THE PRACTICE OF CUSTOMER RELATIONSHIP MANAGEMENT AND ITS BENEFIT

ON CUSTOMER LOYALITY

(IN CASE OF AWASH INTERNATIONAL BANK IN MEKELLE CITY)

A research project proposal submitted in partial fulfillment of Requirement

For

The Bachelor of Art Degree in Marketing Management

Prepared by: Jimma Bogale

Student id, CBE/UR/165345/2006

Mekelle University

College of Business and Economics

Department of Marketing Management

February, 2016 mekelle,Tigray

 Mekelle University

College of Business and Economics

Department of Marketing Management

Title: the practice of customer relationship management and its benefit on customer
loyality in case of awash international bank

By: jimma bogale

Approved by:

Advisor Full Name: Signature

Muhammad seid _____________________________

Evaluators Full Name: Signature

________________________________ ____________________________

i
ABSTRACT
This paper or study has conducted on the practice of customer relationship management and its
benefit on customer loyalty in case of Awash international bank Mekelle branch. This study
provides relevant data about the practice of customer relationship management and its benefit
on customer loyalty institution. The major of this study is to assess the practice of customer
relationship management and its benefit on customer loyalty and to identify the importance of
customer relationship management in awash international bank Mekelle branch. The study has
conducted based on both primary and secondary data; more emphasis using primary data. The
primary data is collected by questioners, the secondary data collected from published
documents, website and annual report of company. The sampling method to be used convenience
and judgmental sampling method, while the researcher used different method of data
interpretation table and percentage, finally to conclude the study customers are satisfied with the
bank service and the researcher study recommended the bank to retain its satisfied customers the
bank management must be use modern technologies to satisfied its customer and attract new
customers and also by train workers of the bank to improve their skills and knowledge to handle
the clients and to increase customer satisfaction.

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 ACKNOWLEDGEMENT
Being in a busy schedule, finished my senior paper in time has not been possible without the help
of others. My first and utmost thanks go to GOD, who made me helpful, courageous and keeping
me inspired for all things I have done in my study.

Next I would like to thanks my advisor Mr. Muhammad Seid here for his constructive and timely
advice. Finally, I would like to say thank you to all school and dorm mate students for their
provision of different working materials.

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TABLE CONTENT

Content Page

ABSTRACT.................................................................................................................................................i
ACKNOWLEDGEMENT..............................................................................................................................ii

Chapter One..........................................................................................................................................1
1. INTRODUCTION.......................................................................................................................................1
1.1 BACKGROUND OF THE STUDY...............................................................................................................1
1.2 STATEMENT OF THE PROBLEM..............................................................................................................2
1.3 RESEARCH QUESTION............................................................................................................................2
1.4 RESEARCH OBJECTIVES..........................................................................................................................3
1.4.1 GENERAL OBJECTIVE.......................................................................................................................3
1.4.2 SPECIFIC OBJECTIVE........................................................................................................................3
1.5 SCOP OF THE STUDY..............................................................................................................................3
1.6 SIGNIFICANCE OF THE STUDY................................................................................................................3

Chapter two..........................................................................................................................................4
LITERATURE REVIEW............................................................................................................................4
2. INTRODUCTIONS.................................................................................................................................4
2.1 definition of customer relationship management...................................................................................4
2.2 Building customer value and satisfaction..............................................................................................7
2.3 customer focus on relationship..............................................................................................................8
2.4 Consumer expectation...........................................................................................................................8
2.5 factors affecting customer satisfaction...................................................................................................8
2.6 characteristic of service.........................................................................................................................8
2.7 customer handling procedure.................................................................................................................9
2.8 characteristics of excellent customer relationship management.............................................................9
2.9 Barriers in Customer relationship management.....................................................................................9
2.10 people and customer relationship management..................................................................................10
2.11 Benefit of customer relationship management...................................................................................10
2.12 Customer benefit and loyalty......................................................................................................10
2.13 Customer Relationship Management Practice...................................................................................10

