Journal of Management and Social Sciences Volume.
No.
May 2026 e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
DOI: https://doi.
org/10.
55606/jimas.
Tersedia: https://journal-stiayappimakassar.
id/index.
php/Jimas Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction Alvin Lesmana1* Universitas Widya Dharma Pontianak.
Indonesia *Corresponding author: alvin_lesmana@widyadharma.
Abstract.
This study aims to analyze the effect of personalized marketing on customer satisfaction and customer retention, as well as to explain the role of customer satisfaction as a mechanism linking marketing personalization to customersAo decision to remain with a brand.
The background of this study is based on the increasing use of data-driven marketing strategies, product recommendations, personalized promotions, and digital communication tailored to customer preferences.
In an increasingly competitive business environment, companies are required not only to attract new customers but also to retain existing customers through relevant, convenient, and valuable experiences.
This study employed a quantitative explanatory approach, with the population consisting of customers who had received personalized marketing from a particular company or brand.
The sampling technique used was purposive sampling, with the criteria that respondents had received personalized promotions and had made repeat purchases.
The total sample consisted of 110 respondents.
Data were collected using a structured questionnaire with a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling.
The findings show that personalized marketing has a positive and significant effect on customer satisfaction.
This indicates that promotions, recommendations, and marketing messages that are relevant to customer needs can create more positive customer experiences.
Customer satisfaction is also found to have a positive and significant effect on customer retention, meaning that satisfied customers are more likely to make repeat purchases, continue using products or services, and avoid switching to competitors.
In addition, personalized marketing has a direct effect on customer retention, although its effect becomes stronger when mediated by customer satisfaction.
The implications of this study emphasize that companies need to develop personalization strategies that are not only data-driven but also relevant, ethical, non-intrusive, and oriented toward customer value.
Therefore, personalized marketing can serve as an important strategy for improving customer satisfaction and maintaining long-term customer retention.
Keywords: Customer Retention.
Customer Satisfaction.
Personalized Marketing.
PLS-SEM.
Relationship Marketing.
INTRODUCTION
The development of digital marketing has significantly transformed the way firms build and maintain relationships with customers.
In a business environment increasingly shaped by data, algorithms, artificial intelligence, and cross-channel interactions, companies can no longer rely solely on mass promotional messages.
Digital customers increasingly expect experiences that are relevant, fast, convenient, and aligned with their individual needs.
This condition is particularly evident in Indonesia, where internet users reached 212 million at the beginning of 2025, representing 74.
6% of the total population, while social media user identities reached 143 million in the same period (DataReportal.
At the same time.
IndonesiaAos digital economy continues to show strong momentum, with its Gross Merchandise Value projected to approach US$100 billion in 2025, and e-commerce remaining the largest contributor to the national digital economy (Google.
Temasek, & Bain, 2.
These developments indicate that the interaction space between brands and customers is expanding, but also becoming increasingly competitive.
Naskah Masuk: 11 April 2026.
Revisi: 25 April 2026.
Diterima: 13 Mei 2026.
Terbit: 31 Mei 2026 Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction In such a context, personalized marketing has become a crucial strategy because firms need to understand customers not merely as market targets, but as individuals with distinct preferences, behaviors, and expectations.
Personalized marketing refers to a marketing strategy that adapts messages, product recommendations, promotional offers, communication channels, and interaction timing based on customer data and behavioral patterns.
This strategy has evolved from conventional customer relationship management into a more predictive and real-time approach supported by big data, marketing analytics, machine learning, and artificial intelligence (Wedel & Kannan, 2016.
Erevelles et al.
, 2016.
Davenport et al.
, 2020.
Huang & Rust, 2.
In practice, personalized marketing may appear in the form of product recommendations on e-commerce platforms, behavior-based advertising, customized promotional emails, mobile app notifications, special offers based on behavioral segmentation, or social media content curated according to user preferences.
