THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES ON CUSTOMER LOYALTY IN BGI –ETHIOPIA

Abstract

This study evaluates how various CRM dimensions—Key Customer Focus, Knowledge Management, CRM Organization, and Information Technology-Based CRM—impact customer loyalty in the competitive Ethiopian beer market. Using a descriptive and causal research design, both quantitative and qualitative data were collected from 190 employees at BGI Ethiopia's headquarters in Addis Ababa. The sample included employees from Sales, Marketing, Customer Service, IT, Human Resources, CRM Management, and Finance, using a stratified random sampling technique. Data analysis with SPSS software employed both descriptive and inferential statistical methods. Findings indicate a significant positive correlation between CRM practices and customer loyalty, with CRM Organization and Information Technology-Based CRM being the most influential predictors. Employees emphasized the importance of strong organizational support, effective technology use, and robust knowledge management in enhancing customer loyalty. Demographic characteristics of respondents were also analyzed, including gender, age, marital status, education level, department, and years of experience. Inferential statistics, such as correlation and regression analysis, identified significant predictors of customer loyalty. This research contributes to CRM knowledge by providing empirical evidence from Ethiopia's brewing industry, offering actionable recommendations for BGI Ethiopia and similar markets. Future research should consider larger sample sizes and include customer perspectives for a more comprehensive understanding of CRM effectiveness