| Abstract: | Customer Relationship Management (CRM) is a mix of people, processes, and technology that seeks to understand customers of a company. It is an integrated approach to relationship management through the focus on customer retention and relationship development. The banking sector has become highly competitive in Ethiopia. By using Customer Relationship Management, the banks are making greater efforts to acquire and retain customers. CRM helps companies improve customer satisfaction as it helps to identify customers and prospects and then engage them. Despite banks introducing CRM initiatives to improve account holders' satisfaction, consumers remain unhappy with banking services. The aim of this study was to determine the effect of CRM on the satisfaction of account holders in Nib International Bank. The research employed mixed research approach to analyze the data. The target population was 27,692 account holders from selected Nib International Bank branches. A sample of 394 respondents was selected using Simple random sampling. Primary data was gathered using a closed-ended questionnaire guided by the researcher on a 5-point likert scale. The reliability of the research tool was determined by a pilot test that resulted in Cronbach Alpha coefficient > 0.7. Interview was used as a tool to gather qualitative data. Quantitative data was analyzed using both descriptive and regression analyses with the aid of SPSS and qualitative data was analyzed through content analysis. To describe the characteristics of the variables, descriptive statistics such as mean, frequency distribution, and standard deviation were used. To ensure multiple linear regression assumptions, diagnostic tests were performed for normality, linearity, multicolinearity and homoscedasticity of variance. The Result suggests that CRM has a significant and statistically relevant effect on satisfaction among Nib International Bank account holders’. Knowledge management was found to be the weakest in the bank. It is recommended that the bank carry on its CRM practice by continually enhancing its technology and relationship with its customers. |
