The Effect of Customer Relationship Management Practices on Customer Satisfaction in the Case of Awash Bank, in Mekelle Branches

Abstract

In today’s intensely competitive, rapidly changing and highly complex business environment characterized by diminishing customer satisfaction, the need to be market focused and customer centric is more critical than any other time to build and maintain a strong relationship with the customers in order to achieve the ultimate goal of customer satisfactions for any organization. This study aimed to assess the effect of Customer Relationship Management on customer satisfaction in case of Awash Bank, Mekelle City. The population of the present study is premium customer of six special grade branches by using purposive sampling techniques. The data collection utilized quantitative methods. 186 respondents were selected through convenient sampling and data has been collected through questionnaires which were self-administered by researcher. Multiple regression analysis was used to analyze the data collected. The study proposed that there is statistical positive and significant relationship between CRM elements and customer satisfaction as a dependent variable. The statistical analysis revealed that three independent variables, namely reliability, process driven approach and customer focus were found to be significantly associated with the customers’ satisfaction in Awash Bank, while technology orientation found to not have a significant. The findings of the study contribute enormously to the body of knowledge, as it provides a model to be used for explaining effect of the CRM four dimensions on customers’ satisfaction. From the analysis the researcher recommend Awash should give priority for the application of process driven approach CRM dimension than other dimensions because this dimension has highest effect on customer satisfaction.