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2.14 Customer Relationship Management process....................................................................................12
Chapter three...........................................................................................................................................16
3. METHODLOGY OF THE STUDY...............................................................................................................16
3.1 RESEARCH DESIGN AND STRATEGIES.................................................................................................16
3.2 SOURCE OF DATA AND DATA COLLECTION TECHNIQUES....................................................................16
3.3 POPULATION OF THE STUDY AND SAMPLE SIZE..................................................................................16
3.4 SAMPLING TECHNIQUE........................................................................................................................16
3.5 DATA ANALYSIS TECHNIQUE................................................................................................................17
CHAPTER FOUR.....................................................................................................................................18
4. DATA ANALYSIS AND PRESENTATION........................................................................................18
Data analysis and interpretation for employees.........................................................................................25
Interview questions for the manager of awash bank..................................................................................30
CHAPTER FIVE.....................................................................................................................................31
4. Summery, conclusion, recommendation............................................................................................31
4.1 Summary............................................................................................................................................31
4.2 conclusions..........................................................................................................................................32
4.3 Recommendation.................................................................................................................................33
REFERENCE............................................................................................................................................34
Appendix I.................................................................................................................................................35

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vi
Chapter One

1. INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Customer relationship management is the process of building and retain profitable customer with
long term relation by delivering superior customer value and satisfaction .It is about managing
customer in order to maximize customer loyalty. It deals with all aspect of acquiring, keeping
and growing customers .In broad sense customer relationship management is widely
implemented strategy for managing company interaction with its customer and it require a long
term plan .The key to building customer relationship is to create superior customer value and
satisfaction. Satisfied customers are more likely to be loyal customers (Kottler & Armstrong,
2006).

The relationship is established based on mutual benefit customer relationship management is

always associated with loyalty and customer satisfaction customer satisfaction occurs because
there needs are met, customer loyalty occurs because their expectation are met. If an organization
truly meets and exceeds customer expectation, the customers would be to the organization. Good
customer relationship management creates customer delight. In turn, delighted customers remain
loyal and favorably to others about the company and its products. Highly satisfied customers are
always assets of the organization; they have less price sensitiveness and generally talk
constructively about the company to outsiders. They would bealso showed their trustworthiness
for a longer period (Kottler & Armstrong, 2006).

In order to develop customer loyalty or better customer relation there should be

 Set relationship management strategy
 Non transaction orientation long term orientation
 Willingness from both organization customer to stay committed to the
relationship
Which is based on mutual benefit and The Company should provide good quality
service to customer with reasonable prices (Ellen Gifford, 2008)

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In this study ,the researcher would be assess Awash International bank interaction with its
customers and implementation of customer relationship management .The researcher would be
try to investigate the practice of customer relationship management and its benefit on its
customer loyalty in case of Awash international bank in mekelle city.

1.2 STATEMENT OF THE PROBLEM

In fact maintaining an effective customer relationship management is a big issue in any
organization. There is no study undertaken on the area of the practice of customer relationship
management on customer loyalty. This is the reason that initiates the researcher to conduct the
research on the topic the practice of customer relationship management and its benefit on
customer loyalty. Any organization whether it is providing or manufacturing companies the key
for their existence of success is their ability to satisfy their customers. The advantage of customer
loyalty has gradually been recognized throughout the developed countries. But in many
companies of under developed countries the customer loyalty is still a critical action for the
operation in providing the extend service delivery (Sharp, 2008).

However some problems may be occurred, this problems might disappoint customers and can be
used as prerequisite to loss of customers to same extent delay during service delivery, movement
of truth, absence of integration by internet technology with other banks for same service
providing and also absence of ATM service in related to the problems of the bank specifically
the Awash international bank branch in found in Mekelle city.

1.3 RESEARCH QUESTION

1. What is the strength and weaknesses of the bank in practicing customer relationship
management?
2. What measure are taken by the bank to handle the customers complain?
3. What are the methods that are used by the bank to measure the satisfaction level of
customer?

2
1.4 RESEARCH OBJECTIVES
1.4.1 GENERAL OBJECTIVE
The general objective of the study is to assess the practice of Customer Relationship
Management and its benefit on customer loyalty in case of Awash international bank in mekelle
city.

1.4.2 SPECIFIC OBJECTIVE

 To identify the strength and weakness of the company in practicing customer relationship
management.
 To identify the strategy used by the bank on customer relationship management
 To assess the performance of the bank in handling customers complain.

To identify methods of measuring level of customer satisfaction used in Awash International

bank Mekelle city.

