| Abstract: | The general objective of the study is to examine the effect of customer relationship management on customer retention by taking evidence from branches of CBE in North Addis Ababa district.. More specifically, the study tried to see the relationship of CRM with social network interaction, responsiveness, and Customer recognition & Primary data was obtained through structured questionnaire from customers selected branches in CBE NAAD. Data were collected through the five point’s Likert scales of questionnaires, and the study used quantitative and qualitative research approach. Simple random sampling technique was used to sample between CBE North Addis Ababa districts branches. The researcher proportionally distributed 322 questionnaires to customers of the selected branches and 298 of them were collected for further analysis. . In order to meet the research objective collected data analyzed through descriptive analysis techniques, correlation and regression analysis methods were used to analyze the collected data by using SPSS software version and Descriptive analysis tools such as frequency, mean and standard deviation to present results statistical analysis tools such as correlation coefficient was worked out and used to investigate the relationships between variables. Regression analysis was performed to study the effect of independent variables on customer retention. The study examined three independence variables, social network interaction, responsiveness, and customer recognition. The explanatory variables explain dependent variables accounted for 57.6%. Research findings indicates that there is a significant relation between CRM components on Customer Retention, and also to regression testing that all variables were examined at the same time on customer retention; results showed that all components have a significant effect on customer retention. The researcher recommends that CBE may apply more effort in its staffs to create motivation on them in order to serve customers in the best manner and It is critically important to take care of that customer by listening to the compliant and resolving the problem to ensure a sustainable banking relationship. |
