Effects Of Customer Relationship Management On Market Performance: A Comparative Study

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.