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International Journal of Computer Applications (0975 – 8887)Volume 181 – No. 39, January 2019Electronic Customer Relationship Management (E-CRM)Application as Efforts to Increase Customer Retention ofMicro Small and Medium Enterprises (MSMEs) in BantenIndonesiaVidila RosalinaHamdanAgung TriayudiFaculty of Information Technology- Universitas Serang RayaJl. Raya Serang-Cilegon Km.5Taman Kopassus Serang BantenIndonesiaFaculty of Economy - UniversitasSerang RayaJl. Raya Serang-Cilegon Km.5Taman Kopassus Serang BantenIndonesiaDepartement of Informatic–Universitas NasionalJakarta IndonesiaABSTRACTCurrently, the Micro, Small and Medium Enterprises(MSMEs) in Banten Indonesia mostly still manage theircustomers in conventional ways, the touch of informationtechnology has not been done much. One approach to modernbusiness is to pay attention to the factors of good relationshipswith customers, not only before the transaction, but also afterthe transaction. The Information Technology System used tomanage customer relationships with the aim of increasingcustomer retention is called Customer RelationshipManagement (CRM). The existing CRM software is moreoriented to large companies that are already established, sothat it will cause some discrepancies when applied in MSMEs.This study tries to develop E-CRM software that is tailored tothe business needs of MSMEs in Banten by using a localapproach to facilitate users in their use. This feature in the ECRM will help MSMEs in implementing customerrelationship management so that they can increase theircompetitiveness with other companies in maintaining thebusiness they are running and as a means to obtain a widernew market. The approach used by local policy is throughobservations made on MSMEs in the Banten region. Theapplication developed in this paper is based on 9characteristics of the Banten MSMEs produced in previousstudies [1] and the E-CRM UMKM blue print model that hasbeen published in international seminars [2]. This applicationdevelopment used the stages that exist in the waterfall modelmethod, namely planning, analysis, design, andimplementation. The results of the E-CRM UMKMApplication are expected to increase customer retention andbuild global marketing for MSMEs in the Banten region ofIndonesia.KeywordsCustomer relationship management; electronic customerrelationship management; electronic customer relationshipmanagement application; micro and medium enterprises1. INTRODUCTIONMicro, Small and Medium Enterprises (MSMEs) are one ofthe driving sectors of the Indonesian economy that cansurvive in the face of intense global business competition liketoday. The number of workers in the MSME sector in early2012 was almost 80 million people, this requires moreattention to encourage MSME managers to improve theirbusiness empowerment. There are several factors thatinfluence the performance of MSMEs in maintaining theirbusiness, including financing, human resources, market share,business climate, supporting facilities and infrastructure, andinformation access [3].There are several obstacles that can hinder the performance ofMSMEs in maintaining their business. Peni Sawitri, et al.(2012) said that the obstacles that are often faced by MSMEsnamely having difficulty in marketing their products andmaintaining existing markets, as well as constraints toinnovation and financial management that have not beenoptimal have caused MSME business actors to not last long.To be able to survive in maintaining its business, MSMEs arerequired to be able to start implementing various strategies intheir business development efforts. Every MSME businessactor is not only required to be able to create unique productsbut also can market products. Without a good marketingstrategy, it can be ensured that the empowerment of MSMEscannot grow rapidly [4].Marketing is growing rapidly and understanding consumerbehavior is one strategy in the success of marketing products[5]. The obstacle that is often faced by most MSMEs is thedifficulty of marketing their products and maintaining existingmarkets in addition to several other obstacles such as notoptimal innovation, household finance mixed with traditionalfinance and industrial management. Understanding andmaintaining customers is one of the strategies in the successof the company. This often becomes a major obstacle toMSMEs in the midst of increasingly fierce competition.MSMEs need to maintain good relationships with customersand increase their loyalty through knowledge and fulfillmentof customer needs quickly and precisely. CustomerRelationship Management (CRM) as an informationtechnology application will be able to overcome this problembecause CRM aims to manage customer relationships. CRMcan help MSMEs develop new products based on completeknowledge of customer desires, market dynamics andcompetitors. Thus in the context of MSMEs, they will get abetter understanding of their customers and their needs on thecombination of data warehouse, data bank and help desk orcall center.This research was conducted to develop applications orElectronic Customer Relationship Management (E-CRM)software for MSMEs in the Banten region of Indonesia. CRMapplications are now widely distributed in the market, mostlymade by American and European companies that have already1

