Abstract :
As a new comer in banking industries, Islamic banking like conventional banking has
a crucial problem for maintaining customer loyalty, specifically for Small and Medium
Enterprises (SME) segment as potential customers. The purpose of this research is t o
examine the effect of Relational Benefits and Relationship Quality in credit delivering service
on Satisfaction and customer Loyalty of SME in Surabaya. Research involved 187 owners of
SME who have credit account in Islamic bank. By questionnaires and Structural Equation
Modeling (SEM) analysis, the results show that Relational Benefits have significant impact on
Customer Satisfaction Loyalty. Beside it, research also found that Customer Satisfaction has
a significant impact on Customer Loyalty. One of the findings which is different from
previously research is the insignificantly effect of Relational Benefits on customer Satisfaction
due to the homogeneity of relational benefits in this industry. The implication of the results is
bank should create specific benefits as differentiation strategy in credit delivering services
and maintain relationship quality consistently for creating customer satisfaction and loyalty.
Keywords : Relational Benefits, Relationship Quality, Satisfaction, Loyalty, Islamic bank