The aim of the study is examine and analyze the effects of customer relationship management Practices such key customer focus, customer knowledge management, CRM based technology, CRM based organization on the marketing performance in terms of customer retention, customer satisfaction, sales growth, market share in case of CBE in Addis Ababa city branches. In this study qualitative and quantitative approach were employed. Besides, explanatory research approach employed to explain the relation between CRM practice and marketing performance and descriptive research approach employed. To achieve this objective data collected from primary source through 5 point likert scale and questionnaires were completed by 166 customers and interviewed 15 branch managers of the commercial banks in Addis Ababa city branches. To select respondent multistage sampling method was employed where bank categorized branches into spatial, grade4 grade3 and grade2 grouped by banks. Proportional stratified sampling was used to consider the number of customers to be sampled from each stratum of the banks and select the branches and customer to participate in the study. Purposive sampling was used to select branch managers because they have enough information on CRM practices. To analyze data the researcher used descriptive tool such as frequencies, percentage, and standard deviation and mean to present result. Correlation analysis assessed the relationship between Customer Relationship Management and market performance and multiple regression analysis analyzed the effect of Customer Relationship Management on market performance. The finding confirm that all the independent variables (key customer focus, knowledge management, CRM based organization and Customer relationship based technology) have a strong and significant relationship with market performance. The study explored that there was a positive and significant effect of Customer Relationship Management on market performance. Therefore, CBE should perform Customer Relationship Management appropriately and continuously to gain Competitive advantage and building long lasting relationships with its customers in order to achieve their market performance.