THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER LOYALTY ON BANKING SECTOR

Correlation analysis assessed the relationship between CRM and customer loyalty, and multiple regression analysis used to assess the influence of CRM on customer loyalty. The findings confirm that all the independent variables (trust, commitment, conflict handling, communication, competence and technology have a positive and significant relationship with customer loyalty as well as the variables have a positive and significant influence on customer loyalty. Among the variables Communication has the highest influence on customer loyalty, followed by competence which is the next significant factor of CRM in study area. Therefore, commercial bank of Ethiopia is better to implement CRM appropriately and continuously, so as to get competitive advantage through building long-term profitable relationship with their customers and in order to achieve customer loyalty