This approach is important because customers tend to respond more positively when marketing messages are perceived as relevant, useful, and consistent with their needs (Bleier & Eisenbeiss, 2015.
Bleier et al.
, 2018.
Weidig et al.
, 2.
Thus, personalization should not be viewed merely as a communication technique, but as part of customer experience design that can shape customersAo evaluations, emotions, and behavioral decisions toward a brand.
From the perspective of relationship marketing theory, personalized marketing can strengthen long-term relationships between customers and companies because it creates the perception that a firm understands customer needs more accurately.
Relationship marketing emphasizes the importance of trust, commitment, value, and continuous interaction in maintaining customer relationships (Morgan & Hunt, 1994.
Payne & Frow.
When customers receive offers that match their interests or needs, they are more likely to feel recognized, assisted, and valued.
This condition can improve their evaluation of the products or services offered.
Personalized touchpoints have also been shown to influence customer experience responses across cognitive, affective, social, and behavioral dimensions, depending on the personalization design, the stage of the customer journey, and customer-specific characteristics (Weidig et al.
, 2.
Therefore, personalized marketing has a strategic role in creating a more meaningful customer experience, rather than merely encouraging short-term transactions.
One of the key variables in this study is customer satisfaction.
Customer satisfaction is generally understood as a customerAos evaluation after comparing expectations with the actual experience received (Oliver, 1980.
Oliver, 1.
In the digital context, customer JIMAS - VOLUME 5.
NO.
MAY 2026
e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
satisfaction is not only determined by product quality, price, or service performance, but also by ease of access, information relevance, recommendation quality, response speed, and interface convenience (Anderson & Srinivasan, 2003.
Lemon & Verhoef, 2016.
Verhoef et al.
, 2.
Personalized marketing can enhance customer satisfaction because customers do not need to spend excessive time searching for products or information that fit their needs.
Relevant recommendations help customers make decisions more efficiently, while personalized promotions can increase perceived value.
Recent research on AI-powered personalized advertising shows that perceived personalization significantly enhances perceived relevance and perceived usefulness, which subsequently strengthens positive customer responses to marketing messages (An et al.
, 2.
This finding suggests that customer satisfaction in personalized marketing is not only produced by good products, but also by experiences that feel relevant, useful, and valuable.
In addition to satisfaction, customer retention is a central issue in digital Customer retention refers to a firmAos ability to maintain customers so that they continue using products, repurchase, and do not easily switch to competitors.
marketing literature, retention is often considered more strategic than customer acquisition because retained customers tend to generate greater long-term value for firms (Reichheld & Schefter, 2000.
Kumar & Reinartz, 2.
Retention is closely related to loyalty, although the two concepts are not identical.
Loyalty reflects customersAo attitudes and commitment, whereas retention emphasizes the continuity of customer behavior in using a product or service.
Personalized marketing can support retention because it enables firms to maintain customer proximity through continuous, relevant, and contextual communication.
When customers perceive that a platform or brand consistently understands their needs, their likelihood of remaining with that brand Nevertheless, the effect of personalized marketing on satisfaction and retention is not always linear or entirely positive.
Personalization has an ambivalent nature because it relies heavily on the collection, processing, and use of customer data.
On the one hand, customers value relevant and convenient experiences.
On the other hand, they may feel uncomfortable when personalization is perceived as too intense, overly accurate, or This phenomenon is known as the personalizationAeprivacy paradox, which refers to the tension between customersAo desire for personalized experiences and their concerns about the use of personal data (Aguirre et al.
, 2015.
Martin & Murphy, 2017.
Cloarec, 2.
In the context of the attention economy, this paradox becomes Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction increasingly important because companies compete not only for customer data but also for customersAo limited attention.
Cloarec .
emphasizes that customers may appreciate the benefits of personalization while simultaneously resisting data sharing when they feel that their privacy is threatened.
Trust is another factor that cannot be ignored.
In digital marketing, trust functions as a psychological mechanism that links technology, customer experience, and long-term behavioral decisions.
