CUSTOMER LOYALTY MODEL: THE MEDIATION ROLE OF SATISFACTION AND WORD OF MOUTH ON OPERATIONAL EXCELLENCE AND CUSTOMER EXPERIENCE

Abstract

This study aims to analyze the influence of Operational Excellence and Customer Experience on Customer Loyalty with Satisfaction and Word of Mouth as mediating variables in House of Metamorfit members. This study is motivated by the increasing competition in the fitness services industry, so companies need to understand the factors that can build customer loyalty sustainably. Customer loyalty is not only influenced by the quality of operational services, but also by customer experience and positive communication between customers formed during the process of using the service. This study uses a quantitative approach. Data were collected by distributing questionnaires to House of Metamorfit members who met the research criteria. The number of respondents analyzed in this study was 396 respondents with a sampling technique using purposive sampling. The data analysis method used is Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) with the help of the SmartPLS application. The results of the study indicate that Operational Excellence and Customer Experience have a positive and significant effect on Satisfaction and Word of Mouth. However, Operational Excellence and Customer Experience do not have a significant direct effect on Customer Loyalty. Satisfaction and Word of Mouth are proven to have a positive and significant effect on Customer Loyalty. Furthermore, satisfaction fully mediates the relationship between Operational Excellence and Loyalty, as well as between Customer Experience and Loyalty. Word of Mouth also acts as a mediator in the relationship between Operational Excellence and Customer Experience on Loyalty. The findings of this study indicate that customer loyalty is formed primarily through customer satisfaction and word of mouth communication, which emerges from the customer's service experience. Therefore, companies need to strengthen the quality of the customer experience, maintain consistent operational quality, and encourage positive word of mouth to increase customer loyalty.