BIRANA COLLEGE

DEPARTMENT OF MANAGEMENT
ASSESSIMENT OF THE ROLE OF CUSTOMER RELATIONSHIP
MANAGEMENAT ON CUSTOMER LOYALTY (IN CASE OF COMMERCIAL
BANK OF ETHIOPIA DEBRE MARKOS, NIGUS TEKLE HAYMANOT
BRANCH)

A Proposal submitted to the Department of Management in Partial Fulfilment

of the Requirements for the Bachelor of Art (BA) degree in Management

By
1. Natnael Abebaw BME/081/13
2. Kebebew Abewa BME/043/13
3. Manayesh Abebe BME/045/13
4. Zelalem Amare BME/070/13
5. Haymanot Yohanes BME/02/13
6. Lakech Damtie BME/087/13
7. Belaynesh Ayenew BME/074/13

Advisor:

July, 2024
Table of Contents
CHAPTER ONE ......................................................................................................................................... 1
1. INTRODUCTION............................................................................................................................... 1
1.1. Statement of the Problem ............................................................................................................ 1
1.2. Objectives of the study ................................................................................................................. 2
1.3. Significance of the study .................................................................................................................... 3
CHAPTER TWO ........................................................................................................................................ 4
2. LITERATURE REVIEW................................................................................................................... 4
2.1 Definition of Customer Relationship Management ............................................................................ 4
2.2 Role of Customer relationship management ...................................................................................... 5
2.2.1 Role of customer relationship manager ................................................................................... 5
2.3 Benefits of Customer Relationship Management ............................................................................... 5
2.4 Components of Customer relationship management ........................................................................ 6
2.5 Customers relationship management objective ................................................................................. 6
2.6 Customer Relationship Management in Banking Industry ................................................................. 7
2.6.1 Challenges of CRM in the Bank ............................................................................................... 7
2.7 Definition of Customer loyalty ............................................................................................................ 8
2.8 Benefit of Customer Loyalty ............................................................................................................... 8
2.9 Effect of CRM on customer loyalty ..................................................................................................... 9
CHAPTER THREE .................................................................................................................................. 10
3. RESEARCH METHODS ..................................................................................................................... 10
3.1 Research Design ................................................................................................................................ 10
3.2 Research Approach ........................................................................................................................... 10
3.3 Data Sources ..................................................................................................................................... 10
3.4 Sampling Technique .......................................................................................................................... 11
3.5 Method of Data Collection ................................................................................................................ 11
3.6 Population of Study........................................................................................................................... 11
3.7 Sampling Techniques and Sample Size Determination ..................................................................... 12
3.8 Data collection procedure and data analysis methodology ............................................................. 12
3.9 Data Analysis and Presentation ........................................................................................................ 12
4. REFERENCES ...................................................................................................................................... 17
 CHAPTER ONE
1. INTRODUCTION
In today's competitive banking sector, customer loyalty is a critical determinant of long-term
success and profitability. Customer Relationship Management (CRM) has emerged as a strategic
tool to enhance customer satisfaction and loyalty. This research proposal aims to assess the role of
CRM in fostering customer loyalty, with a specific focus on the Commercial Bank of Ethiopia
Debre Markos Nigus T/Haymanot branch.
The banking industry in Ethiopia is experiencing rapid growth and transformation, driven by
advancements in technology and changing customer expectations. As a result, banks are
increasingly adopting CRM systems to manage interactions with customers, streamline operations,
and provide personalized services. However, the effectiveness of these CRM initiatives in building
and sustaining customer loyalty remains underexplored.
This study seeks to fill this gap by evaluating how CRM practices at the Debre Markos Nigus
T/Haymanot Branch of the Commercial Bank of Ethiopia influence customer loyalty. The research
will explore various dimensions of CRM, including customer satisfaction, service quality, and
personalized banking experiences, and their impact on customer retention and loyalty.
Understanding the relationship between CRM and customer loyalty is crucial for the bank to
develop strategies that enhance customer engagement and satisfaction. This research will provide
valuable insights into the effectiveness of current CRM practices and offer recommendations for
improving customer loyalty through targeted CRM initiatives. By doing so, the study aims to
contribute to the broader literature on CRM in the banking sector and support the Commercial
Bank of Ethiopia in achieving its customer-centric objectives.