1.5 SCOP OF THE STUDY

Even if there are many financial institutions in Mekelle due to some constraints like time
and budget this study limited it on Awash Bank on its customer relationship management
practice and its benefit on customer loyalty. This research proposal will use probability sampling
method from that the student researcher will use judgmental sampling techniques

1.6 SIGNIFICANCE OF THE STUDY

The study would be attempt to provide the following significance for Awash International Bank
and other related business sector: The first significance is to identify the main customer oriented
areas that would be address to improve organization performance, to identify the strength and
weakness of the company, It would be help to create awareness about customer relationship
management, Significance to other researcher and the study would be significance for the
researcher to get experience.

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CHAPTER TWO

LITERATURE REVIEW

2. INTRODUCTIONS

2.1 definition of customer relationship management

Different authors define customer relationship management in different time in different way.
Customer relationship management is perhaps the most important concept of modern marketing.
Until recently, customer relationship management has been defined narrowly as a customer data
management activity. By this definition, it involves managing detailed information about
individual customers and carefully managing customer touch points in order to maximize
customer loyalty. More recently, however customer relationship management takes on a boarder
meaning. In this broader sense, customer relationship management is the overall process of
building and maintaining profitable customer relationships by delivering superior customer value
and satisfaction. It deals with all aspects of acquiring, keeping and growing customers (Kotler
and Armstrong, 2006).

Various models and frameworks have been proposed to show how CRM can be effectively
implemented and managed, and to illustrate the process. Many of these stress the need for sound
vision and strategy, followed by proper assessment and setting of business objectives and
processes required, before any consideration of technology They indicated that companies can
minimize their risk of failure by first having a clear vision for their CRM target application,
infrastructure, or transformation and then by understanding and addressing the issues typically
associated with it.

Successful CRM depends on how four key components: strategy; people; technology; and
processes are dealt with observed that when all the four key areas are well addressed, a
higher customer -relationship competence may emerge and that superior customer
relationship capability was achieved when the four work in harmony or as a unit. In other

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words success in one of the key factors may not necessarily enhance effective and efficient
CRM.

CRM implementations usually involve four specific ongoing strategic activities: focusing on key
customers, organizing around, managing knowledge, andincorporating CRM basedtechnology.
In the same vein, hypothesized that CRM is a multidimensional construct consisting of
four broad behavioral components: key customer focus, CRM organization, knowledge
management, and technology-based CRM. (Zeblah, 2004)

They opined that for a business to maximize its long-term performance in such aspects as
customer satisfaction, trust, return on sales, and return on investment, it must build, maintain,
and enhance long-term and mutually beneficial relationships with its target buyers. All business
is based on relationships. The firm only has to make them visible and meaningful for its
customers provided that the customer wants.

CRM is an attempt to modify customer behavior over time and strengthen the bond between the
customer and the company, with the purpose of maximizing the value of the relationship to the
customer for the customer’s benefits and the company’s benefits. CRM could enhance a
company’s ability to achieve the ultimate goal of retaining customers and so gain strategic
advantage over its competitors. CRM allows organizations to distinguish between customers that
are profitable, nearly profitable, and unprofitable and have the potential to be profitable (Bull,
2003).

The customer awareness of organization customer relationships could raise their loyalty toward
the corporation which would in turn increase company income, enhance market share and
achieve other corporate objectives (Bull, 2003)

Customer relationship management is a corporate wide approach to understanding customer

behavior, influencing it through continuous relevant communication and developing long term
relationship to enhance customer loyalty, acquisition, retention and profitability (Sharp, 2006).

Many CRM-oriented activities, such as knowledge management, cannot be optimized without

leveraging the latest technology.CRM technology as one of the organizational resources that
serves as an input into the CRM process and is intended to enhance firms’ ability to productively

5
build and maintain a profit maximizing portfolio of customer relationships. Although the specific
CRM tools individual firms choose to deploy are likely to vary significantly, CRM technology
can be categorized according to the organizational function it is intended to support and by its
functionality.

More specifically, CRM tools are designed to support sales (e.g. opportunity management),
marketing (e.g. Campaign management), and service and support tasks (e.g. case management),
and serve to either enable the coordination of tasks within a process or across functions,
automate routine tasks, provide detailed insight regarding organizational and individual
employee performance, or standardize common tasks and processes (Zeblah,2005)

No wonder, it is said that most CRM applications take great advantage of technology
innovations, with their ability to collect and analyze data on customer patterns, develop
prediction models, respond with timely and effective customized communications, and
efficiently deliver personalized value offerings to individual customers. They noted that
the expansion of sophisticated information management tools, such as database marketing,
data warehousing, data mining, and push technology keep firms in a continuous search for
the latest technology that could be built-in into their CRM systems. With the right CRM
technology, firms are able to collect, analyze, and distribute information firm-wide.

