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

Abstract

This study was based on the increasing competition between Islamic microfinance institutions where Sharia cooperatives must perform more systematic relationship management to enhance service quality and retain members. The phenomenon that occurs at KSPPS BMT Surya Raharja Sukodadi is the fragmentation of member data, reactive communication patterns; there is no integrated customer relationship management (CRM) system. These problems are addressed through this community service undertaking by implementing a customized and Sharia-based CRM method. Thus, based on the Asset-Based Community Development (ABCD) approach, 36 stakeholders took part in the program, comprising cooperative employees and representatives from among members. The month-long program commenced with a needs assessment, followed by CRM socialising sessions, training and mentorship, implementation support and evaluation. The effectiveness of the program was evaluated through a pre-and post-test method, centered on three main areas understanding CRM principles to strategies for managing relationships and customizing service delivery with associate member data analysis. The results show that members' capabilities have improved significantly, especially in terms of managing member relationships and providing better tailored services. It also encouraged more proactive communication and better responsiveness to member demands. Importantly, the execution also strengthened the core Sharia principles of equity, openness, collaboration, and reliability that became more evident in everyday service workings. Member satisfaction, engagement and retention – all of these levels markedly improved with the adaptation to change. This program generally supports Sustainable Development Goals (SDG), having identified SDG 8 (Decent Work and Economic Growth) for organizing cooperative-based economic activities and SDG 9 (Industry, Innovation and Infrastructure) - regarding a more organized and technology-advanced CRM system implementation. Overall, the project will demonstrate how a systematic and value-based CRM framework can improve managerial capabilities of Sharia cooperatives while promoting sustained member relationships. These results can be further improved and more Islamic cooperatives can adopt this model, with continued capacity building and gradual technology integration for financial inclusion and community-based economic development.