The Application Of Customer Relationship Management And Its Effect On Customer Loyalty In Commercial Bank Of Ethiopia

This paper presents the level of customer relationship management (CRM) dimensions(keyrncustomer focus, CRM organization, knowledge management and technology based CRM) asrnapplied in the Commercial Bank of Ethiopia (CBE)-under credit process, examined from therncredit customers’ point of view. Then, it intends to measure their effect on customer loyalty fromrnthe credit customers’ point of view. The researcher collects data from CBE-credit customers byrndistributing questionnaires which measured their agreement and disagreement on CRM activitiesrnof the bank credit process and their level of loyalty to the bank credit process by using five pointrnLikert scale. To obtain representative samples, in selecting the research respondents, stratifiedrnsampling technique was applied, this sampling method helps for a population from which samplernhas been constitute a heterogeneous group, therefore the study takes 16 and 369 trading andrnnone trading credit customers respectively respondents as target respondents from theserncustomers. The response rate was 78.96 %.The study was descriptive, explanatory and crosssectionalrnin nature. After the data was collected through structured questionnaire, computationrnand analysis is done by using SPSS (Statistic Package for Social Science) version 20 software.rnDescriptive statistics Mean Score, Standard Deviation and inferential statistics like Correlationrntest using Pearson’s correlation and Multiple Regression analysis are used in order to addressrnthe initial research question of the study. The findings show that the CBE-credit process appliesrnCRM dimensions but the level of application of each dimension differs. The results showed thatrneach CRM dimension has a significant positive effect in CBE-under credit process. Thernresearcher recommends that applying all CRM dimension will increase customer loyalty, sornCBE-credit process should work on applying CRM in a full scale and major concern should berngiven to knowledge management dimension because it is the least applied dimension and it is thernone with highest effect on customer loyalty in CBE-credit process

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