The appropriate CRM technology for data collection and distribution, firms was in the position
to enhance Prospecting, improve communication and sales presentations, and able to customize
their product configurations. Another advantage of CRM technology is that it aids cross
referencing of customers of the various sections of a firm to identify trends of customer
buying behavior and this is a potential source of more sales opportunities.

They identified enhanced customer satisfaction, higher customer retention, and more
profitable long-term customer relationships as the main expected outcomes of CRM-based
technology.

In summary, successful CRM Implementations depends on combining the four aforementioned

dimensions; focusing on key customers, organizing around CRM, managing knowledge, and
incorporating CRM based technology into an effective overall CRM strategy. They opined

6
that deficiencies in any of these areas can render the firm‘s CRM endeavors in effective. (Zablah,
2005)

2.2 Building customer value and satisfaction

Customer perceived value is the difference between the prospective customer’s evaluation of all
the benefits and all costs of an offering and the perceived alternative in order to loyal customer.
Total customer value is perceived monetary value of the bundle of economic, functional and
psychological benefit customers expect from a company.

Total customer cost is the bundle of costs customers expects to incur in evaluating, obtaining,
using and disposing of the given market offering. Include monetary, time energy and etc (Philip
Kotler, 2002).

Customer satisfaction

Generally, satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product perceived performance in relation to his or her expectations. If the
performance fall short expectations, the customer is dissatisfied. If the performance matches the
expectation, the customer is satisfied. If the performance exceeds expectation, the customer is
highly satisfied (Kotler and Keller, 2006).

Satisfaction is one of the several antecedents of loyalty. Customer satisfaction is the ability to
bridge the gap between customer expectations and product/service delivery (Safety, 2011). It is
achieved when the customer expectations about the performance of service or product being
consumed are meeting or exceed. The strong focus on customer satisfaction is based on the
implicit assumption that there is strong positive relationship between customer satisfaction and
loyalty.

Failure to meet customer needs and expectations is considered as a major Cause of customers
exit from organizations because it is assumed to result in dissatisfaction. Therefore organizations
must be customer focus/driven to gain intrinsic knowledge of the customers’ needs and
expectations. (Kottler and Killer 2006)

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2.3 customer focus on relationship
Ellen Gifford is mentioning the three steps to build customer relationship. The first step is
determining mutually satisfying goals between organization and its customer. The second steps
are established and maintain rapport and produce positive feelings in the organization and
customer (Ellen Gifford, 2002).

2.4 Consumer expectation

According to (kottler, 2006) consumer service expectation rises from many sources. Such as past
experiences word of mouth and advertising. In general customer compares the perceived service
with the expected service. If the perceived service falls

Below the expect service. Consumers are disappointed (dissatisfied) if the perceived service
meet or exceed their expectation they are appropriate to use the provided again. Successful
companies add benefit to their offering that not only satisfy customers but surprise and delight
them. Delighting customer is matter of exceeding expectation (Kottler, 2006).

2.5 factors affecting customer satisfaction

Customer satisfaction is the ultimate and the final opinion of customers about the vendor and its
product. The following factors affecting customer satisfaction: customer service, complaint
handling, vendor behavior and vendor’s product and service performance, delay service giving
system and so on (kottler, 2002).

2.6 characteristic of service

Service have four distinctive characteristics that greatly affect the design of marketing program
this are intangibility, inseparability, variability, perish ability.

Intangibility: Service is intangible means cannot be seen, tested, heard or smell before they are
purchased.

Inseparability: Service are typically produced and consumed simultaneously. This not true of
physical good which are manufactured put in to inventory distribute through reseller and
consumed later.

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Variability: Because service depends on who provides than and when and where they are highly
variable.

Perishability: Perishability service cannot be stored; perish ability is not a problem when
demand is steady; when demand fluctuates service firm has a problem (Kottler and Keller, 2006).

2.7 customer handling procedure

Customers must feel an immediate sense that the company truth cares. (Kottler, 2006) states the
following procedures that can help us to recover customer good will.

