Analysis of Key Factors for Improved Customer Experience, Engagement, and Loyalty in the E-Commerce Industry in Indonesia

. Analysis of Key Factors for Improved Customer Experience, Engagement, and Loyalty in the E-Commerce Industry in Indonesia. Aptisi


Introduction
In Indonesia's rapidly growing e-commerce market, customer experience, engagement, and loyalty have become crucial determinants of business success and sustainability. As competition intensifies, e-commerce companies strive to deliver attractive, efficient, and satisfying purchasing experiences to their customers. However, despite these efforts, there remains a gap in understanding the precise factors that significantly contribute to positive customer experiences, heightened engagement, and increased loyalty. While some aspects such as promotions, product quality, and customer support are recognized as essential, there is still room for a deeper exploration of factors that impact customer perceptions and engagement levels.
In the e-commerce industry, which is full of tough competition, retaining existing customers is very important. That is why e-commerce companies often adopt digital marketing strategies to increase customer loyalty. The selection of data sources from the five e-commerce companies with the most visitors in Indonesia can be seen in Figure 1. Although some factors such as promotions and discounts [1] [2], product quality [3], and customer support have been recognized as important in shaping positive customer experiences, there are still other aspects that may not be fully understood by e-commerce companies. Therefore, it is important to dig deeper and identify factors that have a significant influence on the perception and level of customer engagement [4]. In Figure 2, key factors, some of these strategies include attractive loyalty programs, personalized experiences for customers, marketing campaigns tailored to customer preferences, and actively interacting through social media. In this way, the company hopes to build strong relationships with customers and stay competitive in a competitive market.

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■ 197 Customer loyalty refers to the loyalty and attachment that customers have to a brand, product, or service. It reflects the extent to which customers are likely to choose and continue to interact with that company or brand rather than looking for alternatives in the market. Customer loyalty is the result of positive experiences, levels of satisfaction, trust, and relationships that exist between customers and companies [6]. There are several factors that affect customer loyalty, one of which is the level of customer satisfaction, which is important. If customers are satisfied with the product or service provided by the company, they will tend to shop or use the service again in the future. These aspects of satisfaction include product quality, appropriate prices, timely delivery, good customer service, and an overall pleasant experience [7].
In the densely competitive e-commerce landscape, the imperative to retain existing customers looms large. Companies must always be sensitive to market dynamics and strive to improve quality and innovation to remain competitive at the forefront [1]. While factors such as promotions and discounts, product quality, and customer support have been recognized as important in shaping a positive customer experience, there are other aspects that e-commerce companies may not fully understand. Therefore, it is important to dig deeper and identify factors that have a significant influence on customer perceptions and engagement levels [4]. Nevertheless, the intricacies of the industry warrant a deeper exploration into the intricate factors underpinning loyalty and engagement. Although certain dimensions contributing to favorable experiences have been identified, latent aspects that remain beyond immediate comprehension demand focused investigation. Consequently, uncovering a holistic grasp of the nuanced factors that fundamentally mold customer perceptions and elevate engagement levels becomes a pivotal challenge.
While prior studies acknowledge the importance of customer experience and engagement in influencing customer loyalty, a noticeable gap remains in understanding how these variables interact to shape the overall customer journey. This is akin to having puzzle pieces without knowing how they fit together. This gap becomes clearer as existing studies often break down these elements in isolation, much like examining puzzle pieces separately instead of appreciating the larger picture they create when put together. This results in uncharted terrain where the interaction and influence of experience and engagement on loyalty remain less understood and can be further maximized by understanding the key factors.
Our study aims to maximize insights by bridging the gap and shedding light on the intricate interplay between experience and engagement in shaping customer loyalty. We intend to explore not just the individual pieces but how they come together synergistically to reinforce loyalty. By filling this gap in understanding of these key factors, it is hoped that e-commerce companies will be able to design more effective and focused strategies to enhance positive customer experiences, optimize engagement, and strengthen customer loyalty. In addition, this research will also explore the possibility of new factors emerging as a result of technological developments and changes in consumer behavior in the digital era

