Impact of Customer Relationship Management (CRM) on Customer Loyalty the Case of Ethiopian Airlines

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Addis Ababa University


It can be witnessed from past few years’ media reports of airline performance that airlines are finding it difficult to remain profitable in the industry. Among many other factors, the major reason for the economic downturn in the industry is stiff completion due to the increase in oil price, political and economic instabilities in different parts of the world, and disease outbreaks. This situation requires airlines to come up with a marketing strategy that is customer focused and suitable to build long term relationship with their customers thereby improving the loyalty of their customers. This paper aims at looking at the impact of customer relationship management efforts on customer loyalty to see if efforts on building long turn relationship with customers impacts or contributes to customers’ loyalty. Descriptive study is conducted on Ethiopian airlines using a structured and detailed questionnaire distributed to the Airlines’ Loyalty program members. Results of the statistical analysis revealed that customer loyalty is indeed impacted by such factors of customer relationship management like Trust, Communication, Conflict Handling, and Competence. Though these factors impact loyalty at different degrees, it is recommended that improving the long term relationship with customer will positively impact customers’ loyalty.



Customer Relationship Management, Trust, Commitment