Factors Affecting Adoption Of Customer Relationship Management In The Banking Industry: The Case Of Dashen Bank S.C.(In Addis Ababa City)

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Addis Ababa University


Establishing strong relationships with customers is the most important success code of any business. Organizations have understood that customers are their most important assets and view customer relations (CR) as profitable transactions and also as opportunities requiring management. CRM is a business strategy which attracts, retains and elevates the customers. Proper implementation of this strategy will enable the organizations to perform the said three tasks with lower costs. The purpose of this study is to identify factors which affect adoption of customer relationship management in the banking industry. In order to obtain adequate information from employees, quantitative research approach is used. Regarding to the sampling technique, researcher used cluster sampling technique in order to select the geographic area of the study. In addition, purposive sampling technique is used for selection of employees (only Branch Managers, senior customer relationship managers, customer relationship managers, and customer relationship officers are included in the study). Accordingly, the researcher has selected 117 respondents from the four districts (which include branches and district offices), the corporate office, premium branch and one special branch of Dashen Bank in Addis Ababa and 117 questionnaires were distributed and out of it 103 questioners were filled and returned. The study used descriptive and inferential statistics technique to analyze the data and arrive at its findings. And to assist the computation; statistical package for social science (SPSS) soft ware version 20.0 was used. The outcome of descriptive statics shows that technology, investment and data quality affect the Bank’s CRM adoption Process. In addition, the correlation analysis showed that there is a positive relationship between the dependent variable (customer relationship management) and the independent variables (knowledge of CRM, technology, data quality and quantity, investment and top management commitment and involvement). In hypotheses test section, all formulated hypothesis to analyze factors affecting adoption of Customer relationship was accepted and which shows that knowledge of CRM, technology, data quality and quantity, investment and top management commitment and involvement influence adoption of CRM in the banking industry.



CRM, Knowledge of CRM, Technology