Customers may appreciate relevant recommendations, but they may not be willing to maintain a relationship with a brand if they do not trust how the company manages their data and communication practices.
Research on AI-driven personalization shows that AI-enabled personalization influences trust, perceived usefulness, and privacy concerns, which are subsequently associated with customer engagement (Teepapal et al.
Another study in the Indonesian e-commerce context found that AI-based personalization and service quality positively affect customer loyalty, while perceived privacy risk has a negative effect (Hassan et al.
, 2.
These findings indicate that personalization must be managed ethically, transparently, and with a strong orientation toward customer value in order to enhance satisfaction and sustain retention.
Based on the above discussion, research on the effect of personalized marketing on customer satisfaction and customer retention is both theoretically and practically relevant.
Theoretically, this study can enrich the digital marketing literature by explaining how personalization affects customer satisfaction and how satisfaction contributes to customer Practically, the findings may assist firms in designing marketing strategies that are not only aggressive in driving transactions but also capable of building relevant, trustworthy, and sustainable customer experiences.
Therefore, this study aims to analyze the effect of personalized marketing on customer satisfaction, examine the effect of customer satisfaction on customer retention, and explain the role of customer satisfaction as a mechanism linking personalized marketing to customer retention.
This focus is important because the success of digital marketing should no longer be measured only by clicks, impressions, or short-term conversions, but also by a companyAos ability to maintain customers in long-term relationships that create mutual value.
LITERATURE REVIEW
Personalized marketing refers to a marketing approach that adapts messages, product recommendations, promotional offers, communication channels, and interaction timing based on customer characteristics and behavioral data.
This concept has evolved from relationship marketing and customer relationship management into a more data82 JIMAS - VOLUME 5.
NO.
MAY 2026
e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
driven, predictive, automated, and contextual strategy.
In digital marketing, personalization is no longer limited to simple segmentation, but is increasingly supported by customer analytics, big data, machine learning, and artificial intelligence, which allow firms to identify customer preferences more quickly and accurately (Wedel & Kannan.
Erevelles et al.
, 2016.
Rust & Huang, 2014.
Davenport et al.
, 2020.
Huang & Rust.
Recent literature also shows that personalized marketing has developed into a broad research area covering themes such as personalized recommendations, personalized advertising, personalized relationships, customer insights, and the personalizationAe privacy paradox (Salonen & Karjaluoto, 2016.
Tong et al.
, 2020.
Weidig et al.
, 2.
this sense, personalized marketing can be understood as a strategy aimed at making customer interactions more relevant, efficient, and valuable.
A recent conceptual synthesis of personalized touchpoints confirms that personalization may influence customer experience responses across cognitive, affective, social, and behavioral dimensions, depending on personalization design, customer journey stage, and customer Theoretically, personalized marketing can be explained using the StimulusAe OrganismAeResponse framework.
In this framework, personalized marketing functions as an external stimulus received by customers through promotional messages, product recommendations, mobile app notifications, email marketing, or customized digital These stimuli influence customersAo internal states, such as perceived relevance, perceived usefulness, trust, comfort, and satisfaction, before shaping behavioral responses such as repeat purchase, loyalty, and retention (Mehrabian & Russell, 1974.
Donovan & Rossiter, 1982.
Jacoby, 2002.
Tyrvyinen et al.
, 2.
Previous studies indicate that personalized messages tend to be more effective when customers perceive them as relevant to their needs, non-intrusive, and beneficial in supporting decisionmaking (Tam & Ho, 2006.
Zhang & Wedel, 2009.
Xu et al.
, 2011.
Bleier & Eisenbeiss.
Bleier et al.
, 2.
Thus, personalized marketing should not be viewed merely as a promotional tool, but as a mechanism for creating closer and more contextual customer Customer satisfaction refers to customersAo evaluation of their experience after comparing their initial expectations with the actual performance of a product, service, or brand interaction.
