The Application of Customer Relationship Management and its Effect on Loyalty The Case of Awash International Bank

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2014-06

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Abstract

CRM in banking industry entirely different from other sectors, because banking industry purely related to financial services, which needs to create the trust among the people. So applying CRM is mandatory for the bank to have loyal customers. This research aimed to assess the extent to which AIB applied CRM practices across four dimensions (Key customer focus, Knowledge Management, CRM Organization & Technology based CRM) and its effect on customer loyalty. The researcher collects data from AIB customers by distributing questionnaires which measured their agreement and disagreement on CRM activities of the bank and their level of loyalty to the bank by using five point Likert scale. For this research 385 questionnaires were distributed and 285 (74%) were returned back for analysis. The collected data was analyzed by using statistical package for social science (SPSS) version 16.0 software using graphs, tables and other descriptive statistics (mean ,standard deviation) and inferential statistics (correlation and regression)as appropriate. From the analysis the researcher recommend AIB should give priority for the application of technology based CRM dimension than other dimensions because this dimension has high effect on customer loyalty

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banking industry, financial services, loyal customers

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