Revitalizing Customer Experience through the Internet of Things : Integrating Customer Engagement and Campaign Effectiveness

: This research study employs a quantitative approach to investigate the relationships among customer engagement (CEG), campaign effectiveness (CEF), IoT adoption, and their combined impact on customer experience (CEX) in the context of Bali's tourism industry. A random sample of 100 participants was selected from the target population, and structured surveys with Likert scale responses were used to collect data. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) was employed for data analysis, as it is well-suited for examining complex relationships among multiple variables. The study reveals significant direct relationships: CEG positively influences CEX, CEF positively influences CEX, and IoT adoption positively influences CEX. Additionally, there is a positive but relatively weaker relationship between CEG and IoT adoption and between CEF and IoT adoption. Indirect effects analysis shows that both CEG and CEF indirectly influence CEX through their impact on IoT adoption, although the latter relationship is relatively weaker. These findings have significant implications for Bali's tourism industry. Fostering customer engagement, effective marketing campaigns, and IoT adoption can enhance customer experiences, thereby increasing tourists' intention to revisit. This, in turn, can boost Bali's tourism sector, leading to economic growth and sustainability.


Introduction
Satisfying customer experience is a crucial aspect of tourism industry (Rather, 2020).Bali, as one of the world's most popular destinations, attracts thousands of tourists every year.For modern travelers, an unforgettable experience goes beyond just beautiful beaches and scenic views.They seek deep interactions with the local culture, ease in their travels, and friendly services.In this context, an exceptional customer experience is the key to keeping Bali attractive.A positive experience not only creates unforgettable memories for tourists but also impacts the local economy, Bali's reputation as a tourist destination, and sustainable return visits.By focusing on customer experience, Bali can maintain its status as a premier tourist destination that continues to be sought after by travelers from around the world.
Customer experience refers to the overall perception and satisfaction that a customer derives from their interactions with a brand, product, or service throughout their entire journey (Holmlund et al., 2020).It encompasses every touchpoint a customer has with a business, from initial awareness and research to purchase, usage, and post-purchase support.The theory behind customer experience emphasizes the importance of understanding and meeting customer expectations, needs, and desires at every stage of their interaction with the brand.A key concept in customer experience theory is that it goes beyond customer service.It encompasses the emotional and psychological responses that customers have during their interactions, influencing their loyalty, advocacy, and willingness to return.Positive customer experiences foster customer loyalty, word-of-mouth referrals, and long-term relationships.The theoretical framework of customer experience involves mapping customer journeys, identifying pain points and opportunities for improvement, and designing strategies to enhance every interaction.It acknowledges that customers are not just passive consumers but active participants in shaping their experiences (Becker & Jaakkola, 2020).Ultimately, the goal of focusing on customer experience theory is to create memorable, differentiated, and value-driven interactions that lead to sustained customer loyalty and business success.To elucidate this phenomenon, we will base our description of customer experience in Bali tourism on the outcomes of the initial pre-survey conducted with the inclusion of 100 tourists, as outlined below: Bali is renowned for its stunning natural landscapes, including pristine beaches, lush rice terraces, and active volcanoes.The breathtaking beauty of these environments creates a lasting impression and contributes significantly to visitors' experiences.
Maintain a high rating of 9/10 in tourist surveys for natural beauty appreciation.
Currently holding an 8.5/10 rating in recent tourist surveys for natural beauty.

Hospitality and Service
Balinese people are known for their warm and welcoming hospitality.Visitors often receive exceptional service at hotels, restaurants, and attractions.This level of care and attentiveness enhances the overall customer experience.

Safety and Security
Bali prioritizes the safety of tourists, with dedicated tourist police and emergency services.This contributes to a sense of security and comfort, positively influencing the overall experience.
Maintain a safety rating of 9/10 in tourist safety perception surveys.
Currently maintaining a safety rating of 8/10 in tourist safety perception surveys.