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■ 198  [8].Moreover, we recognize the practical nature of this challenge for e-commerce companies seeking actionable strategies. Like a map guiding travelers, our research aims to offer practical insights that these companies can apply to enhance customer experience, refine engagement strategies, and foster enduring loyalty among their customer base. This study makes a valuable contribution to the literature by applying a qualitative approach that has rarely been used in previous studies. While most research emphasizes a quantitative approach, the qualitative approach in this study provides a more in-depth and contextual perspective on the factors that influence customer experience, engagement, and loyalty in the e-commerce industry. Through a focus on customer narratives and views, this research is able to explore new dimensions of this phenomenon and provide original insights. Merging customer expectation studies with traditional analysis also brings an innovative dimension to this research, enabling us to express customer expectations for an ideal experience on e-commerce platforms and measure the degree to which these expectations are met. These results identify areas that have not been covered before, opening up new opportunities for a deeper understanding of the factors that shape customer experience and loyalty. More than that, the practical contribution in this research through the exposure of concrete steps for the development of e-commerce shows that this research not only generates theoretical insights, but also provides guidance that can be implemented by companies. By embracing this practical aspect, this research adds value with the potential for a positive influence on customer experience and loyalty in the context of the e-commerce industry.

Limitation
This study has several limitations that need to be considered in the interpretation of the results and the generalization of the findings. First, this research focuses on the five largest e-commerce in Indonesia in terms of transactions, transaction value, and number of users. This may not cover the more specialized nuances of smaller e-commerce sites or those operating in different industries. Second, the method used in this study is an explanatory method with a qualitative approach. While this approach provides in-depth insights, the results may not be immediately applicable to the wider population. Third, in selecting respondents, this study is limited to platinum and diamond members, who have a high level of involvement. While this provides deep insight, it may overlook the views of other customer segments that also make important contributions to e-commerce.

Research Method
The method used in this study is a qualitative approach using explanatory case studies on the 5 most visited e-commerce companies in Indonesia. A qualitative approach is used to obtain in-depth primary data from informants, which is often not disclosed through a quantitative approach. In this study, the information to be obtained is customer experience related to the use of digital platforms as a means of purchasing products that is closely related to involvement and loyalty to the five e-commerce companies.
The data used is primary data from 11 selected respondents with platinum and diamond membership levels. Respondents are buyers who use digital platforms at e-commerce companies Shopee, Tokopedia, Lazada, Blibli, and Bukalapak. Selection of data sources from five e-commerce companies with the most visitors in Indonesia. The demographic profile of the respondents in this study includes a variety of factors that provide an understanding of the background and characteristics of the individuals involved in the research. Respondents involved in this research are active consumers of the e-commerce platforms studied

Research Method 2.1 Literature Review
According to Kotler & Armstrong [9], e-commerce refers to online channels accessible through computers, used by businesses to conduct commercial activities, and utilized by

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■ 199 consumers to search for information with the aid of computers. This process begins with providing information services to consumers to assist them in making decisions. On the other hand, e-commerce encompasses the buying and selling of goods and services as well as marketing through electronic systems, such as radio, television, computer networks, or the internet. Thus, it can be interpreted that e-commerce is a dynamic combination of technology, applications, and business processes that connect companies, consumers, and specific communities to exchange goods. These transactions are conducted electronically, and the delivery of goods from retailers to consumers utilizes various transportation methods from one region to another until they reach the hands of consumers. The relationships formed within e-commerce aim to be mutually beneficial for both parties. Customer experience, trust, and satisfaction have a positive and significant influence on repeat purchase intentions on online shopping sites [10].
The research findings conducted by [11], as well as [12] demonstrate that digital marketing strategies have a significant impact on enhancing customer loyalty in the e-commerce industry. This impact can be explained through the following reasons: 1. Wide Accessibility and Reach: Through digital marketing, companies can reach potential customers worldwide. The internet provides unlimited global access, allowing companies to reach a broader audience compared to traditional channels. This enables companies to establish relationships with new customers and expand their existing customer base.
2. Personalization and Customized Experience: Digital marketing allows companies to gather customer data to better understand their preferences, behaviors, and needs. With a deep understanding of customers, companies can deliver personalized messages and offer more tailored experiences. This creates an emotional bond between customers and the brand, increasing customer satisfaction and strengthening loyalty.
3. Active Interaction and Engagement: Through social media, blogs, or other digital platforms, companies can directly interact with customers. This active engagement enables companies to provide quick responses to customer inquiries or issues, offer support, and build close relationships. This ongoing interaction makes customers feel heard, valued, and connected to the brand, contributing to increased loyalty.
4. Digital Loyalty Programs: Digital marketing strategies can be supported by special loyalty programs for e-commerce customers. These programs provide incentives, rewards, and exclusive experiences to loyal customers. By engaging customers through loyalty programs, companies can encourage higher involvement, increase purchase frequency, and strengthen emotional bonds with customers.
5. By combining the above factors, digital marketing strategies offer opportunities for e-commerce companies to build stronger customer relationships, enhance satisfaction, and strengthen loyalty. Proper implementation of these strategies also provides greater opportunities for companies to retain and expand their market share in the e-commerce industry.
Digital marketing strategies play a crucial role in enhancing customer loyalty in the e-commerce industry. It is essential to leverage personalization, digital loyalty programs, active interactions through digital platforms, and intelligent use of customer data. In this way, companies can provide better experiences to customers, create emotional connections with the brand, and increase customer satisfaction. Companies should also continually keep up with technological advancements and consumer trends to adapt to changes effectively and maintain customer loyalty [7].
From the research results of [13], the following are the factors that influence customer loyalty:

