The Effect Of Customer Relationship Marketing On Customer Loyalty: The Case Of Commercial Banks In Ethiopia

Banking industry in Ethiopia has stiff competition thus banks need to consider various strategic options and programs in order to survive and thrive. One of strategy is Customer Relationship Marketing (CRM).This study was aimed to examine the effect of customer relationship marketing dimensions (trust, commitment, conflict handling, and communication) on customer loyalty of commercial banks in Ethiopia. A survey was conducted, collecting data through a questionnaire containing 30 items from sample of 384 conveniently selected bank customers. The statistical result revealed that three relationship marketing dimensions: trust, communication and conflict handling have positive and significant effect on customer loyalty. Whereas commitment has negative and but insignificance effect on customer loyalty. The relationship between relationship marketing and customer loyalty was found partially significant. Banks should focus on CRM so that they are expected to attracting new customers and more on retaining the existed ones with regard to relationship marketing to increase customer loyalty