Sharia Customer Relationship Management for Member Loyalty, Retention, and Service Quality in Islamic Microfinance Cooperatives

Abstract

This study was based on the increasing competition among Islamic microfinance institutions, requiring Sharia cooperatives to implement more systematic relationship management strategies to enhance service quality and retain members. At KSPPS BMT Surya Raharja Sukodadi, several challenges were identified, including fragmented member data, reactive communication patterns, and the absence of an integrated Customer Relationship Management (CRM) system. These conditions indicate a gap between the need for structured member relationship management and current cooperative service practices. This community service activity aimed to strengthen member relationship management, improve service quality, and support member loyalty and retention through the implementation of a Sharia based CRM approach. The novelty of this activity lies in the integration of CRM practices with Sharia values, including amanah, fairness, transparency, and collaboration, to develop a relationship management approach suitable for Islamic cooperative contexts. The program applied the Asset Based Community Development (ABCD) approach involving 36 stakeholders consisting of cooperative employees and member representatives. The activities included needs assessment, CRM socialization, training and mentoring, implementation support, and evaluation. The results showed improved participant capabilities in managing member relationships, personalizing services, and utilizing member data more effectively. The implementation also encouraged proactive communication, improved responsiveness to member needs, and strengthened the application of Sharia principles in daily service activities. This activity demonstrates that a systematic and value based CRM framework can improve managerial capabilities of Sharia cooperatives, strengthen member engagement and retention, and support sustainable financial inclusion. The program contributes to Sustainable Development Goal (SDG) 8 on Decent Work and Economic Growth and SDG 9 on Industry, Innovation and Infrastructure through improved cooperative management practices and technology supported CRM implementation.