Source : Preliminary pre-survey
The table provides a comprehensive overview of various aspects of customer experience within Bali's tourism industry.It highlights key elements that contribute to the overall satisfaction and perception of tourists visiting this popular destination.These aspects range from cultural immersion and the appreciation of Bali's natural beauty to the quality of hospitality and services, adventure opportunities, culinary experiences, sustainability efforts, digital connectivity, shopping options, and safety and security measures.In terms of targets and achievements, it's clear that Bali has made notable progress in some areas while facing challenges in others.For instance, there has been a successful increase in cultural activity participation, but it fell short of the annual target.Similarly, while Bali excels in natural beauty, maintaining the highest rating proved challenging due to fluctuations in environmental conditions.Hospitality and service satisfaction, despite being high, haven't met the ambitious target.On the other hand, digital connectivity and safety ratings remain quite favorable.
One of the factors that influence customer experience is customer engagement.Customer engagement refers to the level of interaction, involvement, and emotional connection that a customer has with a brand, product, or service (Rather et al., 2022).It goes beyond mere transactions and signifies the depth of the relationship between the customer and the business.Customer engagement encompasses various dimensions, including communication, participation, loyalty, and advocacy (Wibowo et al., 2021).The impact of customer engagement on the customer experience is profound.Engaged customers are more likely to have positive experiences for several reasons.Firstly, engaged customers are more willing to provide feedback, which can be invaluable for a business to improve its products or services.They are also more likely to feel a sense of ownership and involvement in the brand, which leads to increased loyalty and repeat purchases.Moreover, engaged customers often become brand advocates, promoting the business to their social circles, which can result in new customer acquisition (Becker & Jaakkola, 2020).On the flip side, low customer engagement can lead to a lack of interest or connection with the brand, resulting in a less satisfying customer experience.Customers who are not engaged may be more prone to switching to competitors and are less likely to provide feedback, making it challenging for the business to address issues or make improvements.
In addition to customer engagement, another critical factor in building a positive customer experience is the effectiveness of marketing campaigns.These campaigns play a crucial role in shaping how customers perceive a brand, product, or service.Campaigns are designed to create awareness, convey brand values, and influence customer behavior (Gilboa et al., 2019).When executed effectively, marketing campaigns can have a profound impact on the overall customer experience.Effective marketing campaigns can enhance customer experience in several ways (Hoyer et al., 2020).Firstly, they can create a sense of anticipation and excitement among customers, encouraging them to explore a product or service with a positive mindset.A well-crafted campaign can effectively communicate the unique value propositions and benefits of what is being offered, which can lead to higher customer satisfaction.Moreover, campaigns can personalize and tailor messages to specific customer segments, making customers feel understood and valued.This personalization can result in a more relevant and enjoyable experience for the customer, which can strengthen their connection to the brand.Furthermore, successful marketing campaigns often include calls to action that drive customer engagement, such as signing up for newsletters, participating in contests, or making purchases (Chylinski et al., 2020).These actions can deepen the customer's involvement with the brand and increase their overall satisfaction (Delgosha et al., 2022).However, it's important to note that the effectiveness of marketing campaigns can also work in the opposite direction.Poorly executed campaigns, irrelevant messages, or overly aggressive tactics can have a negative impact on the customer experience, leading to annoyance or even alienation.
In the current era, where the Internet of Things (IoT) is at the forefront of technological advancements, it has emerged as a key driver in shaping and enhancing the customer experience.IoT refers to the interconnectedness of everyday objects and devices through the internet, allowing them to collect and exchange data seamlessly (Fagerstrøm et al., 2020).This interconnected network of smart devices and sensors is transforming the way businesses engage with customers.IoT's impact on customer experience is profound.Firstly, IoT enables businesses to gather real-time data on customer behavior and preferences, which can be used to personalize products and services (Pappas et al., 2021).For example, smart home devices can learn user habits and adjust settings accordingly, creating a tailored and convenient experience.Secondly, IoT enhances convenience and efficiency.Customers can control various aspects of their environment, such as lighting, temperature, and security, through their smartphones or voice commands.This level of control not only improves customer satisfaction but also provides a sense of empowerment.Moreover, IoT enables proactive customer service.Businesses can use sensors to detect potential issues with products and provide timely maintenance or replacements, often before customers even notice a problem.This not only ensures customer satisfaction but also builds trust and loyalty.Furthermore, IoT plays a pivotal role in the retail sector, where it's used for inventory management, personalized recommendations, and seamless checkout experiences.Smart beacons and RFID technology can track product movements, making shopping more convenient and efficient (Roy et al., 2022).
The purpose of this study is to explore the interplay among customer engagement (CEG), campaign effectiveness (CEF), and the adoption of Internet of Things (IoY) in the context of enhancing and understanding their combined impact on customer experience (CEX).This research aims to investigate how these variables collectively contribute to shaping the quality of customer interactions and overall satisfaction.Specifically, it seeks to elucidate how customer engagement and campaign effectiveness, in conjunction with IoT integration, influence and optimize the customer experience.By examining the complex relationships between these factors, the study intends to offer valuable insights for businesses aiming to leverage IoT and customer engagement strategies to improve campaign outcomes and enhance the overall customer journey.The following is the research framework in this study:

Research Methods
The methodology employed in this research study utilizes a quantitative approach to investigate the intricate relationships among customer engagement (CEG), campaign effectiveness (CEF), IoT (IoT) as intervention variable, and their combined impact on customer experience (CEX).A random sampling method will be employed to select a sample size of 100 participants from the target population.The choice to utilize a sample size of 100 individuals in this research study is based on several factors.Firstly, it offers a level of CEG CEF IoT CEX statistical significance that is generally adequate for deriving meaningful conclusions.When the sample is chosen randomly and accurately mirrors the characteristics of the target population, the findings from this sample can reasonably be extrapolated to describe trends and attributes of the broader population with a reasonable level of confidence.Furthermore, practicality and limitations in resources are influential in making this decision.In addition, 100 potential tourists were selected who had visited Bali several times in order to reflect the right results.
Data collection will involve the distribution of structured surveys and questionnaires, which will incorporate scales to gauge the variables of interest.Respondents will be asked to rate their responses on a Likert scale, allowing for the quantitative assessment of their perspectives.The collected data will be subjected to analysis using Structural Equation Modeling (SEM) with Partial Least Squares (PLS).SEM-PLS is particularly well-suited for examining intricate relationships among multiple variables (Hair et al., 2019).The analysis will encompass several stages, beginning with an evaluation of the measurement model to assess the reliability and validity of the constructs.Subsequently, the structural model will be scrutinized to ascertain the strength and significance of the connections between customer engagement, campaign effectiveness, IoT adoption, and customer experience.Bootstrap resampling will be applied to verify the significance of path coefficients, while goodness-offit indices will gauge the model's fit to the data.Hypothesis testing will be conducted to assess the statistical significance of the proposed relationships.