International Journal of Computer Applications (0975 – 8887)Volume 181 – No. 39, January 2019implemented CRM in their companies. AMR Research reportsseveral CRM software providers such as Siebel Systems,Microsoft, Clarify (Nortel Networks), PeopleSoft and Oracleas market leaders. Meanwhile, CRM professional servicecompanies which are market leaders such as Accenture, ArtTechnology Group, Cambridge Technology Partners, CSC,Deloitte Consulting, EDS, eLoyalty, Cap Gemini Ernst &Young, IBM Global Services, KPMG Consulting and PriceWaterhouse Coopers. This shows that CRM softwareproviders are mostly foreign companies that might makeMSMEs reluctant to use CRM applications into their businessventures, because of the high cost of the application andforeign vendors still lack understanding of unique small andmedium business process preparation [6] [11] [12] [13]. Thisresearch is motivated by the fact that there are currently noMSMEs in the Banten province of Indonesia that haveimplemented E-CRM, although many MSMEs have realizedthe importance of E-CRM and the use of information systemsis a necessity that cannot be avoided by any business theforemost position in an industry. The following are MSMEsdata in the Banten province (Table 1)Table 1: MSME Data Based on Business Units in Banten ProvinceBusiness CategoryMicroSmallMediumTotalMining and excavation2.463235192.717Processing industry79.9289.19278790.907Electricity, gas and water1653286283Construction3.7816412214.643Retail and trade330.95993.8522.685427.496Accommodation and provision offood and drink127.78824.585452150.825Transportation, warehousing andcommunication161.0698.134431169.634Financial intermediary5965984621.656Real estate, rental business46.1785.19257251.942Educational services8.4652.39228111.138Health services and socialactivities5.1971.3831586.738Community, social culture,entertainment and otherindividuals services49.9126.99514357.050Individual services that 309984.118(Source: dinkopukm.bantenprov.go.id)Meanwhile, based on a survey conducted in 2017 the level ofutilization of CRM / E-CRM in MSMEs in Banten provinceturned out that from sample data of 30 respondents wereknown 100% of MSME actors had not utilized andimplemented CRM and E-CRM in managing relationshipswith customers (Figure 1) [7].2

International Journal of Computer Applications (0975 – 8887)Volume 181 – No. 39, January 2019oftenevernumber ofrespondentssometimesnever010203040Figure: 1 Utilization Level of CRM/E-CRM in MSMESThis is what motivates this research to be conducted to helpMSMEs in their business by designing E-CRM applicationthat is easy and affordable. Thus the formulation of theproblem in this study is "How is the software development orElectronic Customer Relationship Management (E-CRM)application in Micro, Small and Medium Enterprises(MSMEs) in Banten province based on the characteristics ofthe Banten MSMEs using the waterfall method?". The resultsof the development of the E-CRM UMKM are expected tocontribute to development activities in terms of computationaltechniques. The purpose of this study was to implementtechnology, especially in the field of ICT to support economicimprovement in the Banten region of Indonesia. The featuresin this E-CRM will help MSMEs in implementing customerrelationship management so that they can increase theircompetitiveness with other companies in maintaining thebusiness they are running and as a means to obtain a widernew market. The development of the E-CRM UMKMapplication device is through the stages that exist in thewaterfall model software development method discovered byWinston W. Royce in 1970, namely planning, analysis,design, and implementation [8]. The results of the E-CRMUMKM application developed in this study are expected to beable to increase customer retention and build global scalemarketing in MSMEs in the Banten region of Indonesia.2. RESEARCH METHODThe following are the steps that have been carried out in theoverall research on the development of E-CRM UMKM inBanten province of Indonesia, namely: (1) Observation andData Collection of MSMEs in Banten Province, (2)Requirement Analysis of E-CRM UMKM in Banten , (3)Requirements for identification systems using the 6 ZachmanFramework perspective, namely scope, business model,system model, technology model, component, and workingsystem [14], (4) Produced 10 Characteristics of E-CRMModeling with Local Wisdom to MSMEs in Banten Province[1] [10], (5) E-CRM UMKM Modeling uses 4 ZachmanFramework matrices namely why, how, what, who, (6) CRMModeling with Unified Model Language (UML) Diagram AsEfforts to Increase Retention Customers of MSMEs in BantenProvince, (7) Software development based on 9 characteristicsof the E-CRM UMKM in Banten by using the WaterfallModel method through the stages: Planning, Analysis, Design,and Implementation, (8) So that E-CRM UMKM ApplicationAs Efforts to Increase Customer Retention of MSMEs inBanten Indonesia.3