ASSESSMENT OF CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The bank sector plays a vital role in underpinning the economic development of a country. CRM as a strategy has gained tremendous interest among researchers and practitioners in recent times. Therefore this study assessed customer relationship management (CRM) practices in Commercial Bank Ethiopia. It focuses on the relative importance of CRM factors and their impacts on the overall CRM practices. For this the research considered different CRM dimensions such as trust, reciprocity, empathy, bonding, responsiveness and key customer focus. To achieve the objective of the study, descriptive research design was used and Primary data were collected through questionnaire and interview. The respondents were selected using convenient technique. The data collected through questionnaire were analyzed using descriptive statistics as a tool of data analysis process in SPSS version 20.Interview conducted with management body of the selected head office bank, in Addis Ababa city. The result showed that, lack of quality bank services, weakness in giving individualized attention to Customers, lack of giving attention for suggestion boxes which is given by the key customers, lack of delivering superior and customized value add service, lack of skill used in technological advancement has significant in thence on CRM practice. Based on this Majority of the customers of the respondent didn’t give high score of mean and standard deviation. This implies that most of the customers of CBE those are participating in the products of credit facility areas are not satisfied by the type of work. The study also clearly discovered that the six CRM dimensions are strongly related. CRM has a significant Influence on customer retention. Generally speaking, the bank is in need of doing a lot of CRM based key customer focused practices. Furthermore, if the bank prepare new CRM program with their CRM improvement, it will maintain high level of performance.