Abstract:
Customer relationship management strategies in public and private banking organizations are examined in this research study through a comparison of the Ambo branches of the Commercial Bank of Ethiopia and the Awash Bank. Recently, researchers and practitioners have developed a significant interest in CRM as a strategy. As a result, the study aims to evaluate the status and implementation of CRM by a few public and private banking organizations. Additionally, this study takes into account many CRM factors like strategy, responsiveness, trust, reciprocity, empathy, bonding, and reciprocity. To accomplish the study's goal, a sample of 90 and 85 bank customers from CBE and AIB, respectively, were surveyed for primary data. These respondents were chosen by a straightforward random selection procedure. SPSS was used as a data analysis tool to evaluate the questionnaire-collected data using descriptive and inferential statistical methods. Interviews with the management teams of the chosen public and private banks were also undertaken. According to the study's findings, banks would benefit from recommendations on how to improve customer relationship management in order to survive in a competitive market. In addition to the facts mentioned above, network interruption is another issue that the chosen banks frequently face. The research also makes some recommendations for potential actions to improve the CRM practices of the two banks that were chosen. The study also amply shown how closely related the five CRM dimensions are. CRM thus significantly affects the banking performance of the chosen banks from the perspectives of both customers and the management bodies of the two banks. In general, the two banks need to implement numerous CRM-based customer-focused procedures. However, the chosen banks had their own shortcomings when it came to putting CRM into practice. Comparing the chosen private banks' abilities to implement CRM practices, CBE bank came out on top, followed by AIB bank, in that order. Based on the study's findings, the researcher offers various recommendations, such as ongoing monitoring of service quality, employee training, and regular research on consumer wants, which may aid banks in achieving their goals. In order to reduce organizational expenses, banks should place more emphasis on keeping their valuable present customers than finding new ones. This is because, according to many research findings, keeping existing customers is less expensive than finding new ones.
