THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER LOYALTY: A CASE OF DASHEN BANK S.C ROBE AREA

Abstract The general objective of the study is to assess the effect of customer relationship management on customer loyalty: the case of Dashen bank s.c Robe area. The data collected from 323customer and 9customer service employees. Both primary and secondary data collection instruments were used to collect data. Closed-ended questionnaires along with interviewwere used for data collection. The selections of the customer carried out by using convenience samplingtechniques, further, leaders from the sample sectors taken by using purposive sampling. The quantitative data analyzed with, frequency, percentages, correlation and regression.Regarding customer loyalty level, the study indicted the customer loyalty level were at low level. The study also concluded that the sample bank interacts with its regular customers in a warm and personal way. The study also concluded there is gap at the implementation of trust between customer and the sample bank. Further, the study found that the sample bank has gab ability to coordinated deployment of assets in a way that helps a firm achieve its goals. The study also indicated the bank has engagement towards its client through its efforts to resolve the conflict and its willingness to openly discuss reasons and possible satisfactory solutions. The study also indicted the banks avoid potential conflicts; solve manifest conflicts before they create problems. In general the study found that conflict handling had the greatest effect on the customer loyalty, followed by commitment and communication, while competence and trust had insignificant effect on the customer loyalty.Since trust has insignificant effect on customers loyalty. That means the bank should be careful about providing quality service and their promises should be reliable to discharge obligations and fulfill promises should be clear. In order to enhance customer loyalty, the bank should make continuous effort to enhance the CRM dimensions specially competence which has insignificantly effect on customer loyalty. 1