The Impact Of Customer Relationship Management On Financial Performance: A Case Study Of Commercial Bank Of Ethiopia

Abstract

The primary objective of this work is to study the impact of customer relationship management on financial performance (a study of Commercial Bank of Ethiopia).  The survey research design was adopted for this study. The target population of this study is commercial bank of Ethiopia comprises of all categories of staff of in the customer service division of bank at the head office. The population size of this organization is 55 employees. These employees were categorized into management staff, middle level staff and the lower level staff. The population size is also adopted as sample size since the entire population is manageable. The overall population of this study was 55 respondents selected which covered the study area. The researcher adopted a descriptive analysis and the descriptive stability mean and standard deviation (correlation) to answer the research questions. The major findings suggest the Commercial Bank of Ethiopia should conduct special training programme to all front stage officers in order to deal positively with customers through identifying main CRM tools in banking industry. The researcher experienced financial difficulties due to economic downturn. It is concluded from the analysis of the study that CRM elements are responsible for creating customer satisfaction. Management of the bank should initiate CRM policies with inputs from the customers so as to serve them better and hence increase customer satisfaction in the banking services. The study revealed that the CRM packages in the bank meets customer needs and satisfaction, therefore more of such strategies should be adopted by the bank. Customer satisfaction approaches should be vigorously pursued in order for the bank to remain in competition with other banks. The study recommends Commercial Bank of Ethiopia should conduct special training programmes to all front stage officers in order to deal positively with customers through identifying main CRM tools in banking industry.