketing, and the application of local values than service quality alone.

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