1.1. Statement of the Problem

The Commercial Bank of Ethiopia (CBE), particularly at its Debre Markos Nigus T/Haymanot
branch, is faced with significant challenges in effectively implementing Customer Relationship
Management (CRM) practices to enhance customer loyalty. The broader Ethiopian banking
industry shows a limited engagement in CRM strategies, which potentially hinders long-term
growth and profitability. In an era of global competition where banks offer similar products and
services, the ability to retain customers through effective CRM practices has become crucial.
Despite the adoption of CRM systems, there are several critical issues that need addressing:
1. Lack of Adoption of CRM in Ethiopian Banking: The Ethiopian banking sector, including CBE,
demonstrates a limited engagement in comprehensive and effective CRM practices. This
deficiency may prevent banks from achieving sustained growth and profitability, as customer
loyalty is not adequately fostered.
2. Global Competition and Customer Retention: In a highly competitive global market, banks like
CBE face challenges in retaining customers who have access to similar offerings from various

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institutions. This necessitates the adoption of robust CRM strategies to differentiate and retain
customers.
3. Measurement of Customer Satisfaction: There is a significant struggle in effectively measuring
customer satisfaction within the banking sector. This is critical, as understanding customer
satisfaction is essential for maintaining and enhancing customer relationships through CRM
initiatives.
4. Impact of CRM on Customer Loyalty: There is a
pressing need to evaluate and understand the direct impact of CRM practices on customer loyalty.
Without this understanding, banks cannot make informed decisions to improve customer retention
and profitability.
5. Handling Customer Complaints: Efficiently handling customer complaints remains a challenge
for banks, impacting their ability to retain loyal customers and enhance overall customer
satisfaction through CRM implementations. Inadequate complaint resolution mechanisms can lead
to dissatisfaction and loss of trust among customers.
The core problem to be addressed in this research proposal is:
To what extent do CRM practices at the Commercial Bank of Ethiopia’s Debre Markos Nigus
T/Haymanot branch influence customer loyalty, and what specific improvements can be made to
enhance the effectiveness of these practices in the face of global competition and customer
retention challenges?
By investigating these issues, the research aims to provide a detailed analysis of the current state
of CRM at the Debre Markos Nigus T/Haymanot branch, identify gaps and challenges, and offer
practical recommendations for improving customer loyalty. The ultimate goal is to help the branch
better meet customer needs, retain their loyalty, and maintain a competitive edge in the banking
industry.

Therefore, the research problem addressed in this proposal is to investigate the following research
questions:
1, what is the role of customer relationship management on customer loyalty?
2, what are the Main reasons for poor customer relationship management?
3, How the banks use to make customer loyal?

1.2. Objectives of the study

The primary objective of this study is to assess the impact of Customer Relationship Management
(CRM) practices on customer loyalty at the Debre Markos Nigus T/Haymanot branch of the
Commercial Bank of Ethiopia. Specifically, the study aims to:

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1. Evaluate the current CRM strategies and practices implemented at the Debre Markos Nigus
T/Haymanot branch.
2. Analyze the relationship between CRM effectiveness and customer loyalty within the context
of the Ethiopian banking sector.
3. Identify key factors that influence customer retention and satisfaction through CRM initiatives.
4. Recommend practical strategies and improvements to enhance CRM effectiveness and
strengthen long-term customer relationships at the branch.
By achieving these objectives, the study seeks to provide valuable insights into enhancing
customer loyalty through effective CRM practices, thereby contributing to the strategic
management and operational efficiency of the Commercial Bank of Ethiopia's Debre Markos
Nigus T/Haymanot branch.

1.3. Significance of the study

This study holds several significant implications:
1. Contribution to Banking Sector Knowledge: It contributes to the existing body of knowledge
in the banking sector, particularly in Ethiopia, by providing a detailed analysis of CRM practices
and their impact on customer loyalty. This is crucial for banks seeking to improve customer
retention strategies in a competitive market.
2. Strategic Insights for Commercial Bank of Ethiopia: The findings will offer strategic insights
to the Commercial Bank of Ethiopia, especially the Debre Markos Nigus T/Haymanot branch,
enabling them to refine their CRM practices effectively. This can lead to enhanced customer
satisfaction, loyalty, and ultimately, improved financial performance.
3. Operational Efficiency and Customer Service Enhancement: By identifying key factors
influencing customer loyalty through CRM, the study will help in optimizing operational processes
and enhancing customer service delivery at the branch level.
4. Policy and Decision-Making Support: The recommendations derived from the study can
support policymakers and decision-makers within the bank in formulating effective CRM
strategies aligned with customer needs and expectations.
5. Academic Contribution: Academically, this study will serve as a valuable resource for future
research on CRM in the banking sector, providing a benchmark for further exploration and analysis
in similar contexts.
Overall, the study's significance lies in its potential to improve customer relationship management
practices within the Commercial Bank of Ethiopia's Debre Markos Nigus T/Haymanot branch,
thereby fostering sustainable customer loyalty and competitive advantage in the Ethiopian banking
industry.

