Effect of Customer Relationship Management on Commercial Bank Customers Satisfaction and Retention the Case of Selected Commercial Banks Operating in Hawassa City Administration Sidama Regional State Ethiopia

Abstract

This study aims to investigate the effect of Customer Relationship Management (CRM) on newlinecommercial bank customer s satisfaction and retention in Ethiopia. Employing a mixed research approach encompassing both descriptive and explanatory methods, data was gathered from 375 bank customers through questionnaires and interviews. The analysis utilized various statistical measures including frequency, percentage, mean, standard deviation, correlation, and multiple newlinelinear regression. The findings demonstrate that customer relationship management is a crucial driver, demonstrating a noteworthy positive impact on both customer satisfaction and retention rates. Furthermore, the study underscores the pivotal role played by a well -organized Customer Relationship Management (CRM) framework within banking institutions, showcasing its substantial influence on enhancing customer contentment and loyalty. Additionally, the proficient management and utilization of knowledge resources were found to be instrumental in augmenting the overall satisfaction levels of customers. Moreover, the integration of technology based CRM newlinesolutions was identified as a significant newlinecatalyst, providing a seamless and enriched customer experience, thereby contributing newlinesignificantly to heightened levels of satisfaction and retention. Based on these results, it is recommended that banks emphasize personalized serv ices and close collaboration with key customers. Additionally, investments in CRM tools and newlinesoliciting regular feedback are essential for establishing enduring relationships and enhancing competitiveness. Implementing best practices in service delivery is crucial, along with dedicating resources towards technology and staff to facilitate personalized interactions and elevate overall newlinecustomer satisfaction and retention levels. newline