1. Set up 7-days, 24 hour toll-free “hot line” (by phone, fax, or e-mail) to receive an act on
customer complaints.
2. Contact the complying as quickly as possible. The lower the company is to respond the
more dissatisfaction may grow and lead negative word of mouth.
3. Accept responsibility for the customer disappointment doesn’t blame the customer.

2.8 characteristics of excellent customer relationship management

The according to (Ellen Gifford) the following characteristics are associated with delivering of
excellent customer relationship management reliability, responsiveness, accessibility, safety,
courtesy communication, recognizing the customer and competences are some of the
characteristic of excellent customer relationship management (Ellen Gifford, 2002).

2.9 Barriers in Customer relationship management

The marketers need to overcome some barriers so as to be successful implementer of CRM such
as information barriers, poor marketing practice, inadequate , un integrated information system,
inability to access and understand customer needs and also lack of marketing tools to manage
customer relationship ( (Antony Lawrence, 2010).

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2.10 people and customer relationship management
As with any other business processes of your people have huge impact on success of the
customer relationship management process. Successful and effective customer relationship
management people tend to display the following key characteristics; positive attitude, people
orientation organizational skill, analytical skill, customer focus and understand of the link
between customer relationship management and profitability. (Kottler,2006)

2.11 Benefit of customer relationship management

There are significant business benefits which accrue from an effective, integrated customer
relationship management approach. This include reduce costs because the right things are being
done, increase customer satisfaction because they are getting exactly what they want insure that
the focus of the organization is external, growth in number of customer, maximization of
opportunity and long term profitability (Ellen Gifford 2002).

2.12 Customer benefit and loyalty

Business leaders are making concerted efforts at driving customer loyalty through various loyalty
schemes; customer relationship management is also regarded potent weapon to drive loyalty. The
concept of loyalty has been interpreted in several ways such as customer repeat buying behavior,
customer referrals to friends, customers’ emotional commitment to the relationship, high
customer satisfaction, and customer trust based on high value and customer spending more
overtime (sharp 2002).

2.13 Customer Relationship Management Practice

The identity of CRM has become intangible (you can feel it but you can‘t see it). The
problem is worsening off by the volume of quite distinct definitions and perspectives of
CRM in the books of marketing management. The definitions of CRM range from very
narrow Interpretations to very broad ones with no two being the same. They observed that the
lack of consensus on the meaning of CRM not only impedes academic discourse on the subject,
but also adds to business practitioner skepticism and indecisiveness in establishing CRM

10
systems. Consequently, generally accepted CRM process and practices are yet to be established.
(Kottler 2002)

However, many scholars have made great efforts to describe the CRM practices of firms and had
interesting findings.found that customers select services base on CRM practices of the service
provider. They identified amenities, comfort, timely services, supportive staff and trust as the
most valuable CRM practices in the transport business .They observed that technology-based
CRM is prominent in service firms.

Observed that quality of service is one practice of CRM that customers give much attention.
Identified service delivery, reliability , assurance and responsiveness as factors that
influence customer’s perception of service quality. They found that customers give high
ranks to value preposition and low ranks to personalization from a list of seven variables
related to customer satisfaction (value preposition, recognition, customer orientation,
reliability, relationship oriented, credibility, personalization and gestures). (Kottler 2006)

(Bennett, 1996) identified openness, genuine concern for delivery of high quality services,
responsiveness to customer suggestions, fair dealings and willingness to sacrifice short-term
advantage for long-term gains as the characteristics of CRM strategy and practices.

CRM as systematic process which encompasses managing customer relationship initiatives

(maintenance, and termination across all customer contact points) in order to maximize the
value of the relationship portfolio.

Retaining customers and achieving profitability largely depends on practices such as building
reciprocal relationships founded on safeguarding and affirming customer security, fairness and
self esteem. It is also observed that maintaining lifelong relationships has its roots in values and
practices such as mutual exchange, fulfillment of promises, ethical business practices, effective
communication and emotional bonding.

