Effects of Customer Relationship Management on Customers Loyalty in Baking Industry of Ethiopia: The Case of Some Private Commercial Banks
No Thumbnail Available
Date
2016-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The banking sector is one of the dynamic businesses in which the effects of the customer relationship management shall be identified. In Ethiopia, There were 16 different private commercial banks. This study has the focus to show the roles of customer relationship management, in case of some private commercial banks found in Ethiopia. Since commercial banks are developing & increasing in their numbers here in Ethiopia the competition is going to be tough and it needs additional ways to attract new customers & also able to retain the existing customers too. This study investigated the impact of customer relationship management (CRM) on perceived bank performance. The objective of this study is to determine the relationship between the variables measuring customer relationship management (bonding, trust, commitment, communication and satisfaction) and bank performance. Primary data collected using questionnaire as research instrument was used. Based on the findings, it is recommended that there is a need for organizations especially banks to have a good relationship with their customers that can sustain competitive advantage. It is also recommended that organizations should take cognizant of their organizational structure to attract and retain qualified employees that can contribute positively. Since the country is having only the Ethiopian banking this made the competition not that much until today. But the situation happening encourage the banking sectors to develop new strategy like Customer relationship management.
Description
Keywords
Bank, Customers, relationship management