Customer Conversion in Digital Broadband Services: The Roles of Personalization, Perceived Data Transparency, Customer Trust, Customer Engagement and Digital Literacy

Abstract

The rapid growth of digital marketing in Indonesia's telecommunications industry has created both opportunities and challenges for fixed broadband service providers. This study examines how personalization and perceived data transparency influence customer conversion through the mediating roles of customer trust and customer engagement, while also investigating the moderating effect of digital literacy. A quantitative survey approach was employed involving 400 active Indi Home Telkomsel customers distributed proportionally across five major regions in Indonesia. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results show that personalization positively and significantly influences customer trust (β = 0.389), customer engagement (β = 0.356), and customer conversion (β = 0.214). Perceived data transparency significantly affects customer trust (β = 0.419) and customer engagement (β = 0.505) but does not directly predict customer conversion. Both customer trust and customer engagement act as significant mediators, with customer engagement being the stronger predictor of conversion (β = 0.408). Digital literacy strengthens the relationship between personalization and customer conversion but does not moderate the effect of perceived data transparency on conversion. Fourteen hypotheses were tested, of which twelve were supported. These findings demonstrate that customer conversion in fixed broadband services is shaped not solely by data transparency but primarily by the quality of personalization, trust, engagement, and customers' capacity to interpret digital communications.