Result and Discussion
Following are the bootstrapping results on SEM-PLS 4 which are explained in the table 2: The path coefficient of 0.632 between CEG and CEX is statistically significant (pvalue = 0.000), signifying a robust positive relationship between these two variables.This suggests that as customer engagement increases, customer experience tends to improve.In the context of Bali tourism, this finding carries substantial implications for tourists' intention to revisit the island.When tourists have highly engaging experiences during their initial visit, such as interacting with the local culture, enjoying personalized services, or feeling a strong connection to the destination, they are more likely to develop a favorable perception of Bali.This, in turn, increases their intention to revisit in the future.Positive customer experiences leave a lasting impression and often lead to a desire to relive those moments (Tom Dieck & Han, 2022).In Bali's case, where tourism is a significant economic driver, fostering a sense of engagement and providing memorable experiences can translate into repeat visits.Tourists who feel deeply engaged during their stay are more inclined to plan return trips, recommend Bali to friends and family, and become loyal advocates of the destination.Furthermore, increased tourist revisit intentions have the potential to boost Bali's tourism industry.Repeat visitors tend to spend more, explore additional attractions, and stay longer, contributing positively to the local economy (Jessen et al., 2020).Therefore, prioritizing customer engagement strategies to enhance the overall customer experience can have a direct and favorable impact on tourists' intention to revisit Bali, thereby sustaining and growing the tourism sector in the region.
The path coefficient of 0.421 between CEF and CEX is notably significant (p-value = 0.004), indicating a meaningful positive relationship between these two variables.This finding implies that when campaigns are effective in conveying their messages and resonating with customers, it tends to lead to enhanced customer experiences.In the context of Bali's tourism industry, this has particular relevance for tourists' intention to revisit the island.When campaigns are well-executed, they can create a sense of anticipation and excitement among potential visitors (Högberg et al., 2019).Effective campaigns can effectively communicate the unique attractions, experiences, and cultural richness that Bali has to offer.When tourists' actual experiences align with the promises made in these campaigns, it fosters positive perceptions of the destination.Positive customer experiences during the first visit significantly influence the intention to revisit.Tourists who have had fulfilling and enjoyable experiences in Bali, thanks to effective campaigns, are more inclined to consider returning to the island.They may want to explore more of what Bali has to offer, uncover hidden gems, or simply relive the satisfying moments they had during their initial visit.The impact of campaign effectiveness on tourists' intention to revisit Bali extends to its economic implications (Nord et al., 2019).More return visitors mean increased tourism revenue for the island.These tourists are likely to spend more on accommodations, dining, activities, and souvenirs, which, in turn, bolsters the local economy and supports jobs in the tourism sector.
The path coefficient of 0.308 between IoT adoption and CEX is statistically significant (p-value = 0.001), indicating a meaningful positive relationship between these two variables.This finding implies that as the adoption of IoT technology increases, it tends to have a positive impact on the overall customer experience.In the context of Bali's tourism industry, the integration of IoT technology can have noteworthy implications for tourists' intention to revisit the island.IoT technology, encompassing smart devices and sensors, can enhance various aspects of the tourist experience (Prentice et al., 2019).For example, it can facilitate seamless and personalized services, allowing tourists to control aspects of their environment, such as room temperature or lighting, via their smartphones.This level of convenience and customization can contribute significantly to a positive and memorable experience during the initial visit.Tourists who have experienced the benefits of IoT technology during their stay in Bali are more likely to view the destination as forwardthinking and technologically advanced.This, in turn, can positively influence their intention to revisit.They may anticipate returning to Bali to explore even more IoT-enabled services and innovations, enhancing their overall experience.Furthermore, IoT technology can contribute to the safety and security of tourists, an essential factor for any destination.Smart surveillance, emergency response systems, and real-time monitoring can create a safer environment for visitors, which, in turn, can instill confidence and increase the likelihood of revisiting (De Souza et al., 2020).The impact of IoT adoption on tourists' intention to revisit Bali extends to its economic consequences.Satisfied and confident tourists are more likely to become repeat visitors, leading to increased tourism revenue and a more sustainable tourism industry for Bali.
The path coefficient of 0.100 between CEG and IoT adoption is statistically significant (p-value = 0.010), indicating a positive relationship between these two variables.However, it's important to note that this relationship is relatively weaker compared to some of the previous paths we've discussed.In the context of Bali's tourism industry, this finding suggests that there is a modest association between the level of customer engagement and the adoption of IoT technology.Customer engagement typically refers to the extent to which tourists actively interact with the destination and its offerings (Briedis et al., 2020).It includes activities such as participating in cultural events, exploring local attractions, and providing feedback.While there is a connection between these engaged behaviors and the adoption of IoT, it may not be as strong as other factors.The impact of customer engagement on IoT adoption, though relatively weaker, still contributes to the overall tourist experience.Engaged tourists who actively explore Bali and its culture may be more likely to embrace and appreciate the convenience and enhancements offered by IoT technology.This can include using smartphone apps for navigation, accessing personalized recommendations, or enjoying smart amenities in accommodations (Bhargava et al., 2022).Regarding its impact on tourists' intention to revisit Bali, this relationship may have a more indirect influence.While customer engagement may not directly drive IoT adoption, it can still contribute to a positive overall experience during the initial visit.This positive experience, in turn, can increase the likelihood of returning to Bali in the future.Additionally, the adoption of IoT technology, while influenced by various factors including customer engagement, can enhance the perception of Bali as a technologically advanced and innovative destination.This positive image can also play a role in tourists' intention to revisit (Sutrisno, 2023).
The path coefficient of 0.195 between CEF and IoT is statistically significant (p-value = 0.001), signifying a positive relationship between these two variables.In the context of Bali's tourism industry, this finding suggests that when marketing campaigns are effective in conveying their messages and resonating with tourists, it tends to have a positive impact on the adoption of IoT technology during their visit.Effective campaigns can create anticipation and excitement among potential tourists, encouraging them to explore the destination with enthusiasm.The integration of IoT technology can enhance the overall tourist experience in Bali.Smart devices and sensors can offer personalized services, such as tailored recommendations based on individual preferences, and enable greater convenience, such as controlling room settings through smartphones (Car et al., 2019).When tourists have these IoT-enhanced experiences during their initial visit, it not only contributes to a positive perception of the destination but also increases the likelihood of returning.The impact of campaign effectiveness on IoT adoption can thus influence tourists' intention to revisit Bali.Tourists who have previously encountered the benefits of IoT technology during their stay are more likely to anticipate a return visit to Bali, expecting to enjoy even more IoT-enabled services and innovations.This desire to explore more of what the destination has to offer can drive the intention to revisit.Furthermore, the perception of Bali as a destination that embraces technological advancements, reflected through the adoption of IoT, can positively influence tourists' decisions to return.It can convey an image of Bali as a forward-thinking and innovative destination, which may be particularly appealing to tech-savvy tourists (Zaid & Patwayati, 2021).
The next hyphotesis testing is indirect testing of IoT as an intervention variable, which can be seen in table 3: The path coefficient of 0.130 indicates a significant relationship between CEG, IoT adoption, and CEX.This path suggests that customer engagement can indirectly influence customer experience through its impact on IoT adoption.The p-value of 0.002 indicates that this relationship is statistically significant.In the context of Bali's tourism industry, this finding implies that the level of customer engagement can indirectly affect the quality of the tourist experience through the adoption of IoT technology.When tourists are actively engaged during their visit-participating in local activities, exploring cultural attractions, and immersing themselves in the destination-it can increase their receptiveness to IoT-enabled services and amenities.IoT adoption can enhance the overall tourist experience in Bali by providing personalized and convenient services.For example, tourists can use smartphone apps for navigation, receive tailored recommendations for activities and dining, and enjoy smart amenities in their accommodations (Becker & Jaakkola, 2020).These IoT-enhanced experiences contribute to a positive overall perception of Bali as a destination.The impact of customer engagement on IoT adoption, and subsequently on customer experience, can influence tourists' intention to revisit Bali.Engaged tourists who actively explore the destination may be more inclined to embrace and appreciate the benefits of IoT technology, which can lead to a more enjoyable and memorable experience during their initial visit.This, in turn, increases the likelihood of these tourists considering a return visit to Bali.Furthermore, the integration of IoT technology can position Bali as an innovative and technologically advanced destination.This image can be appealing to tourists, particularly those who value modern amenities and conveniences (Delgosha et al., 2022).
The path coefficient of 0.060 reveals a relationship between CEF, IoT adoption, and CEX.While statistically significant (p-value = 0.050), it's important to note that this relationship is relatively weaker compared to some other paths we've discussed.In the context of Bali's tourism industry, this finding suggests that the effectiveness of marketing campaigns can have an indirect influence on the quality of the tourist experience through its impact on IoT adoption.Effective campaigns can create anticipation and excitement among potential tourists, encouraging them to embrace IoT technology during their visit (Fagerstrøm et al., 2020).IoT adoption can enhance the overall tourist experience in Bali by providing personalized and convenient services, such as tailored recommendations and smart amenities.
When tourists have these IoT-enhanced experiences during their initial visit, it contributes to a positive overall perception of the destination (Högberg et al., 2019).The impact of campaign effectiveness on IoT adoption, and subsequently on customer experience, can influence tourists' intention to revisit Bali, albeit relatively indirectly (Rather et al., 2022).Tourists who have previously encountered the benefits of IoT technology during their stay may be more inclined to consider returning to Bali, anticipating even more IoT-enabled services and innovations during their next visit.While the relationship between CEF, IoT, and CEX is statistically significant, its relative strength suggests that other factors may also play crucial roles in shaping the tourist experience and intention to revisit Bali.However, it's important to note that even a relatively weaker relationship can still contribute positively to the overall experience and the desire to return.