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 CHAPTER TWO
2. LITERATURE REVIEW
Customer Relationship Management (CRM) has been extensively studied in marketing over the
past 35 years. Initially derived from "contract management," CRM focuses on maintaining
customer details for future interactions. It is a strategic approach aimed at fostering long-term,
mutually beneficial relationships with customers by collecting and utilizing data on their
preferences (Bergeron, 2002; Sun, 2009).
CRM systems have become pivotal in various sectors, serving as a primary business strategy in
today's competitive landscape. Effective CRM integrates technology, processes, and personnel to
enhance customer satisfaction, thereby increasing market share and profitability (Long et al.,
2013).
Defined as a comprehensive strategy, CRM involves acquiring, retaining, and partnering with
customers to create value for both the company and the customer (Parvatiyar and Sheth, 2001). It
leverages intense customer communication to improve customer loyalty and profitability, utilizing
technology across research, technology, and e-commerce domains (Swift, 2000; Foss and Stone,
2001).
Overall, CRM aims to enhance organizational decision-making related to customers, thereby
improving marketing and organizational performance (Zablah, 2004).

2.1 Definition of Customer Relationship Management

Customer Relationship Management (CRM) involves managing interactions with customers,
clients, and prospects using technology to streamline business processes (Zablah, 2004). It aims to
enhance profitability,
income, and customer satisfaction through strategic business approaches rather than purely
technical solutions (Dowling, 2002).
CRM focuses on identifying, nurturing, and maintaining profitable customer relationships,
exceeding customer expectations through quality service (McDonald, 2000). It strategically
attracts and retains profitable customers, leveraging relationships for growth and utilizing data to
understand and co-create value with customers (Kracklauer, 2001; Payne and Frow, 2005).
CRM is a strategic business strategy aimed at enhancing profitability, revenue, and customer
satisfaction through the systematic use of tools and technologies across the organization (Sieney
Group, 2000). It integrates these tools and processes to meet customer needs effectively during
interactions, enhancing efficiency in selling products and services (Bose, 2002).

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 2.2 Role of Customer relationship management
The trends outlined here help explain why CRM has become a critical business issue. However,
the adoption and implementation of CRM face challenges due to varying interpretations among
organizations. Some perceive CRM as direct mail campaigns, loyalty programs, or database
management, while others view it as call centers, help desks, or e-commerce solutions like
personalization engines or relational databases (Bose, 2002). This fragmented perspective can
hinder the holistic adoption of CRM strategies within organizations.

2.2.1 Role of customer relationship manager

A customer relationship manager (CRM) plays a crucial role in enhancing the customer experience
beyond the initial sale. They are responsible for maintaining ongoing relationships with customers,
ensuring they are informed about products and services to foster loyalty and satisfaction. CRM
managers collaborate closely with sales, marketing, and customer service teams to implement
customer analysis, build positive client relationships, monitor satisfaction levels, and address any
issues promptly. They also manage communications regarding new offerings, personalize
interactions, reinforce loyalty, engage customers through social media, and stay informed about
competitors to optimize customer success.

2.3 Benefits of Customer Relationship Management

Benefits of Customer Relationship Management (CRM) according to Swift (2001) and Blery
(2006):
1. Lower Cost of Recruiting Customers: Decreased expenses in marketing, mailing, and follow-
up activities lead to reduced customer acquisition costs.
2. Increased Customer Retention: Enhanced customer satisfaction and loyalty result in longer
customer retention periods and increased frequency of purchases.
3. Reduced Sales Costs: Lower costs associated with selling due to more responsive existing
customers and effective channel management.
4. Higher Customer Profitability: Improved profitability through increased wallet share, cross-
selling, up-selling, and customer referrals.
5. Operational Improvements: Streamlined operations with a unified platform that enhances
employee capabilities and reduces maintenance and support issues.
6. Enhanced Customer Perception: CRM allows businesses to demonstrate to customers that they
are known, understood, cared for, and appreciated, thereby strengthening customer relationships
and loyalty.