ExpectationAeconfirmation theory explains that satisfaction occurs when the actual experience meets or exceeds customer expectations, while dissatisfaction arises when perceived performance falls below expectations (Oliver, 1980.
Oliver, 1.
Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction In the digital context, customer satisfaction is not only determined by product quality and price, but also by access speed, information relevance, navigation ease, recommendation quality, data security, and cross-channel interaction convenience (McKinney et al.
, 2002.
Anderson & Srinivasan, 2003.
Fornell et al.
, 1996.
Verhoef et al.
, 2009.
Lemon & Verhoef, 2.
Personalized marketing has the potential to enhance customer satisfaction because it reduces customersAo information search burden and helps them obtain products or services that better fit their needs.
When customers receive relevant recommendations, they are more likely to perceive the decision-making process as easier, more efficient, and more valuable.
Personalization can also create the impression that the company understands customers individually, making the experience feel more personal and meaningful (Ball et al.
, 2006.
Payne & Frow, 2017.
Verhoef et al.
, 2.
However, the effect of personalization on satisfaction is not automatically positive.
Personalization that is too frequent, aggressive, or overly accurate may create discomfort because customers may feel that their behavior is being monitored.
Therefore, the success of personalized marketing depends on the balance between relevance, usefulness, trust, and customer privacy (Aguirre et al.
, 2015.
Martin & Murphy, 2017.
Cloarec, 2.
The literature on the personalizationAeprivacy paradox emphasizes that customers often appreciate the value of personalization while simultaneously expressing concern about the exploitation of personal data by firms.
Customer retention refers to a firmAos ability to maintain customers so that they continue using its products or services over the long term.
Retention is different from loyalty, although the two concepts are closely related.
Loyalty emphasizes customersAo positive attitudes, commitment, and brand preference, whereas retention focuses more on the continuity of customer behavior, such as repeat purchase, continued use, and a lower tendency to switch to competitors (Zeithaml et al.
, 1996.
Reichheld & Schefter, 2000.
Bolton et al.
, 2000.
Kumar & Reinartz, 2.
In the digital context, retention is particularly important because customers have many alternatives, relatively low switching costs, and easy access to competitor information.
Therefore, firms need to build consistent, relevant, and valuable customer experiences so that customers do not only make one-time transactions but remain in long-term relationships with the brand.
Personalized marketing can contribute to customer retention through two main First, personalization creates more relevant experiences, allowing customers to perceive that the platform or brand fits their needs.
Second, personalization can increase satisfaction, trust, and customer attachment, which subsequently encourage repeat JIMAS - VOLUME 5.
NO.
MAY 2026
e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
purchase intention and continued service usage (Srinivasan et al.
, 2002.
Anderson & Srinivasan, 2003.
Gefen et al.
, 2003.
Kumar & Reinartz, 2.
Customer experience research also shows that positive and consistent experiences strengthen loyal behavior, especially when customers perceive that their interactions with a company provide both functional and emotional value (Verhoef et al.
, 2009.
Lemon & Verhoef, 2016.
Jain et , 2.
Thus, customer retention is not only determined by price or product quality, but also by the firmAos ability to maintain relationship relevance with customers.
The relationship between personalized marketing, satisfaction, and customer retention can be explained through the logic of customer experience.
Personalized marketing provides stimuli in the form of customized messages, recommendations, and When these stimuli are perceived as relevant and useful, customers are more likely to experience positive evaluations, which ultimately increase satisfaction.
Satisfaction then becomes the psychological basis for customers to continue using the service, repurchase, and reduce their intention to switch to competitors (Oliver, 1999.
Anderson & Srinivasan, 2003.
Lemon & Verhoef, 2016.
Weidig et al.
, 2.
In other words, personalized marketing may not only influence retention directly, but also indirectly through customer satisfaction.
From the perspective of relationship marketing theory, long-term relationships between companies and customers are formed through trust, value, commitment, and mutually beneficial interactions (Morgan & Hunt, 1994.