Successful implementation of CRM programs require a strategic approach in carrying out

activities such as developing customer centric process, selecting and implementing
technology solutions, employee empowerment, customer information and knowledge

11
generation capabilities to differentiate them, and the ability to learn from the best practices
(Bennett 2000)

2.14 Customer Relationship Management process

Since the CRM process requires a vast amount of customer information, privacy issues
remain an important and sensitive issue with firms and customers alike. In order to
customize products and services for individual customers, personal information is collected and
stored in CRM databases. There is a fine line, however, between collecting and capitalizing
on information and stepping over customer privacy boundaries. According to Forrester
Research, individuals have reported feelings of irritation and violation and some have
admitted that they are fearful about internet usage tracking (Philip Kottler 2002).

When firms violate customer privacy by sending unwanted e-mails and mailings or by
sharing private information, customers can backlash and boycott the firms. Some privacy
issues can be resolved by an “opt-in” option in which the customer must explicitly give consent
to personal data collection or by an “opt-out” option in which customers must forbid the
use of data.

As more firms adopt and develop CRM processes, privacy issues should be addressed in order to
ensure that consumers feel comfortable and confident with the firms and with the data those
firms are collecting and using.Although there are many advocates for the adoption of customer
relationship management, many skeptics criticize the practice for a number of reasons. The
initial criticism attacks the fact that no top marketers, or executives of the same firm for
that matter, can agree on a single definition of CRM; this lack of consistency makes it
difficult for an organization to create a united front regarding CRM objectives and programs

This lack of definition may not be critical, however, if the firms are able to successfully
implement their own individual working systems. Other critics believe that CRM is failing to
meet customer needs; CRM practitioners are too focused on managing the customer and
not enough on satisfying the customer. Finally, marketing executives often view
technology as the most important part of CRM, but many see technology as the only
requirement for CRM implementation. Technology does not build relationships, and critics

12
argue that the process of CRM puts too much emphasis on databases and not enough on
personal interactions (Philip Kottler 2006).

The concept of process approach of CRM maintains that relationships evolve over distinct
phases, which require different levels of interactions and actions between customers and
organizations. The process perspective is noted as the only perspective of CRM that
acknowledge the lifecycle aspect of the relationship, and has been examined at two levels –
one is managing interactions with the customer, the other at a broader macro level
incorporating a wider range of activities. One of the notable contributions in this respect is
the CRM process framework model.they designed a four-stage process frame work for the
formation, maintenance and promotion of effective and efficient CRM. The four processes of the
model are designated as: Customer relationship formation process, relationship management
and governance process, relationship performance and evaluation process, CRM and
evaluation enhancement process. The model portrays the above processes as sequential and less
interactive.

However it must be noted that the processes of the model should be interactive and circular in
design rather than sequential. The five important cross functional processes of CRM and they
include strategy development, value creation, multichannel integration, information
management, and performance assessment.

It is often not clear to companies that all embracing customer focused business process re-
engineering is necessary when implementing CRM. They add that CRM is a “continuous
effort” which should begin with a customer centric view taking customer feedback into
consideration and thus making sure marketing and other business processes are integrated
and organized in a manner that best serves the customers according to their individual needs and
values. Also recognize the need for firms to become more customers centric and that this could
be achieved through the linkage between CRM and business process re-engineering.

(Philip Kottler,2006) states that implementing CRM means changes throughout the whole
organization which is in accordance with integrating all business processes their view also
supports the idea that CRM requires everyone within the organization to be committed to

13
building strong customer relationships This, again, means changes in the way firms are
organized

According to Payne, (2005) the organizational structural designs best suited for building
strong customer relationships are the ones based on inter-functional cooperation and
integration. Highlights the importance of a cross functional approach to customer
relationships, reminding.(Philip Kottler 2006)

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CHAPTER THREE

3. METHODLOGY OF THE STUDY

3.1 RESEARCH DESIGN AND STRATEGIES

In this study, the researcher would be used descriptive methods, because the nature of the subject
is to identify or describe the phenomena and the nature of the subject is suitable for descriptive
manner.

3.2 SOURCE OF DATA AND DATA COLLECTION TECHNIQUES

This study of research would be used both primary and secondary source of data. The primary
data are questionnaires and interview. The primary data would be collected by questionnaires
from customers and employees and interview from the manager. The secondary data would be
gather from articles wrote by authors, Journals, and published books that are related with the
research proposal and case study. All this will help us to examine and assess perception level
based up on the data that collected.

3.3 POPULATION OF THE STUDY AND SAMPLE SIZE

The total population of Awash international bank customer is unknown so that the researcher
would be used non probability sampling technique the researcher used convenience sampling
technique for customers and judgmental sampling technique for employees. Therefore the
researcher used as a sample 30 customers of the bank and 15 employees from the bank.

