The business environment in the telecommunications sector is changing rapidly. In order to keep growing, telecom operators are required to conduct business innovation, sort of them by increasing the value of customer. XYZ also support government’s programs to the telecomunications sector by holding Astinet.
Astinet’s customer which perceived to be technologycally updated and big budget, is expected to purchase other telecommunications services behind Astinet. However, the number of customers who subscribes more than one product is still small. Noting the growing churn rate, coupled with customer satisfaction and loyalty is not better than the industry, it is necessary to study to improve customer satisfaction and loyalty to the Astinet’ service that led to the Cross-Buying other telecommunications services.
This study will research the effect of Customer Relationship Management, Customer Satisfaction and Customer Loyalty toward Cross-Buying in telecommunication product. Because increase in customer value are preferred rather than seeking new customers, considering the cost to find new customers 3-5 times greater than retain existing customers (Farber and Wycoff, 1991).
This research is descriptive verification and a quantitative research which took a questionnaire from 406 respondents who were or had been using Astinet services previously. The data collection is done by distributing questionnaires to Business-to- Business scheme and used Structural Equation Modelling for data analyzed.
The results of factor analyses revealed Customer Relationship Management were found to positively affect customer satisfaction. Customer Satisfaction was found to have direct association with customer loyalty and both customer satisfaction and loyalty-influenced cross-buying.
Keywords: Customer Relationship Management, Customer Satisfaction, Cross-Buying, telecommunications