Payne & Frow, 2.
Personalized marketing can strengthen this relationship because customers may feel that the company understands their needs more accurately.
However, this relationship may weaken if customers perceive that their personal data are used in a non-transparent or intrusive manner.
Therefore, trust and privacy concern should be considered important contextual factors in understanding the effect of personalized marketing on customer satisfaction and retention (Aguirre et al.
, 2015.
Martin & Murphy, 2017.
Cloarec, 2.
Recent research also indicates that algorithm transparency and algorithm literacy may reduce privacy concerns in highly personalized advertising contexts.
Based on this theoretical review, this study positions personalized marketing as the independent variable, customer satisfaction as the mediating variable, and customer retention as the dependent variable.
Conceptually, the higher the perceived quality of personalization, the more likely customers are to feel satisfied.
This satisfaction then strengthens customersAo tendency to stay, repurchase, and continue using the same product or service.
Therefore, the main theoretical proposition of this study is that personalized Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction marketing positively affects customer satisfaction, customer satisfaction positively affects customer retention, and customer satisfaction mediates the effect of personalized marketing on customer retention.
RESEARCH METHODS
This study employed a quantitative explanatory approach because it aimed to examine the effect of personalized marketing on customer satisfaction and customer A quantitative approach was considered appropriate because the relationships among variables could be measured objectively through indicators arranged in a structured questionnaire.
The explanatory design was used because this study did not merely describe the phenomenon of personalized marketing, but also explained the causal relationships among variables based on empirical data obtained from respondents (Creswell & Creswell, 2018.
Sekaran & Bougie, 2.
The research model positioned personalized marketing as the independent variable, customer satisfaction as the mediating variable, and customer retention as the dependent Through this model, the study examined whether personalized marketing strategies could increase customer satisfaction and whether such satisfaction could encourage customers to make repeat purchases and maintain their relationship with a brand or company.
The population of this study consisted of customers who had received personalized marketing from a particular company or brand.
In this study, personalized marketing refers to personal promotions, product recommendations, special offers, application notifications, promotional emails, or marketing messages tailored to customer preferences and behavior.
The sampling technique used in this study was purposive sampling, which refers to the selection of respondents based on specific criteria relevant to the research objectives.
This technique was selected because not all customers have experience with personalized The criteria for respondents were customers who had received personalized promotions from a particular company or brand and customers who had made repeat purchases after receiving such promotions.
The total sample consisted of 110 This sample size was considered adequate for a quantitative study with a simple model consisting of three main variables, particularly when analyzed using a variance-based approach such as PLS-SEM (Hair et al.
, 2.
The data were collected by distributing questionnaires to respondents who met the research criteria.
The questionnaire consisted of closed-ended statements so that JIMAS - VOLUME 5.
NO.
MAY 2026
e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
respondents could provide measurable evaluations of their experiences in receiving personalized marketing, their level of satisfaction, and their tendency to remain Each statement was measured using a five-point Likert scale, ranging from 1 = strongly disagree to 5 = strongly agree.
The Likert scale was considered suitable because it can measure customer perceptions, attitudes, and evaluations toward marketing experiences.
The research instrument was developed based on the concepts of personalized marketing, customer satisfaction, and customer retention, which have been widely used in digital marketing and relationship marketing studies (Oliver, 1999.
Anderson & Srinivasan, 2003.
Lemon & Verhoef, 2016.
Kumar & Reinartz, 2.
The following table presents the operational definition, indicators, item codes, and measurement scale of each research variable.
Table 1.
Operationalization of Variables Variable Operational Definition Indicator Personalized A marketing strategy that Suitability of promotions Marketing customizes messages, with customer needs (X) recommendations, and offers based on customer needs, preferences, or behavior.
