IMPACT OF CUSTOMER RELATIONSHIP MARKETING ON CUSTOMER LOYALTY: A CASE OF COMMERCIAL BANK OF ETHIOPIA, DILLA BRANCH

This study is conducted to identify the impact of customer relationship marketing on customer loyalty: A case of Commercial Bank of Ethiopia, Dilla Branch. The study employed explanatory and descriptive research design with a quantitative research approach. The required data were collected from 338 selected bank customers by using a convenient sampling technique. The data collected through questionnaire were analyzed using both descriptive and inferential statistics with the help of SPSS software version 21. Descriptive statistics such as frequency, percentage, mean, and standard deviation were used. Besides, inferential statistics such as correlation and multiple linear regression were applied. The findings of the study showed that trust, commitment, communication, and conflict handling have significant impact and predict good proportion of variance on customer loyalty. It is reasonable to conclude that customer loyalty can be created, reinforced, and retained by building trust, demonstrating commitment to service, communicating with customers in a timely, reliable, and proactive fashion, and handling conflict efficiently. Therefore, the researcher recommends that to enhance customer trust, commitment, communication, and conflict handling, the bank should put its efforts into effectively implementing relationship marketing.