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 2.4 Components of Customer relationship management
1. Trust: Trust is foundational in CRM and refers to the confidence and reliance customers have
in a supplier or service provider. Positive experiences foster trust, while betrayal can lead to
customer defection (Jusˇcˇius and Grigaite, 2011; Ndubisi and Wah, 2005; Vesel and Zabkar,
2010).
2. Commitment: Commitment in CRM denotes the intention and behaviors aimed at creating long-
term value for both parties involved. It reflects a dedication to maintaining and nurturing the
relationship over time (Vesel and Zabkar, 2010).
3. Communication: Effective communication is crucial in CRM, encompassing both warm,
personal interactions with customers and the exchange of meaningful information. Personalized
communication, including the use of customers' names, helps in building familiarity and trust
(Naoui and Zaiem, 2010; Sin et al., 2002).
4. Conflict Handling: CRM involves managing conflicts that may arise between the organization
and its customers. This includes identifying tensions early, resolving issues openly and effectively,
and demonstrating commitment to customer satisfaction through conflict resolution efforts (Naoui
and Zaiem, 2010; Dwyer et al., 1987).

2.5 Customers relationship management objective

Here are the main objectives of Customer Relationship Management (CRM) by Xu & Walton
(2005):
1. Improve Customer Satisfaction: Enhance customer experience and satisfaction through
personalized interactions and efficient service delivery.
2. Retain Existing Customers: Increase retention rates by fostering strong, long-term relationships
with current customers.
3. Provide Strategic Information: Utilize customer data and insights to inform strategic decision-
making across the organization.
4. Improve Customer Lifetime Value: Maximize the profitability of each customer over their
entire relationship with the company by increasing repeat purchases and reducing churn.
5. Enhance Communication Process with Customers: Streamline communication channels to
ensure timely and relevant interactions with customers, promoting engagement and loyalty.
6. Increase Customer Loyalty: Build strong emotional connections with customers to foster loyalty
and advocacy.
7. Understand Customer Needs: Gain deep insights into customer preferences, behaviors, and
needs to tailor products, services, and marketing efforts effectively.
These objectives collectively support CRM as a comprehensive business strategy aimed at
optimizing customer relationships and driving business growth.

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 2.6 Customer Relationship Management in Banking Industry
Customer Relationship Management (CRM) has become crucial in the banking industry, driven
by increasing competition and the need for banks to better understand and serve their customers.
Here are the advantages and outcomes of CRM implementation in banking:
1. Identifying Real Customers: CRM helps banks distinguish genuine, profitable customers in the
long term, facilitating more effective relationship management.
2. Customer-Centric Bank Management: CRM shifts banks towards a customer-centric approach,
where decisions and strategies are based on customer insights and needs.
3. Enhancing Human Relationships with Technology: CRM integrates technology to enhance
personalized customer interactions, leveraging data for tailored sales approaches.
4. Reshaping Marketing and Sales Campaigns: CRM enables banks to refine and personalize
marketing and sales efforts based on customer behavior and preferences.
5. Competitive Advantage: Successful CRM implementation provides a sustainable competitive
advantage by improving customer satisfaction, loyalty, and overall productivity.
6. Creating a Customer-Centric Culture: Banks adopting CRM aim to foster a culture that
prioritizes customer needs and relationships throughout the organization.
7. Securing Customer Relationships: CRM strategies focus on building and maintaining strong,
lasting customer relationships through personalized service and engagement.
8. Maximizing Customer Profitability: By identifying and catering to the most valuable customer
segments, CRM helps banks maximize profitability and lifetime value.
9. Alignment of Efforts: CRM aligns bank resources and efforts behind key customer groups,
optimizing operational efficiency and service delivery.

