Assessment of Customer Relationship Management Practice in Banks (the case of Commercial Bank of Ethiopia)

Abstract

In today‘s competitive business environment, organizations are in a constant race to Increase profitability, retain current customers and gain new ones. Customer Relationship Management (CRM) is aimed at building a strong long-term relationship that keep Customers coming back repeatedly. The purpose of this thesis is to assess the level of CRM application in Commercial Bank of Ethiopia. The study adopted both quantitative and qualitative methods of research. The main objective of the study was to assess the practice of CRM in Commercial Bank of Ethiopians as measured by four behavioral dimension variables. These variables are key customer focus, knowledge management, technology based CRM and CRM organization. The study focused on employees of commercial bank of Ethiopia who are aware of Customer Relationship Management (CRM) practice being pursued by the bank as well as customers of the bank who are aware of the Customer Relationship Management (CRM) practice. .A sample size of three hundred ninety nine customers of Commercial Bank of Ethiopia in different branches and sixty three members of staff were drawn for the study. The researcher adopted the non- probability sampling procedure for both customers and employees. The data was primarily attained through the administration of questionnaires to customers and employees of the bank and Interview guides managers of staff. The collected data was analyzed using one sample statistics to indicate the mean and standard deviation for the responses given in five point Likert scale using SPSS version 20. The results of the study generally indicate that customers are enthused by some of the CRM practice being implemented by the bank. However, some of the practice are not implemented well and if it is properly done, it will improve the relationship the bank has with its customers. There is the need to evaluate and monitor the current strategies being implemented by the bank in order to reap its full benefits. It will also be necessary to involve customers when introducing these strategies so that the needed impact can be realized.