THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON MARKETING PERFORMANCE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Customer relationship management plays a key role in the improvement of firms’ performance. The importance of Customer relationship management is growing due to the challenging business environment faced by organizations throughout the world today. The purpose of this study is to examine the impact of customer relationship management (key customer focus, customer knowledge management, technology based customer relationship management and organizing around customer relationship management) on marketing performance (customer loyalty, customer satisfaction, customers’ perception and service quality and market share) of commercial bank of Ethiopia. In this study both qualitative and quantitative approaches were employed. The study used primary and secondary sources to gather data. Primary data were collected through close ended questionnaire and semi-structured interview. The population of the study was employees (customer service officers, customer service managers and marketing managers) of the selected branches. The total sample size for the study was 246 among these 233 were customer service officers and managers and the rest 13 are marketing managers. These employees were selected because they are concerned about the customer relationship management practices and marketing performance of the bank. To analyze the collected data correlation, simple linear and multiple regression was used. The findings show that customer relationship management dimensions (key customer focus, customer knowledge management, technology based customer relationship management and organizing around customer relationship management) affects customer loyalty, customer satisfaction, customers’ perception and service quality and market share. Among the problems faced by the bank on implementation of CRM practices, lack of customer centric performance standards, lack of advanced technological facilities and lack of standardized physical facilities are the major ones. To increase employees’ performance, minimize customer waiting time and increase service Excellency, the bank should establishing customer centric performance standards at all customer touch points and use advanced banking technologies and facilities.