2.6.1 Challenges of CRM in the Bank

Implementing Customer Relationship Management (CRM) in the banking industry presents
several challenges, as highlighted by Antony Lawrence (2010):
1. Complex Implementation: While selecting the right CRM tools may not be an issue,
implementing them effectively across various channels like ATMs, email, voice recognition, and
mobile can be challenging. Banks often struggle with integrating these tools seamlessly into their
existing operations.
2. Tracking Profitable Customers: It's difficult for banks to consistently identify and target
profitable customers across multiple contact channels. This challenge requires robust systems and
processes to track customer behavior and preferences accurately.
3. Customer Expectations: Meeting evolving customer expectations is crucial. CRM helps banks
adapt to changing customer needs, but doing so effectively requires continuous improvement and
adaptation of service offerings.

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4. Retention of Profitable Relationships: Retaining and maximizing the profitability of existing
customer relationships is a key challenge. Banks must ensure that their CRM strategies not only
attract but also retain customers through personalized and high-quality service.
5. Competitive Pressure: Banks face intense competition, prompting them to adopt CRM tools to
enhance customer satisfaction and loyalty. However, the effectiveness of these tools depends on
how well they align with customer expectations and competitive strategies.
6. Building Customer Loyalty: CRM strategies focus on fostering loyalty through positive staff
interactions, honesty, integrity, and consistent service delivery. However, achieving and
maintaining customer loyalty requires continuous effort and commitment from the bank.

2.7 Definition of Customer loyalty

Customer loyalty can be defined as the continuous belief and commitment of a customer to the
products or services offered by a company. Loyal customers consistently choose to spend their
time, money, and effort on a specific brand or supplier, often based on positive emotional
experiences and satisfaction with the products or services.
According to Zeithaml (2000), customer loyalty can be classified into two main components:
1. Behavioral Loyalty: This occurs when a customer repeatedly purchases or uses the same
products or services from a specific company. It reflects the customer's habitual behavior in
choosing a particular brand over others.
2. Attitudinal Loyalty: This refers to the customer's positive attitude and intention to continue a
relationship with the service provider. It indicates the customer's emotional attachment and
preference for the brand based on their beliefs, perceptions, and experiences with the company.

2.8 Benefit of Customer Loyalty

Here is an expanded discussion on the benefits of customer loyalty programs, along with the
sources for each point:
1. Retention of Customers: Customer loyalty programs are effective in retaining existing customers
by providing incentives for repeat purchases. This reduces the need for businesses to constantly
attract new customers, which is generally more costly (Loyalty Lion (2014).
2. Competitive Advantage: By focusing on emotional connections through loyalty programs,
businesses can differentiate themselves from competitors who may solely compete on price. This
emotional bond enhances customer loyalty and reduces price sensitivity (LoyaltyLion (2014).
3. Increased Customer Lifetime Value (CLV): Loyalty programs enable businesses to monitor
customer behavior closely and reward them appropriately. This monitoring helps in understanding
customer preferences and behaviors, thereby increasing their lifetime value to the company
(LoyaltyLion (2014).
4. Building Personalized Relationships: Loyalty programs gather valuable customer data that can
be used to personalize interactions and offerings. This personalization strengthens the emotional
connection between the company and its customers (LoyaltyLion (2014).

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5. Creating Brand Advocates: Satisfied customers participating in loyalty programs are more likely
to become advocates for the brand. They recommend products and services to their social circles,
contributing to organic growth and reduced marketing costs (LoyaltyLion (2014).
6. Ensuring Long-term Profitability: Customer loyalty programs contribute to sustainable
profitability by increasing repeat purchases and fostering a loyal customer base. This stability
reduces the risk of market share erosion to competitors (Palmatier et al. (2007).
7. Enhancing Market Position: A strong base of loyal
customers enhance the company's market position. Loyal customers actively seek the company's
products and services, providing a competitive edge in the marketplace. (Palmatier et al. (2007).

