The Effect of Customer Relationship Management on Customer Loyalty: The Case of Selected Commercial Banks in Ethiopia
No Thumbnail Available
Date
2021-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The main purpose of the study was investigating the effect of customer relationship management on customer loyalty in the case of selected commercial banks in Ethiopia. To conduct this study, explanatory research method was employed which is appropriate to identify and evaluate the relationship between customer relationship management and customer loyalty. Both quantitative and qualitative research approaches were used. To collect data, the utilization of a questionnaire and interviews were made. Systematic random sampling was employed. Specifically, a random sampling technique was employed for those directly involved in the study and treated through questionnaire whereas purposing sampling techniques was employed for those involved in the interview sessions. The participants were purposely selected from 10 commercial branches. A total of 768 sample respondents were selected and involved in the study, of which 780 were completed and returned the questionnaire just in time while the remaining 12 (1,53%) of the respondents did not returned back the questionnaire for various reasons and mainly due to the fear to prevent Covid 19 (Corona virus). The collected data were analyzed by descriptive statistics such as frequency count, percentage; mean, standard deviation, ANOVA, correlation and regression coefficients respectively. Data were analyzed using the “Statistical Package for the Social Sciences” (SPSS) version 20 software was used. The results of the study show that, organization structure, communication, trust, customer focus, knowledge management and technology has a great effect on customer loyalty. From this, communication, trust and technology have relatively higher effect on customer loyalty. From the inferential analysis the magnitude of correlation between independent variables and the dependent variable for organization structure(R=.151**), technology(R=.770**) trust(R=.135**), Communication (R=.274**) customer focus(R=.284**) knowledge management(R=.414**).This shows that, all variables has positive correlation with customer loyalty but technology usage has a strong correlation with customer loyalty. The result of the study indicated that, the managers should work on their customer relationship management because the study revealed that CRM is a solution in banking sector and helps the bank managers and customers to better understand each other needs. On the basis of findings, the study recommends that, the bank managers should train their employees intensely on how to communicate with old customers in general and old customers in particular because the study revealed the existence of the gap in dealing with elder customers in administrating there account
Description
Keywords
Organizational Structure, Communication, Trust, Customer Focus, Knowledge Management,