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■ 200 The speed of service and attention from staff also serve as essential indicators in improving customer trust and loyalty. 5. Accuracy of Information: The availability of accurate and sufficient information at the terminal can enhance customer trust and loyalty. 6. Implementation of Service Standards: The implementation of good service standards can influence customer satisfaction and trust. 7. Customer Trust: The level of customer trust plays a vital role in increasing customer loyalty.
From the research results of [14], the following are the factors that influence customer loyalty: 1. Service Quality (SQ): Good service quality, including cheerfulness and delight in the purchasing process, can influence customer satisfaction and loyalty.

Research Gap and Novelty
Although studies identify the influence of customer experience and engagement on customer loyalty, a gap that can be explored is how these variables interact with each other and impact the overall customer experience. More in-depth research can examine how customer experience and engagement can work together to form stronger loyalty, particularly in a practical context that can be readily applied by e-commerce companies. This gap becomes even more apparent as various studies touch upon individual aspects of these elements, highlighting the need for an integration and comprehensive exploration of these factors. Existing research predominantly gravitates towards quantitative approaches, analyzing these factors in isolation, and often in a surface-level manner. This leaves uncharted terrain that could unveil the intricate dynamics of how these factors synergize and shape the overall customer journey. In this light, the aim of our research is to not only bridge this gap but also provide actionable insights that e-commerce companies can implement to enhance their customer experience, engagement strategies, and ultimately foster lasting loyalty.
The main uniqueness of this research lies in the chosen methodology approach. Unlike previous studies that mostly adopted quantitative approaches, this research embraces a qualitative approach. Through this approach, we endeavor to present a deeper and contextual understanding of the factors influencing customer experience, engagement, and

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■ 201 loyalty in the e-commerce industry. With a focus on customer narratives and viewpoints, our aim is to explore new dimensions of this phenomenon and provide unique insights.
In addressing the challenges of this study, we innovated the method of respondent selection by focusing on a segment of customers who significantly contribute to the e-commerce business. Diverging from the conventional approach of random sampling, we specifically selected platinum and diamond members as our primary respondents. This step is aimed at providing a more profound and meaningful perspective from customers who have demonstrated high engagement in their interactions with the e-commerce platform. Consequently, we anticipate that the obtained results will offer more relevant and in-depth insights into the factors influencing customer experience, engagement, and loyalty within the context of e-commerce.
Another contribution of this research is the implementation of the customer expectation study approach. Through this approach, our intention is to reveal customer perceptions of their expectations for an ideal transaction experience on the e-commerce platform. Additionally, we will assess the extent to which these expectations are met in the actual customer-platform interactions. This approach provides us with the opportunity to identify areas that may not have been covered in prior research, opening new avenues for a deeper understanding of the factors shaping customer experience and loyalty in the e-commerce industry.
Beyond offering a more profound theoretical perspective, this research also introduces a practical dimension by providing concrete steps for e-commerce development. By analyzing our findings, we aim to identify real opportunities for companies to enhance their performance in the e-commerce industry. This approach underscores that our research is not solely focused on conceptual understanding but also aims to contribute practically implementable solutions for companies. Through the presentation of practical steps that can be adopted, we hope this research will offer valuable guidance to companies in advancing their e-commerce platforms, resulting in a positive impact on customer experience and loyalty.
This research gains a heightened sense of urgency due to its focus on unearthing new dimensions in an ever-evolving industry. By employing a qualitative approach, this research offers a significant contribution by revealing more contextual and in-depth perspectives on this phenomenon. Furthermore, the practical contributions stemming from the implementation steps underscore the urgency of linking research to tangible actions in efforts to enhance customer experience and loyalty in the competitive landscape of e-commerce today. Thus, this research holds the potential to provide valuable guidance to companies in maintaining competitiveness and maximizing added value amidst ongoing changes.