3.4 SAMPLING TECHNIQUE

To reach respondent, the student researcher would be use non probability sampling. From non-
probability sampling the student researcher would be select judgmental sampling and
convenience sampling technique, because it serves as the basic for sampling technique, easy to
practice, easy to use and it’s cost effective. But probability sampling technique it’s hard to
practice, expensive and complex in nature because the population is unknown. The total
population of Awash international bank customer is unknown so that the researcher would be
used non probability sampling technique

16
so the researcher takes 30 customers of the bank as a sample. Also the student researcher would
be select 15 employees as a sample. The researcher would be used judgmental sampling
technique in order to select experience employees so that the researchers would be get accurate
information and data from the selected members.

3.5 DATA ANALYSIS TECHNIQUE

After selecting both primary and secondary source of data the next step is data analysis. The data
would be collect from the employees are more qualitative in nature .The researcher would be use
descriptive technique of data analysis and would be analyze the data through simple statistical
tools like tabulation and percentage in order to analyze the result of collected data clearly and
efficiently.

17
CHAPTER FOUR

4. DATA ANALYSIS AND PRESENTATION

This chapter analyses and gives presentation on the data which is collected through questionnaire
from customers and employees.30 questionnaires were distributed for customers who are
selected as respondent and 15 questionnaires for employees. So the research is analyzed the
collected data by using percentage and through tabulation. Finally, the percentage is interpreted.

Part 1: This section described the data which is gathered from customers

First demographic characteristic of the respondents, this section is described about demographic
character such us sex, age, education and occupation.

Sex distribution is one of the demographic factor as shown below in the table 18 (60%) are males
whereas 12 (40%) of respondent are female. this result shows that the majority of respondents
are male.

Age also other demographic variables that indicate the proportion of the people by dividing in to
different section as youth, adult and old. As it indicate below table out of total respondent 6
(20%) of respondents lies between the age of 18-25, 11(36.67%) of the respondents lies between
26 -35, 7(23.3%) of the respondents were between 31-35, 3 (10%) of the respondent were
between 36 -40, 2 (6.67%) were between 41-45 and where as the remaining 1(3.3%) above 46
years of age. This indicates that the majority of respondent between 26 -35 which are an adult
age.

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Table 4.1 characteristic of respondent

Item Category No. of respondents (%)

1. Sex Male 18 60%

Female 12 40%
Total 30 100%
3. Age 18-25 6 20%
26-30 11 36.66%
31-35 7 23.33%
36-40 3 10%
41-45 2 6.67%
Above 46 1 3.33%
Total 30 100%
3.Education Primary school 3 10%
Secondary school 5 16.66%
Certificate 3 10%
Diploma 7 23.33%
BA degree 10 33.33%
Other 2 6.66%
Total 30 100%
4.Occupation Student 7 23.33%
Teacher 7 23.33%
Merchant 9 30%
Other 7 23.3%
Total 30 100%
Source: own survey 2008

Education is a variable that use to identify the respondents as primary school, secondary school,
certificate, diploma, BA degree and other. As it shown from the above table 3(10%)of the
respondent were primary school, 5(16.66%) of the respondent are secondary school, 3 (10%) of
the respondent holds certificate, 7 (23.33%) of the respondent were have diploma, 10 (33.33%)
of the respondent hold BA degree and the remaining 2(6.66%) of the respondents were others
respectively .this result shown that the majority of respondent was having BA degree. Therefore
the researcher concluded that majority of respondent have higher education.

In terms of occupation, which are also demographic characteristicthe researcher used to identify
occupation a student, teacher, merchant and other. As indicated on the above table 7 (23.33%) of

19
the respondent were students, 7(23.33%) of the respondent were teacher, 7(23.33%) of the
respondent were merchant, 9(30%)and 7(23.33%) of the respondentare others. this result shows
the majority of the respondent were merchants.

Table 4.2: weakness of the bank

Item Category No. %

17. What is the Backward 6 20%
weakness of management action
awash bank? Poor quality of 10 3.33%
service
Lack of modern 13 43.33%
technological
advancement
Other 1 3.33%

Total 30 100%
Source: own survey 2008

The above table show that from total respondents 6 (20%) said that the weakness of the bank is
the backward management action,10(33.33%) are said poor quality of service is the weakness of
the bank, 13 (43.33%) are said lack of modern technology and the remaining 1 (3.33%) are said
there are other weakness in the bank.