2.9 Effect of CRM on customer loyalty

Customer loyalty is a crucial aspect for businesses, defined as a customer's commitment to
continue purchasing products or services from a particular firm. This commitment not only leads
to repeat business but also encourages the customer to advocate for the firm, thus influencing
others to engage with it. Loyal customers are considered invaluable assets because they contribute
significantly to the long-term profitability of an organization.
In a business context, loyalty is viewed as both a psychological process and an observable
behavior, where customers intentionally continue or intensify their relationship with a company
based on specific reasons (Keaveney, 1995). Customer loyalty is closely tied to a service provider's
ability to maintain customer satisfaction and convince them to recommend its offerings to others
(Zeithaml et al., 1996).
According to Richards & Jones (2008), Customer Relationship Management (CRM) impacts
customer loyalty through two primary dimensions:
1. Service Quality: This encompasses aspects such as management, corporate image, and social
responsibility. High service quality not only satisfies customers but also enhances their loyalty by
ensuring their needs are met effectively and consistently.
2. Customer Value: Customers evaluate the worth of a service based on factors like price and
quality. Successful firms gauge customer perceived value and tailor their marketing strategies
accordingly to create mutual value for both the firm and its customers (Wang et al., 2004).
Roberts et al. (2003) propose six indicators to measure customer loyalty: sharing information about
the firm, making positive recommendations, continuing to purchase, purchasing additional
services, and willingness to test new services. These indicators reflect the depth and breadth of
customer loyalty, which can be effectively fostered through a well-executed CRM strategy.

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 CHAPTER THREE
3. RESEARCH METHODS
3.1 Research Design
Descriptive Research Design:
- Utilize descriptive research to describe and analyze the nature of the existing situation regarding
customer loyalty influenced by CRM practices in commercial banks.
- Compare and contrast different aspects of CRM strategies and their impact on customer loyalty.
- Classify and analyze data to identify patterns and trends in customer behavior and loyalty.

3.2 Research Approach

Mixed Research Approach:
- Qualitative Research: Conduct qualitative research to gain insights into the perceptions, attitudes,
and experiences of customers towards CRM practices. Methods could include:
- Interviews: Structured or semi-structured interviews with bank managers to understand their
perspectives on CRM strategies and their perceived impact on customer loyalty.
- Focus Groups: Gather a group of customers to discuss their experiences with the bank's CRM
initiatives, allowing for deeper exploration of attitudes and opinions.
- Quantitative Research: Collect quantitative data to measure the effectiveness of CRM on
customer loyalty using numerical data. Methods could include:
- Questionnaires: Distribute questionnaires to a sample of bank customers to gather data on their
satisfaction levels, loyalty behaviors (e.g., repeat purchases, referrals), and perceptions of CRM
practices.
- Surveys: Conduct surveys to assess customer perceptions of service quality, trust, commitment,
and overall satisfaction influenced by CRM initiatives.

3.3 Data Sources

Primary Data Sources:
- Questionnaires: Use structured questionnaires to collect quantitative data from a large number
of bank customers. Focus on measuring satisfaction levels, loyalty behaviors, and perceptions
related to CRM practices.
- Interviews: Conduct interviews with bank managers to gather qualitative insights into the
implementation, challenges, and outcomes of CRM strategies from the organizational perspective.

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 3.4 Sampling Technique
- Purposeful Sampling: Select customers who have actively engaged with the CRM initiatives and
represent diverse demographics and banking behaviors.
- Convenience Sampling: Choose bank managers who are directly involved in implementing CRM
strategies at the branch level.

3.5 Method of Data Collection

Questionnaires for Customers:
- Purpose: To collect quantitative data on customer satisfaction, loyalty behaviors, and perceptions
of CRM effectiveness.
- Design: Include both open-ended and closed-ended questions to gather qualitative and
quantitative data respectively.
- Closed-ended Questions: Provide structured responses that can be easily quantified and
analyzed statistically.
- Open-ended Questions: Allow customers to provide detailed opinions, experiences, and
suggestions related to CRM and their loyalty to the bank.
- Distribution: Administer questionnaires to a sample of customers at the Debre Markos Nigus
T/Haymanot branch of the commercial bank of Ethiopia.
- Method: Customers will be asked to fill out the questionnaires independently, ensuring privacy
and freedom to express their views.
Interviews with Bank Managers:
- Purpose: To gather qualitative insights from bank managers regarding CRM strategies,
implementation challenges, and perceived impacts on customer loyalty.
- Format: Conduct semi-structured interviews with predefined questions while allowing flexibility
to explore relevant topics in depth.
- Data Collection: Take notes during interviews to capture qualitative data such as opinions,
explanations, and managerial insights.
- Participants: Interview bank managers directly involved in CRM implementation and decision-
making at the branch level.

3.6 Population of Study

- Study Population: Customers and employees (including managers) of the commercial bank of
Ethiopia at the Debre Markos Nigus T/Haymanot branch.
- Reason for Selection: Proximity and convenience for data accessibility, ensuring easy access to
respondents for both questionnaire distribution and interviews.

