Abstract:

Customer loyalty is an important and strategic objective of the banking industry, which is achievable when the expectations of a product are fulfilled and satisfied. Therefore, customer satisfaction should be maintained by developing a deep interaction between customers and service providers. This study aims to analyze the effect of service quality, customer engagement, and customer satisfaction on customer loyalty at Bank Central Asia (BCA) Solo. A qualitative approach using the partial least squares structural equation modeling (PLS-SEM) was employed, to provide an insight for the marketing manager in developing strategies to increase customer loyalty. More specifically, the results showed that service quality has a positive effect on customer satisfaction, while customer satisfaction and engagement also have positive effects on customer loyalty.