Factors influencing the loyalty of shariah bank customers in Riau province: The mediation of Islamic personality

This research raises the theme of the factors influencing customer loyalty in Islamic banks. Service quality, customer relationship management, company image, and switching costs are four factors that will be studied, with Islamic personality as a mediator. Islamic personality is a differentiator from previous researchers, and this variable is still minimally studied, so the author is interested in conducting this research. Islamic banks are expected to grow and develop in countries where the majority of the population is Muslim. However, in terms of market share, the growth of Islamic banks is still relatively stagnant. This occurs due to various obstacles, such as the lack of understanding of employees of Islamic bank products and contracts, inadequate ATM facilities, transaction fees, expensive product fees, and others. This research is a quantitative study that uses Islamic bank customers who are Muslims in the Riau province as the population. The sampling technique of this study is cluster sampling. To determine the number of samples, the sample formula from Godden is used, namely 390 respondents. Data collection for this study used questionnaires conducted face to face and Google form. The collected data was processed using Partial Least Square-Structural Equation Modelling (PLS-SEM). The results are service quality, customer relationship management, corporate image, and switching costs affect customer loyalty. Islamic personality mediates service quality and switching costs to partial loyalty, while Islamic personality mediates customer relationship management and corporate image has no mediation. This research has theoretical, practical, and methodological implications. Theoretically, this research can develop a theory that identifies the relationship of factors that affect customer loyalty. This research not only contributes to the understanding of customer behavior in the Islamic financial market but also provides additional insights into how a person’s religious values and Islamic identity influence the interaction between factors that influence customer loyalty. The practical implication is that Islamic banking in Riau Province can improve service quality, customer relationship management, corporate image, and switching costs to maintain and gain customer loyalty. By understanding how Islamic personality mediates the relationship between certain factors and customer loyalty, banks can customize their marketing and service strategies to better suit individual needs and preferences. The methodological contribution is that in terms of the sampling frame, this research contributes to methodological studies, specifically focusing on the Riau province. This province is one of the provinces where the majority of the population is Muslim and is developing a halal industry.