THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION: THE CASE OF LION INTERNATIONAL BANK S.C ADDISS ABABA

Abstract

The purpose of this paper is to investigate the effect of Customer Relationship Management on customer satisfaction the case of Lion International Bank S.C Addis Ababa. It followed a quantitative research approach and the research design was both descriptive and explanatory research. A structured questionnaire was adopted. A quantitative research approach was implemented, and the hypotheses was tested on a sample of 289 customers out of 300 distributed, giving a valid response rate of 96.3 percent. The questionnaire was analyzed using Statistical Package for Social Sciences (SPSS) V.25 to compute Cronbach Alpha, descriptive statistics, correlation & regression. Correlation analysis was conducted to analyze the relationships between variables; the correlation matrix revealed that all coefficient of correlation independent variables were positive and strongly correlates with the dependent variable. In addition to correlation analysis, Further regression analysis was also conducted and results revealed that the four independent variables (Reliability, Process-driven Approach, Customer Focus & Technology Orientation) contribute to statistically significant level at (p-value = 0.001). Based on hypothesis testing the p- value of Reliability, Process-driven Approach, Customer Focus & Technology Orientation is less than 0.05, thus the researcher can accept the hypothesis and all the Customer Relationship Management service dimensions. From the analysis, the researcher recommend LIB S.C. should give priority for the application of Technology Orientation CRM dimension than other dimensions because this dimension has highest effect on customer satisfaction. As evident from the finding section that, Lion International Bank S.C Addis Ababa is recommended to implement Customer Relationship Management dimensions effectively to attract customers that make purchase decision and to increase the sales volume.