Abstract:
Direct marketing is increasingly recognized as a vital tool for enhancing customer engagement
and fostering growth within Ethiopia's financial services sector. Despite its potential, limited
research exists on its localized application, particularly in institutions like Awash Bank's Head
Office in Addis Ababa. This study addresses this gap by evaluating the effectiveness of direct
marketing practices at Awash Bank, using a mixed-methods approach that incorporates surveys,
interviews, and progress reports. Data was collected from a sample of 108 participants across
management levels and analyzed using SPSS. Key findings reveal that personalized
communication significantly boosts customer loyalty, with 61.1% of respondents acknowledging
its impact. Technological integration drives customer engagements, evidenced by a 76.4%
increase, while the bank's return on investment improved by 25% between 2015 and 2016.
Enhanced communication frequency and the adoption of digital channels, such as social media,
further contributed to customer acquisition and retention, with social media usage growing by
50%.The study underscores direct marketing's potential to advance financial inclusion in
Ethiopia, offering actionable recommendations for Awash Bank. These include leveraging
customer data analytics, adopting innovative digital marketing strategies, prioritizing staff
training, and conducting regular evaluations to align marketing efforts with consumer
preferences and industry trends. Despite challenges such as resource allocation and regulatory
compliance, the integration of technology presents significant opportunities to strengthen
customer relationships. In conclusion, direct marketing is a vital driver for sustainable growth in
Ethiopia's banking sector. Future research should explore its long-term impact on business
performance to enhance competitive advantage and foster enduring financial inclusion.
