ASSESSMENT OF CUSTOMER REATIONSHIP MANAGEMENT PRACTICE: THE CASE OF DASHEN BANK S.C IN ADDIS ABAB CITY

Abstract

This research has been studied customer relationship management practices in Dashen bank in Addis Ababa, Ethiopia. Customer relationship management as a strategy has gained tremendous interest among researchers and practitioners in recent times. Thus, the study tries to assess the status and ways CRM has been put in to practice by Dashen bank. The researcher primarily focused to assess the current practice of customer relationship management in Dashen bank. The current practices of customer relation management (CRM) focus on five important dimensions to assess the current practice such as knowledge of CRM, Technology, data quality and quantity, investment and involvement of top management. To achieve the objective of the study, primary data were collected through questionnaire from, employees and from the interview which formulated to the top management of Dashen bank, Addis Ababa, Ethiopia. These respondents selected by using stratified random sampling techniques and drawn the respondent by using simple random sampling method. The data collected through questionnaire were analyzed using descriptive statistical analysis method and SPSS as a tool of data analysis. In addition to the above findings, the common challenge of bank was network interruption and system development. The finding also suggests some measures which can be taken in to consideration in order to enhance CRM practices of Dashen banks. The study also clearly revealed that the five CRM dimensions are strongly related. Thus, from customers as well as management bodies, CRM has a significant influence on customer retention of the Dashen banks. Generally speaking Dashen bank is in need of doing a lot of CRM based customer focused practices. However, in implementing CRM in to practice, the Dashen banks had their own gaps. Based on the findings of the study, the researcher forwards some recommendations as; continuous supervision on the quality of services, provision of training to employees, and recurrent research on customer needs may help the banks to achieve their objectives.