The Impact of Customer Relationship Management (CRM) On Brand Loyalty (The case of Nyala Insurance Company S.C)

Abstract

In today’s highly competitive market structure, winning customers' mind demand to think beyond the current sales volume horizon, and companies deliver superior value to their target customers and provide more satisfaction than its competitors. Because of immense competition in today’s business market, organizations are struggling to apply different marketing strategies and programs to gain more market share and acquire more customers on one hand. The main objective of the study is to examine the impact of Customer relationship management on brand loyalty in one of the private insurance companies in Ethiopia Nyala Insurance share Company. Research is explanatory by nature and it follows a quantitative approach, thus a deductive research approach was used. Data were collected through a five points Likert type summated rating scales of questionnaire. The research is conducted on 310 respondents drawn from Nyala Insurance S.C clients who reside in Addis Ababa and interview is conducted with CRM department staffs of the company and 280 of the questionnaires were properly filled and used for further analysis. Both descriptive and inferential statistics was used to analyze the data collected through questionnaire and examine the hypothesis. Descriptive statistics was used to summarize demographic data of respondents, Principal component analysis was used to extract components and multiple regression analysis is used to establish the relationship between the independent and dependent constructs of the research. The result of the study reveals that CRM has a positive and significant impact on brand loyalty. Moreover, the study indicated that there is significant impact of trust, commitment, and customer satisfaction on predicting brand loyalty. Customer satisfaction emerged as the strong factor which influences brand loyalty. Depending on the findings, practical implications of this study is, in order to ensure the company stability. Nyala insurance should give emphasis to Customer relationship management as a strategic tool to enhance their brand loyalty which helps to gain value from customers and should build a better relationship bond with its customers continuously.