Developing Conceptual Model in Customer Relationship Management to Increase Customer Satisfaction for Private Higher Education Institution in Jakarta

Private Higher Education Institution (HEI) in Indonesia is growing rapidly and has to compete to be chosen by potential students. HEI has to increase the quality of service and understand the students’ needs and desires to satisfy them as a customer. Customer Relationship Management (CRM) is a strategy to increase the students’ satisfaction and loyalty. Satisfied students can be a good influencer who attracts potential students by using their excited words. This study aimed to develop a conceptual model to increase students’ in CRM. This research was started by identifying various services through literature study and reviewed by five experts in HEI marketing departments. The questionnaire was distributed to 550 students who are in their third academic study; moreover, only 495 questionnaires were valid to be further processed. This study uses Structural Equation Modeling (SEM) to develop a conceptual model based on its ability to manage variable in large quantity. The findings of this study showed there is a close relationship between the service quality variables and the student satisfaction