Findings 3.1 Factors Influencing Customer Experience
This section discusses the significant factors that influence customers' experience while using the company's platform. Based on the interview analysis, several factors play a crucial role in shaping a positive customer experience. Promotion and Discounts: Free shipping promotions, discounts, and vouchers add value and make the shopping experience more economical and beneficial. This encourages customers to remain loyal to the platform as they perceive these promotions as advantageous.

Product Quality and Trust:
Respondents emphasized their loyalty to the platform because they have never experienced fraud, and the products provided have not been disappointing. Customer trust in product quality and platform reliability is vital in creating a positive experience. features also facilitate finding desired products, further strengthening the positive experience. 4. User-Friendly Interface: An attractive, easy-to-use, and user-friendly interface also contributes to the customer experience. Good visual experiences and ease of navigation make customers feel comfortable and motivated to continue using the platform. 5. Responsive Customer Support: The responsiveness of customer support is a crucial factor in building a positive customer experience. Prompt responses to inquiries or issues provide a sense of security and comfort during transactions. 6. Speed of Response: The speed of response from the platform or customer service team is also an attractive factor for customers. Quick responses provide trust and comfort in interacting with the platform. 7. Reseller Program: The existence of a reseller program is also appealing to some respondents. This program offers customers an opportunity to become resellers and gain additional benefits, creating a commitment as loyal customers. 8. Special Features: Features such as low-cost food features, vouchers, flash sales, and Reels Video features are also essential factors that influence customer experience. These features provide opportunities to obtain products at more affordable prices and present visually appealing products. 9. Assurance of Product Authenticity: Assurance of product authenticity through the Mall feature and flexible delivery options also provides confidence to customers. This factor gives a sense of security and comfort in the purchasing process, maintaining customer satisfaction. 10. Promo Free Shipping and Discounts: Free shipping promotions and discounts provide financial benefits and enhance the overall shopping experience. Customers consider this factor important in choosing and remaining loyal to the platform. 11. Loyalty Programs and Discounts: Loyalty programs and discounts are also attractive factors for customers. The additional benefits provided through these programs give added value and increase customer attachment to the platform 12. Product Reviews and Ratings: Product reviews and ratings are essential sources of information for customers. They rely on reviews and ratings from other customers to obtain reliable information before making purchases, making this factor significantly influential in the customer experience. 13. Paylater Feature: The Paylater feature provides attractive payment flexibility for customers. This feature allows customers to buy products without paying immediately, providing convenience in transactions.

Factors Influencing Engagement
The factors influencing engagement based on respondents' answers regarding how often they interact with the platform or its features and what motivates them to continue engaging are as follows (first question):

Availability of a Variety of Products:
The availability of various products on one platform is a motivating factor for respondents to continue engaging. The comprehensive range of products makes it easier for them to find and purchase goods without having to search elsewhere. 2. Competitive Prices and Attractive Discounts: Competitive prices and attractive discounts are drivers for respondents to engage regularly. They are interested in finding the best deals and saving money on their purchases. 3. Ease of Use: An easy-to-use and intuitive user interface provides comfort and convenience, making it easier for respondents to find products, compare prices, and complete purchases quickly and effortlessly. 4. Loyalty Programs: The presence of loyalty programs that offer points, cashback, or exclusive discounts to loyal customers is a motivating factor for respondents to

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■ 203 continue engaging. These programs provide additional incentives and enhance the sense of value and benefits for them. 5. Responsive Customer Support: A responsive customer support team ready to assist in addressing questions or issues that may arise is an essential factor. Quick responses and good support provide a sense of support and appreciation as customers. 6. Events and Flash Sales: The frequent occurrence of events and flash sales on the platform motivates respondents to engage almost every day. The opportunity to get discounted items or attractive offers prompts them to check the platform regularly.

