Abstract:
The aim of this study was to explore the effect of customer relationship management on market
performance of the selected banks‟ in Wayu Town. Many businesses are obliged to develop
long-term profitable relationships with clients and to improve market performance due to the
intense competition in today's business climate. As a result, during the last decade of the 20th
century, CRM has grown increasingly significant, particularly in the service sector. With
reference to CBO bank, Oromia Bank, and Commercial Bank of Ethiopia, this study aims to
empirically explore the impact of CRM (key customer focus, customer knowledge management,
CRM organization, and technology-based CRM) on market performance in the banking business
(CBE A theoretical framework served as a basis for investigating the effect of CRM on market
performance. A quantitative research methodology was applied. Also, a descriptive research
strategy and a cross-sectional study were used. The impact of CRM on market performance was
examined using a theoretical framework as a guide. An approach to quantitative research was
used. In addition, a cross-sectional survey was utilized for this study and a descriptive research
method was adopted. 86 employees of the chosen commercial banks in Wayu town answer a
questionnaire based on prior research and the pertinent literature. Multiple regression analysis
evaluated the impact of CRM on market performance, whereas correlation analysis evaluated
the link between CRM and market performance. The results show that the market performance in
a chosen group of commercial banks is positively and significantly correlated with all the
independent variables (key customer focus, knowledge management, CRM organization, and
technology-based CRM). Also, the study investigates if CRM has a good and substantial impact
on market performance. In addition, it was discovered that the CRM component supporting
customer knowledge management and key customer focus had the greatest impact on market
performance in CBO and CBE, respectively, and in Oromia Bank. In order to accomplish their
market performance, the chosen banks must adopt CRM properly and consistently as a necessary
instrument for acquiring a competitive edge and creating enduring and lucrative connections
with their clients.
