The Effect Of Customer Relationship Management Practices On Market Performance In Selected Commercial Banks Branch Managers Perspective

Due to fierce competition in today’s business environment, many companies are required tornbuild long- term profitable relationship with customers and to achieve better marketrnperformance. Therefore, Customer Relationship Management has become more and morernimportant since the last decade of 20th century, especially in the service industry. As a result,rnthis study is aimed to empirically investigate the influence of Customer RelationshiprnManagement (customer identification, customer attraction, customer retention, key customerrnfocus, customer knowledge management, Customer Relationship Management organization andrntechnology based Customer Relationship Management) on market performance in bankingrnindustry with reference to Commercial Bank of Ethiopia, Awash Bank and Oromia InternationalrnBank . A theoretical framework was used as a guideline to test the influence of CustomerrnRelationship Management on market performance. A quantitative research approach wasrnimplemented. Besides, a descriptive research design was used for this study. A questionnairernderived from previous studies and the relevant literature is completed by 209 managers of thernselected commercial banks in Addis Ababa city. Correlation analysis assessed the relationshiprnbetween Customer Relationship Management and market performance and multiple regressionrnanalysis assessed the influence of Customer Relationship Management on market performance.rnThe findings confirm that all the independent variables (customer identification, attraction,rnretention, key customer focus, knowledge management, Customer Relationship Managementrnorganization and technology based Customer Relationship Management) have a positive andrnsignificant relationship with market performance in selected commercial banks. Moreover, thernstudy explore that there is a positive and significant influence of Customer RelationshiprnManagement on market performance. Therefore, the selected banks have to implement CustomerrnRelationship Management appropriately and continuously, as an indispensable tool for gainingrncompetitive advantage and building long – lasting and profitable relationships with its customersrnin order to achieve their market performance.

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