Abstract:
This research was conducted to investigate the effect of customer relationship marketing on
customer loyalty in case of selected private banks. The data was collected through the five type
likert scales using questionnaires. The questionnaire were physically distributed to 228 Wogagen,
Dashen and Awash Banks’ customers and interview questions were distributed to managers and
supervisors of selected branches from the three banks. Descriptive statistics analysis tools such as
percentages, mean and standard deviation and the inferential statistics methods like correlation
analysis and linear regression model were used to present and explore the overall characteristics of
the data and to extract important information from the data. The linear regression model result
showed that the factors like trust, communication, commitment and conflict handling were
statistically significant at 5% of level of significance and all of them had positive effect on
customer’ loyalty and correlation of all the pillars with customer loyalty were significant and
strong positive. Communication and trust were the most crucial factors as compared to the other
two, so the banks must check and upgrade the communication skill and work hard to upgrade its
trust too in order to increase the profitability of banks to the optimum. The concerned bodies must
give due attention towards the determinant factors in order to upscale the marketing relationship of
the three private banks at study area. Further research on relationship marketing should be done
by adding more pillars of relationship marketing.
