Assessment of Customer Relationship Management Practices: The case of Commercial Bank of Ethiopia

Abstract

The aim of this paper is to assess Customer Relationship Management practice on Commercial Bank of Ethiopia in Addis Ababa, Ethiopia. The study used both quantitative and qualitative research approach and it employed descriptive research design to see CRM practice of the bank. Thus, the study tries to assess the status and ways CRM has been put in to practice by CBE by look over five CRM dimensions those are service quality, interaction management, employee behavior, relationship development and physical environment. To achieve the objective of this study, primary data were collected by using 5-point Likert-scale questionnaire distributed to business credit customers and semi structured interview conducted with customer relationship managers and customer relation officers of Commercial Bank of Ethiopia. 281 questionnaires returned. These respondents were selected using Non-probability sampling method; specifically convenience sampling technique was used. Frequency, Mean, and standard deviation used to analyze data and to aid computation statistical package for social science (SPSS) software version 20.0 used. The findings of the study showed that, average mean score of each dimension categorized under well and moderate practiced of customer relationship management by the bank, therefore, the bank-practiced customer relationship management more or less well. More over The result of this study indicated, network interruption, lack of resource (like FCY, and credit) is common challenges for the bank are Some of the finding that get from the research so, based on the findings of the study, the researcher forwards some recommendations to the bank..