THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER LOYALTY ON BANKING SECTOR
Keywords:
Customer Relationship Management, Customer Loyalty, Commercial Bank And WerabeAbstract
The general objective of this study is to examine the effect of CRM on customer loyalty in commercial bank of Ethiopia in werabe town. To achieve the objective of the study necessary data were collected through the five points Likert Scale of questionnaires through convenient random sampling method. To achieve the intended objective explanatory and descriptive research design with a quantitative research approach was implemented. In the descriptive analysis tools such as frequency, percentage, mean and standard deviation were used while for the inferential analysis correlation and multiple liner regression was adopted by using SPSS V.21 and Questionnaire’s reliability was estimated by calculating Cronbach’s Alpha.
Correlation analysis assessed the relationship between CRM and customer loyalty, and multiple regression analysis used to assess the influence of CRM on customer loyalty. The findings confirm that all the independent variables (trust, commitment, conflict handling, communication, competence and technology have a positive and significant relationship with customer loyalty as well as the variables have a positive and significant influence on customer loyalty. Among the variables Communication has the highest influence on customer loyalty, followed by competence which is the next significant factor of CRM in study area. Therefore, commercial bank of Ethiopia is better to implement CRM appropriately and continuously, so as to get competitive advantage through building long-term profitable relationship with their customers and in order to achieve customer loyalty.
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