| dc.description.abstract |
This study examined the effect of Customer Relationship Management (CRM) practices on
customer loyalty among current account customers of Bank of Abyssinia branches in Bahir
Dar City. The study was guided by key objectives focusing on CRM practices, communication
quality, complaint handling, customer trust, and their influence on customer loyalty.A mixed
method research design was employed, using both quantitative and qualitative data. Primary
data were collected through questionnaires distributed to customers and semi-structured
interviews conducted with branch managers. The quantitative data were analyzed using
statistical tools, while the qualitative data were analyzed using thematic analysis to identify
key patterns and themes based on the study objectives. The findings reveal that CRM practices
significantly influence customer loyalty through the provision of high-quality, personalized,
and responsive customer service. Effective communication mainly through face-to-face
interaction, suggestion and customer feedback mechanisms was found to enhance
transparency, understanding, and trust. Complaint handling systems were also identified as
important in maintaining customer satisfaction, although challenges such as budget
constraints, administrative delays, and system limitations occasionally hinder timely
resolution. Customer trust emerged as the most critical factor influencing loyalty, with
customers showing preference for the bank due to its reliability, service consistency, and
institutional reputation. In addition, the use of digital banking technologies and modern
service delivery systems was found to strengthen customer convenience and retention. Overall,
the study concludes that effective CRM practices play a vital role in enhancing customer
loyalty. The integration of strong interpersonal service, efficient communication, reliable
complaint handling, and modern banking technologies contributes significantly to customer
satisfaction and long-term relationships. The findings support the view that CRM is a key
strategic tool for sustaining competitiveness and customer retention in the banking sector. |
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