In todayâ€™s intensely competitive, rapidly changing and highly complex business environmentrncharacterized by diminishing customer loyalty, the need to be market focused and customerrncentric is more critical than any other time for any organization. Customer relationshiprnmanagement has emerged recently and become competitive advantage for firms in financialrnsector. The importance of CRM is highly increasing to firms as they seek to improve their profitsrnthrough long-term relationships with customers. Despite the widespread adoption of CRMrnsystems by firms operating in financial sector researches have shown little concern regarding therneffectiveness of CRM and its effect on customer satisfaction. A model is tested to determine thernpredictive power of the five CRM effectiveness dimensions on customer satisfaction. A surveyrnquestionnaire adopted was employed to collect data. Accordingly data was collected from 209rnCommercial Bank of Ethiopia customers. The research has found that the CRM dimensionsrnnamely: organizational commitment, customer experience, process driven approach, reliabilityrnand technology orientation are positively correlated to customer satisfaction with r value rangingrnfrom 0.412-0.698. The findings also indicated that among the dimensions; process drivenrnapproach, technology orientation and organizational commitment have strong effect on customerrnsatisfaction, Process-driven approach dimension being the highest to influence customerrnsatisfaction. Although the study has its limitations, the implications of the results allow providingrnpractical recommendations to the banking industry, and directions for further research in thernarea