Relevance of product or service recommendations Timeliness of promotional Suitability of communication channels used by the brand Perception that the brand understands customer Customer A positive customer evaluation Satisfaction with the Satisfaction after comparing expectations experience of receiving (M) with the experience received personalized promotions from products, services, or marketing interactions.
Satisfaction with the relevance of offers received Satisfaction with the ease of finding suitable products Satisfaction with the perceived benefits of personalized promotions The extent to which the experience meets customer Code
Scale
PM1
Likert
1Ae5
PM2
PM3
PM4
Likert
1Ae5
Likert
1Ae5
Likert
1Ae5
PM5
Likert
1Ae5
CS1
Likert
1Ae5
CS2
CS2
Likert
1Ae5
Likert
1Ae5
CS2
Likert
1Ae5
CS2
Likert 1Ae5 Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction Variable Customer Retention (Y) Operational Definition Indicator CustomersAo tendency to continue Intention to make repeat using products or services, make purchases repeat purchases, and avoid switching to competitors.
Intention to continue using the brandAos products or Tendency not to switch to competing brands Willingness to maintain a relationship with the brand
Willingness to recommend
the brand to others Code
Scale
CS2
Likert
1Ae5
CS2
Likert
1Ae5
CS2
CS2
CS2
Likert
1Ae5
Likert
1Ae5
Likert
1Ae5
FINDINGS AND DISCUSSION
Data analysis was conducted to examine the effect of personalized marketing on customer satisfaction and customer retention.
The research model consisted of three main constructs: personalized marketing as the independent variable, customer satisfaction as the mediating variable, and customer retention as the dependent variable.
The analysis was conducted using Partial Least Squares Structural Equation Modeling because the study focused on predicting relationships among variables and was appropriate for a moderate sample size.
The results show that all relationships among variables have positive coefficients.
This indicates that the better the personalized marketing received by customers, the higher their satisfaction and the stronger their tendency to remain customers and make repeat The coefficient of determination shows that personalized marketing explains 8% of the variance in customer satisfaction.
Meanwhile, personalized marketing and customer satisfaction together explain 58.
6% of the variance in customer retention.
These values indicate that the model has adequate explanatory power in understanding customer retention behavior.
Table 2.
Hypothesis Testing Results Hypothesis Relationship Personalized Marketing Ie Customer Satisfaction Customer Satisfaction Ie Customer Retention Personalized Marketing Ie Customer Retention Personalized Marketing Ie Customer Satisfaction Ie Customer Retention JIMAS - VOLUME 5.
NO.
MAY 2026
Path tpCoefficient value value Result 000 Supported 000 Supported 004 Supported 000 Supported e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
Based on Table 1, personalized marketing has a positive and significant effect on customer satisfaction, with a path coefficient of 0.
631, a t-value of 9.
214, and a p-value This result indicates that the more relevant, timely, and suitable the personalized promotions received by customers, the higher their level of satisfaction.
Therefore.
H1 is Customer satisfaction also has a positive and significant effect on customer retention, with a path coefficient of 0.
587, a t-value of 6.
842, and a p-value of 0.
This finding indicates that satisfied customers are more likely to make repeat purchases, continue using the brandAos products or services, and avoid switching to competitors.
Therefore.
H2 is supported.
Furthermore, personalized marketing has a direct positive effect on customer retention, with a path coefficient of 0.
248, a t-value of 2.
912, and a p-value of 0.
Although this direct effect is smaller than the indirect effect through customer satisfaction, it still indicates that personalized promotions can encourage customers to maintain their relationship with a brand.
Therefore.
H3 is supported.
The indirect effect test shows that customer satisfaction mediates the effect of personalized marketing on customer retention.
The indirect effect value of 0.
370, with a t-value of 5.
881 and a p-value of 0.
000, indicates that personalized marketing is more effective in building customer retention when it first creates customer satisfaction.
Therefore.
H4 is supported.
The first finding shows that personalized marketing has a positive effect on customer satisfaction.
