The effect of Customer Relationship Management Practices on Market Performance in Selected Commercial Banks: Branch Managers Perspective
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Date
2017-05-19
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Addis Ababa University
Abstract
Due to fierce competition in today’s business environment, many companies are required to
build long- term profitable relationship with customers and to achieve better market
performance. Therefore, Customer Relationship Management has become more and more
important since the last decade of 20th century, especially in the service industry. As a result,
this study is aimed to empirically investigate the influence of Customer Relationship
Management (customer identification, customer attraction, customer retention, key customer
focus, customer knowledge management, Customer Relationship Management organization and
technology based Customer Relationship Management) on market performance in banking
industry with reference to Commercial Bank of Ethiopia, Awash Bank and Oromia International
Bank . A theoretical framework was used as a guideline to test the influence of Customer
Relationship Management on market performance. A quantitative research approach was
implemented. Besides, a descriptive research design was used for this study. A questionnaire
derived from previous studies and the relevant literature is completed by 209 managers of the
selected commercial banks in Addis Ababa city. Correlation analysis assessed the relationship
between Customer Relationship Management and market performance and multiple regression
analysis assessed the influence of Customer Relationship Management on market performance.
The findings confirm that all the independent variables (customer identification, attraction,
retention, key customer focus, knowledge management, Customer Relationship Management
organization and technology based Customer Relationship Management) have a positive and
significant relationship with market performance in selected commercial banks. Moreover, the
study explore that there is a positive and significant influence of Customer Relationship
Management on market performance. Therefore, the selected banks have to implement Customer
Relationship Management appropriately and continuously, as an indispensable tool for gaining
competitive advantage and building long – lasting and profitable relationships with its customers
in order to achieve their market performance.
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Keywords
Customer Relationship Management, Customer identification, attraction