Conclusion and Recommendation
In conclusion, our analysis of the relationships between customer engagement (CEG), campaign effectiveness (CEF), Internet of Things (IoT) adoption, and customer experience (CEX) in the context of Bali's tourism industry has unveiled important insights.The findings reveal that customer engagement and campaign effectiveness play substantial roles in influencing customer experience.Moreover, the integration of IoT technology has a significant and positive impact on enhancing the overall tourist experience.These factors collectively contribute to tourists' intentions to revisit Bali.
Based on our findings, several recommendations can be made to further improve the tourism industry in Bali.First, there is a clear need to prioritize and invest in customer engagement strategies.Encouraging tourists to actively participate in local activities, explore cultural attractions, and immerse themselves in the destination's unique offerings can foster positive experiences.Second, enhancing campaign effectiveness by effectively communicating the destination's attractions and experiences can attract more tourists and set appropriate expectations.Lastly, embracing and further expanding the adoption of IoT technology can provide tourists with personalized and convenient services, thereby elevating their overall experience.
This study has shed light on critical relationships within Bali's tourism industry, but further research can delve deeper into various aspects.Future studies can explore the impact of specific customer engagement initiatives and campaign strategies on tourist behavior.Additionally, the role of emerging technologies, such as augmented reality and artificial intelligence, in shaping the tourist experience can be investigated.Understanding how these factors evolve and interact will continue to be valuable in sustaining and enhancing Bali's tourism industry in an ever-changing global landscape.

Table 1 .
Aspect of Customer Experience in Bali Tourism

Table 2 .
Direct Effects Result

Table 3 .
Indirect Effects Result