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 3.7 Sampling Techniques and Sample Size Determination
Convenience Sampling:
- Rationale: Chosen due to its ease, cost-effectiveness, and time efficiency, particularly suitable
given the unpredictable availability of respondents during working hours.
- Target Population: Customers and managers of the commercial bank at the Debre Markos Nigus
T/Haymanot branch.
- Sample Size Determination: Use a sample size formula appropriate for convenience sampling,
ensuring it adequately represents the target population while being feasible within the study's
constraints.

3.8 Data collection procedure and data analysis methodology

Data Collection Procedure
1. Identify Target Population:
- Define the population of interest: customers and managers at the Debre Markos Nigus
T/Haymanot, branch of the commercial bank of Ethiopia.
2. Prepare Data Collection Tools:
- Develop tools for data collection: questionnaires for customers and structured interviews for
bank managers.
- Ensure the tools are aligned with research objectives and capable of gathering both qualitative
and quantitative data.
3. Data Collection Process:
- Distribute questionnaires to customers and conduct interviews with bank managers.
- Use note-taking during interviews to capture qualitative insights.
- Ensure data collection adheres to ethical standards and guidelines.
4. Data Collection Approach:
- Employ a deductive approach: start with general questions about CRM and customer loyalty,
then move to specific aspects based on responses.

3.9 Data Analysis and Presentation

1. Method of Data Analysis:
- Utilize descriptive research methods: summarize and present data using descriptive statistics
such as frequency distributions, averages, and percentages.
- For qualitative data from interviews, employ thematic analysis: identify recurring themes,
patterns, and insights from the narratives.

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 - Tabulate quantitative data to facilitate clear presentation and comparison of results.
2. Data Presentation:
- Present quantitative findings in tables and charts to illustrate trends and distributions.
- Interpret qualitative data by transforming narratives into meaningful insights and constructing
interpretive narratives.
- Use illustrative statements and quotes from interviews to support qualitative findings.
3. Ensure Completeness and Accuracy:
- Verify completeness of data collection before proceeding to analysis.
- Cross-check data for accuracy and consistency to ensure reliability of findings.
4.Budget of Time
Timeline over a period of six months:
Month 1: Planning and Preparation
- Week 1-2:
- Finalize research objectives and questions.
- Conduct a comprehensive literature review.
- Week 3:
- Develop and pre-test questionnaires and interview guides.
- Obtain necessary approvals and ethical clearances.
- Week 4:
- Finalize sample size and sampling technique.
- Prepare logistics for data collection (printing questionnaires, scheduling interviews, etc.).\
Month 2: Data Collection
- Week 1-2:
- Distribute questionnaires to selected customers.
- Conduct initial interviews with bank managers.
- Week 3:
- Follow up on questionnaire responses and ensure maximum response rate.
- Continue interviews with bank managers as needed.
- Week 4:
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 - Collect and organize all completed questionnaires and interview notes.
Month 3: Data Entry and Preliminary Analysis
- Week 1-2:
- Enter quantitative data into statistical software (e.g., SPSS, Excel).
- Transcribe qualitative data from interviews.
- Week 3-4:
- Conduct preliminary analysis of quantitative data.
- Identify key themes and patterns in qualitative data.
Month 4: Detailed Data Analysis
- Week 1-2:
- Perform detailed statistical analysis (e.g., frequency distributions, averages).
- Conduct in-depth thematic analysis for qualitative data.
- Week 3-4:
- Cross-verify data for consistency and accuracy.
- Begin drafting the results section of the report.
Month 5: Interpretation and Discussion
- Week 1-2:
- Interpret the results in the context of research objectives and literature review.
- Discuss findings and their implications for CRM and customer loyalty.
- Week 3:
- Draft the discussion section of the report.
- Begin drafting conclusions and recommendations.
- Week 4:
- Review and refine the draft report.
Month 6: Finalization and Submission
- Week 1-2:
- Complete the final draft of the report.
- Include executive summary, references, and appendices.