Factors Influencing Customer Loyalty
Loyalty Programs: The company offers loyalty programs that provide special incentives and benefits to loyal customers. These programs may include points that can be redeemed for discounts, cashback, or additional shopping vouchers. Loyalty programs effectively encourage customers to remain loyal by offering additional financial benefits with each purchase.
1. Exclusive Offers: The company provides exclusive offers available only to loyal customers. These offers may include discounts, special promotions, personalized product recommendations based on customer preferences, or offers tailored to specific customer activities. Exclusive offers make customers feel valued and provide additional incentives to remain loyal. 2. Satisfaction and Trust: Customers feel satisfied with their shopping experiences at the company and have trust in the quality of products and services provided. This creates a sense of contentment and trust that builds loyalty towards the company. 3. User-Friendly Platform: Customers find the company's platform easy to use and suitable for their daily needs. The user-friendly interface provides comfort and makes them more likely to recommend the company to others. 4. Product Quality: Customers believe that the company provides high-quality products.
These products meet their expectations and provide satisfaction, thereby motivating them to recommend the company to others. 5. Reputation and Ratings: Customers have trust and satisfaction in the company due to its good reputation. They perceive the company as recognized and valued by other consumers, making them confident in recommending it to others. 6. Responsive Customer Support: Customers are satisfied with the responsive customer support provided by the company. When they have issues or complaints, the company responds quickly and handles the problems effectively. Responsive customer support enhances customer trust and satisfaction, making them more likely to recommend the company to others.

Customer Expectations
Based on customer responses regarding their expectations for future digital experiences, the following factors can be identified: Customer expectations for the company or brand when interacting through digital channels include attractive promotions and discounts, responsive and quick responses to messages, good customer service, and relevant answers to their inquiries. Features or services desired by customers through digital channels include direct chat with sellers, improved live chat features, personalized content and recommendations based on customer preferences, as well as special price promotions and experiences for first-time buyers.
The company or brand can enhance the customer experience through digital channels by providing an intuitive and user-friendly user interface, improving response speed and page loading time, providing relevant and easily accessible information, offering flexible shipping options and accurate order tracking, providing responsive customer support, ensuring customer data security, and introducing technological innovations that enhance customer interaction and comfort. Some customers feel that the company or brand already meets their expectations in terms of customer experience through digital channels. They are satisfied with the features and services provided, such as attractive promotions, affordability of products, good responsiveness from the company, and ease and security of online shopping.

Problem
The mismatch between existing factors and customer expectations can be observed from the following aspects:

• Customer Expectations Regarding Direct Chat with Sellers
In the findings regarding factors influencing customer experience, there was no mention of direct chat with sellers as a specific feature. However, in the customers' expectations for the future digital experience, they expressed a desire to have this feature. If this feature is not currently available on the e-commerce platform, it becomes a problem as customer expectations are not met.

• Personalization of Content and Recommendations Based on Customer Preferences:
Although the factors influencing customer experience mentioned the importance of an attractive and user-friendly interface, there was no specific emphasis on content personalization and recommendations based on customer preferences. However, customers stated their expectations for this feature in the future digital experience. If the company has not provided this personalization feature, customer expectations remain unmet.

• Ease and Security of Online Shopping
The factors influencing customer experience highlighted the ease of transactions and supportive features, as well as the assurance of product authenticity and flexible shipping options. However, customer expectations also include a desire to improve response times and page loading speed, as well as maintaining the security of customer data. If the company has not given special attention to these aspects, customer expectations regarding ease and security are not fully met.
• Responsiveness and Promptness in Replying to Messages: The factors influencing customer experience mentioned the importance of responsive customer support. However, customer expectations specifically emphasize responsiveness and promptness in replying to messages. If the company has not provided a very fast response to messages, customer expectations regarding this aspect remain unfulfilled.