This result indicates that customers tend to feel more satisfied when companies provide promotions, recommendations, and marketing messages that match their needs.
In the digital marketing context, customers are often exposed to numerous product choices and large amounts of information.
Personalized marketing helps reduce customersAo search burden because the system or brand presents more relevant options.
When customers perceive that the promotions they receive are not random but aligned with their preferences and previous purchasing experiences, they are more likely to evaluate the interaction as valuable.
This finding is consistent with the view that customer satisfaction emerges when actual experience meets or exceeds customer expectations (Oliver, 1.
Personalized marketing can also create the impression that a company understands its customers at a more personal level.
The suitability of messages, timing, and communication channels makes customers feel recognized and valued.
This is important Personalized Marketing and Customer Retention: The Mediating Role of Customer Satisfaction because in modern marketing, customers evaluate brands not only based on product functionality but also based on the experience they receive during interactions with the This finding supports the customer experience literature, which emphasizes that customer experience is formed through a series of relevant, easy, and consistent interactions across various touchpoints (Lemon & Verhoef, 2.
Thus, personalized marketing does not only function as a promotional tool but also as a mechanism for creating a more positive customer experience.
The second finding shows that customer satisfaction has a positive effect on customer retention.
Satisfied customers tend to have stronger reasons to continue using products or services from the same brand.
Satisfaction creates comfort, trust, and confidence that their choice is appropriate.
In a highly competitive digital market, customers actually have many alternatives.
However, when customers are satisfied, their tendency to switch to competitors may decrease.
This result is consistent with relationship marketing literature, which explains that satisfaction is one of the key foundations for building long-term relationships between customers and companies (Anderson & Srinivasan, 2003.
Kumar & Reinartz, 2.
The third finding indicates that personalized marketing has a direct effect on customer retention.
This means that personalization can make customers feel closer to a brand, even before customer satisfaction is considered as a mediator.
Promotions that match customer needs, accurate product recommendations, and relevant communication can strengthen customersAo habits of continuing to use a particular service.
However, the direct effect of personalized marketing on customer retention is smaller than its effect on customer satisfaction.
This suggests that personalized marketing is more effective in building retention when customers first feel satisfied with the experience provided.
The fourth finding confirms the mediating role of customer satisfaction.
Effective personalized marketing not only directly encourages customers to stay but also creates satisfaction, which then strengthens retention.
In this context, customer satisfaction becomes a psychological bridge between the experience of receiving personalized promotions and the customerAos decision to maintain a relationship with the brand.
Therefore, companies should not only send personalized messages but also ensure that such messages are truly relevant, non-intrusive, and beneficial to customers.
Practically, the results imply that companies need to develop personalized marketing carefully and with a strong customer-value orientation.
Good personalization is not merely about mentioning a customerAos name in a promotional message.
It requires understanding customer needs, habits, interaction timing, product preferences, and JIMAS - VOLUME 5.
NO.
MAY 2026
e-ISSN: 2963-5497.
dan p-ISSN: 2963-5047.
Hal.
purchasing context.
Companies also need to maintain transparency in data usage so that customers do not feel excessively monitored.
When personalized marketing is implemented in a relevant and ethical manner, it can increase customer satisfaction and strengthen long-term customer retention.
CONCLUSION AND RECOMMENDATION
This study concludes that personalized marketing has a positive effect on customer satisfaction and customer retention.
Personalized promotions, product recommendations, and marketing communication that align with customer needs are proven to create more relevant, convenient, and valuable experiences.
Customers who perceive that a brand understands their preferences tend to show higher satisfaction with the products, services, and marketing interactions they receive.
Furthermore, customer satisfaction plays an important role in strengthening customer retention.
Personalized marketing not only directly influences customersAo decision to continue using a product or service but also works indirectly through customer satisfaction.
Therefore, companies need to develop personalization strategies that are relevant, ethical, non-intrusive, and customer-oriented in order to maintain long-term relationships with their customers.
REFERENCES