Customer Relationship Management and its Effect on Loyalty (The Case of Dashen Bank)

Abstract

Globalization and technology improvements have exposed companies to a situation with tough competition; Banking is one of the service industries characterized by high customer contact with individually customized service solutions where customer satisfaction has been an increasing focus of research. So applying CRM is mandatory for the bank to have loyal customers. This research aimed to assess 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 DB 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 20. 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 Dashen Bank should give priority for the application of technology based CRM dimension than other dimensions because this dimension has high effect on customer loyalty. A conclusion was drawn to the effect that since factor influencing customer loyalty have been established, bank should give appropriate focus to significant dimensions of CRM.