• Personalization of Content and Recommendations:
The feature of personalizing content and recommendations based on customer preferences was not specifically mentioned in the factors influencing engagement. However, in customer expectations, this feature is one of the desired aspects to enhance the digital experience in the future. If the company has not provided this personalization feature, customer expectations for a more tailored experience to their preferences are not met.
The comparison between existing factors and customer expectations reveals several aspects that have not been fully met or accommodated by the e-commerce company. This indicates a gap between the current factors and customer expectations that needs to be addressed or improved to provide a more satisfying customer experience and meet customer expectations effectively.

Research Implementation
In an effort to enhance customer experience, the e-commerce company can implement several strategies to address the gaps found in this research. Here are some recommendations to consider:

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■ 205 • Implement Live Chat with Sellers: The e-commerce company can consider providing a live chat feature with sellers on their platform. This feature will allow customers to communicate directly with sellers to obtain more information about products, ask questions, and receive advice or recommendations before making a purchase. With this feature, customers will feel more connected to sellers, and their shopping experience will become more interactive and personalized. • Enhance Content Personalization and Recommendations: The company can implement a strategy of personalizing content and recommendations based on customer preferences. By leveraging technology and data analysis, the company can present more relevant and tailored content and recommendations to each customer's interests and needs. This personalization will increase customer engagement with the platform and strengthen loyalty. • Focus on Responsiveness and Page Loading Speed: The e-commerce company should ensure that its platform has high responsiveness in replying to customer messages and fast page loading times. A responsive and efficient user experience will enhance customer satisfaction and encourage them to remain active on the platform. • Prioritize Security in Online Shopping: Customer data security must be a top priority for the e-commerce company. Ensuring that the platform has robust security systems and providing assurances of secure transactions will instill confidence in customers and encourage them to make more purchases. • Improve Content Personalization and Recommendations in Engagement: Apart from the customer experience, the e-commerce company should also focus on content personalization and recommendations to enhance customer engagement. By providing relevant content and recommendations tailored to customers' interests and preferences, the company can increase customer attachment and interaction with the platform.
By addressing the existing gaps and implementing the above recommendations, the e-commerce company can enhance customer experience, increase engagement, and strengthen customer loyalty. This will provide a competitive advantage in the competitive market and ensure sustainable business growth.

Conclusion
This research has identified factors that influence customer experience in using an e-commerce company's platform, factors affecting engagement, and factors influencing customer loyalty. Significant factors in shaping a positive customer experience include promotions and discounts, product quality and trust, ease of transactions and supporting features, product variety, attractive and user-friendly user interface, responsive customer support, quick responses from the platform, the presence of reseller programs, as well as special features such as low-priced food options, vouchers, flash sales, and Reels Video features.
Furthermore, in the effort to enhance customer experience, the e-commerce company needs to pay attention to customer expectations related to features like live chat with sellers, content personalization, recommendations based on customer preferences, responsiveness, page loading speed, online shopping security, and quick response to customer messages. By addressing the gaps between existing factors and customer expectations, the company can improve customer satisfaction and strengthen loyalty. Therefore, the recommendations to address these gaps are to implement live chat with sellers, enhance content personalization and recommendations, focus on responsiveness and page loading speed, prioritize security in online shopping, and improve content personalization and recommendations in engagement. By adopting these strategies, the e-commerce company can provide a more satisfying customer experience, increase engagement, and strengthen loyalty, thereby gaining a competitive advantage in the market and driving sustainable business growth.

Further Recommendation
In order to further advance this research, several crucial recommendations can be proposed to pave the way for a deeper understanding of customer experience, engagement, and loyalty within the context of the e-commerce industry. Some of our recommendations include: collaborate in implementing smart tourism practices that align with local values, fostering not only economic growth but also cultural and environmental preservation. Balancing economic interests with sustainability concerns remains a challenge, necessitating thoughtful planning to avoid negative consequences. Ultimately, this study contributes to the burgeoning field of smart tourism by providing empirical evidence of its potential benefits and by offering practical guidance to creative economy stakeholders seeking to navigate this evolving landscape.