Principles and Practices of Customer Relationship Management in Ethiopian Banks

The success of modern business is highly relied on prospective customers and offering competitive services to retain them. Now a day, especially service providing organizations like banks, education institutions, insurance and hospitals etc. are focusing essentially on customer relationship Management practices (CRM) for the purpose of increasing existing customer base and retain customers. The Customer Relationship Management practices demand the fundamental change in the way banks interact with their existing and potential customers. The research paper examines how generally the CRM Principles and Practices are followed in Commercial Bank of Ethiopia-Arba Minch branch. The study used primary data collected from 240 bank customers selected through random sampling method. The study has applied Multiple regression analysis and factor analysis to estimate the relationship between the Customer Satisfaction variables such as Commitment, Trust, Communication, Shared value, Bonding Complaint management and customer relationship management that means any change in any of these variables create significant impact on customer relationships management.