THE SYNERGY OF DIGITAL TRANSFORMATION AND GREEN BUSINESS STRATEGIES IN ENHANCING CUSTOMER ENGAGEMENT AND CUSTOMER RETENTION: AN INTEGRATIVE LITERATURE REVIEW

Abstract The rapid development of digital technologies and growing concerns about environmental sustainability have driven significant changes in business strategies, particularly among Micro, Small, and Medium Enterprises (MSMEs). This study aims to analyze the role of digital transformation and green business strategies in enhancing customer engagement and customer retention from a sustainable business perspective. This study employs a qualitative approach using a literature review method by analyzing various relevant sources concerning digital transformation, social media marketing, green business, customer engagement, and customer loyalty. The findings indicate that social media-based digital transformation plays an important role in strengthening interactions between MSMEs and customers through two-way communication, interactive content, and the creation of more personalized customer experiences. Furthermore, the implementation of green business strategies can create added value through environmentally friendly practices, the utilization of local resources, and the enhancement of business image. The integration of digital transformation and green business strategies has considerable potential to strengthen customer engagement, build customer trust, and improve customer retention in the long term. In the context of MSMEs in Jambi Province, the combination of digital and sustainability-oriented strategies represents a strategic opportunity to enhance the competitiveness of local products. This study recommends improving digital literacy, strengthening green business practices, and fostering multi-stakeholder collaboration to support the development of adaptive and sustainable MSMEs. Keywords: Digital Transformation, Green Business, Customer Engagement, Customer Retention, MSMEs, Sustainable Business.