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- Week 3:
- Review the entire document for coherence and clarity.
- Proofread for grammatical and typographical errors.
- Week 4:
- Submit the final research report.
- Prepare for any presentations or defenses if required.
4.1 Budget of cost
1. Personnel Costs
- Research Assistant (Part-time)
- 6 months’ x 27,500 ETB/month = 165,000 ETB
- Data Entry Personnel (Part-time)
- 2 months’ x 22,000 ETB/month = 44,000 ETB
2. Data Collection Costs
- Printing Questionnaires
- 68 questionnaires x 3 ETB each = 204 ETB
- Incentives for Respondents
- 62 respondent’s x 275 ETB each = 17050 ETB
- Interview Costs (Travel and Refreshments)
- Travel (local): 11,000 ETB
- Refreshments: 2,750 ETB
3. Materials and Supplies
- Stationery (Pens, Notebooks, etc.)
- 2,750 ETB
- Recording Devices (for Interviews)
- 5,500 ETB
4. Data Analysis Software
- SPSS/Excel License
- 16,500 ETB

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5. Miscellaneous Expenses
- Internet and Communication
- 6 months’ x 1,650 ETB/month = 9,900 ETB
- Miscellaneous/Contingency
- 11,000 ETB
6. Documentation and Reporting
- Printing and Binding of Final Report
- 5 copies x 1,100 ETB each = 5,500 ETB
Total Estimated Budget
- Personnel Costs: 209,000 ETB
- Data Collection Costs: 42,350 ETB
- Materials and Supplies: 8,250 ETB
- Data Analysis Software: 16,500 ETB
- Miscellaneous Expenses: 20,900 ETB
- Documentation and Reporting: 5,500 ETB
Total Cost: 291154 ETB
Budget Justification
- Personnel Costs: Essential for managing data collection, entry, and preliminary analysis.
- Data Collection Costs: Necessary for ensuring high response rates and compensating respondents
for their time.
- Materials and Supplies: Needed for smooth operation during data collection and interview
sessions.
- Data Analysis Software: Required for accurate and efficient analysis of quantitative data.
- Miscellaneous Expenses: Cover unexpected costs and ensure effective communication and
internet access.
- Documentation and Reporting: Necessary for producing and distributing the final report.

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 4. REFERENCES
1. Alagöz, S. (2003). “Bilişim Teknolojilerinin Müşteri İlişkileri Yönetimi (CRM) Üzerine Etkileri
ve Bankacılık Sektöründe Bir Uygulama.” Yayınlanmamış Doktora Tezi Selçuk Üniversitesi SBE
İşletme Anabilim Dalı Üretim Yönetimi ve Pazarlama Bilimi Dalı Konya.
2. Antony, Lawrence. (2010). *Customer Relationship Management* (2nd ed.). Himalaya
Publishing House, New Delhi.
3. Bhardwaj, Deepali. (2007). “Relationship Marketing in Context to the IT Industry.” *VISION-
The Journal of Business Perspective*, 11(2), 57-66.
4. Blery, E., & Michalakopoulos, M. (2006). “Customer Relationship Management: A Case Study
of a Greek Bank.” *Journal of Financial Services Marketing*, 11, 116-124.
5. John Wiley and Sons. Long, C. S., Khalafinezhad, R., Ismail, W. K. W., & Rasid, S. Z. A.
(2013). “Impact of CRM Factors on Customer Satisfaction and Loyalty.” *Asian Social Science*,
9(10), 247-253.
6. Juščius, V. (2011). “Relationship Marketing Practice in Lithuanian Logistics Organizations.”
*Baltic Journal of Management*, 6(1), 71-88.
7. LoyaltyLion. (2014). “Five Benefits of Customer Loyalty Program.” Available at:
https://loyaltylion.com/blog/five-benefits-of-a-loyalty-program. Accessed 1 December 2014.
8. Malik, S. A., & Harper, T. W. (2009). “Customer Relationship Management (CRM) in Banking
Sector of Pakistan; Problems and Challenges.” *Business Information Management Association*,
312-320.
9. Marketing Performance. *International Journal of Business and Social Science*, Vol. 2 No. 10.
10. Management Study Guide. (2008). “Different Types of Customers.” Available at:
www.managementstudyguide.com/types-of-customers.htm. Accessed 2008.
11. Naoui, F. B., & Zaiem, I. (2010). “The Impact of Relationship Quality on Client’s Loyalty.”
*International Journal of Pharmaceutical and Healthcare Marketing*, 4(2), 137-156.
12. Ndubisi, N. W. (2005). “Factorial and Discriminant Analyses of the Underpinning of
Relationship Marketing and Customer Satisfaction.” *International Journal of Bank Marketing*,
23(7), 542-557.

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