According to customers respondents responded that the bank regarding customer treatment
generally the bank they treat customers like a king and they give fast service and good hospitality
to customers.

20
Table 4.3 customers’ relation with the bank

Item Category No. %

21. Are you customer of Yes 25 83.33%
awash bank?
No 5 16.7%

Total 30 100%
Source: own survey2008

The above table indicate that out of the total respondent 25 (83.33%) are the customer of the
bank and the remaining 5 (16.7%) are not customers.

Table 4.4 customers’ means to complain

Item Category No. %

23. Does the bank Yes 20 66.67%
provide a means to
complain? No 10 33.33%

Total 30 100%
Source: own survey 2008

The above table show that from total respondents of 20 (66.67%) of respondents agreed and the
remaining 10(33.33%) of the respondent disagree with that the bank provide the means to
complains.

Therefore the majority of the respondent agreed up on the opportunity that the Bank gives them
to suggest on the service. So the researcher concluded that, although most of customer were have
providing a means to complain.

This helps the bank to get the suggestion and comment from the client. This would help to
improve and maintain the service delivery system. On the above table customers were

21
haveanopportunity to complain or comment about service system of the bank. So the next table
shows which way clients provide there comment or complain to the bank.

Table 4.5 Methods to provide comment

Item Category No. %

25. Which method do
you use to provide Suggestion box 8 26.33%
comment for
awash bank? Telephone 6 20%
E-mail 6 20%
Direct contact with the 10 33.33%
representative

Total 30 100%
Source: own survey 2008

Table3.1.5 shows that, out of total respondent 8(26.33%) of respondent use suggestion box,
6(20%) of respondent were use telephone, 6(20%) use E-mail and 10 (33.33%) of respondent
respond direct contact with the representative.

Therefore the researcher understand that direct contact with representative is most widely used
method that the majority of clients to provide different comment to the bank.

Therefore the researchers concluded that most of client use direct contact with the representative
followed by suggestion boxes. But now a day technology is well developed so the bank
management should also provide other means like telephone and e-mail. There is a telephone
here but most of the clients not use but the bank manager must tell the clients they can also use
other methods to provide comment. It increases the customers’ confidence and loyalty.

22
Table 4.6 complain handling of the bank

Item Category No. Percent %

29. Do the bank Yes 26 86.6%
workers handle
customer
complaints No 4 13.33%

properly?

Total 30 100%
Source: own survey 2008

The above table indicate out of the total respondent 26(86.6%) are agreed that the employee
handle customer complaints properly and 4(13.33%) of the respondent are disagree that there is a
problem shown by the employs to handle customer complaint in the bank. The researcher
understood most of the respondents agree by the workers in handling the complaints of the
clients (customer).

Table 4.7 customer satisfaction on the bank

Item Category No. %

31. Are you satisfied Yes 26 86.6%
with the
performance of No 4 13.33%
awash bank
service?
Total 30 100%
Source: own survey 2008

The above table shows that, from the total number of respondent of 26(86.6%) of them agreed
whereas 4(13.33%) of the respondent were disagree. This result shows that, majority of the
respondent agreed the researcher understood that majority of the respondent were satisfied with
the performance of the bank. The researcher concluded that the majority of the clients are
satisfied. But there are some clients which are not satisfied with the performance of the bank.

23
Table 3.1.8 relationship with the bank

Item. Category No. %

33. How often do you Always 11 36.66%

use the bank? Irregularly 9 30%
Sometimes 10 33.33%
Often - 0%

Total 30 100%
Source: own survey 2008

The above table indicate that from the total respondent 11 (36.66%) are use the bank always, 9
(30%) are customers uses regularly, 10 (33.33%) are use sometimes. This shows that most of the
customer in the bank use the bank always followed by sometimes.

Table 4.9 customers’ loyalty

Item Category No. %

37. Do you think you are Yes 19 63.33%
loyal customer?
No 11 36.66%

Total 30 100%
Source: own survey 2008

From the above table, out of the total respondent 19(63.33%) of respondent respond yes while
the rest 11(36.66%) said no. It shows that the majority of them were loyal customer of the bank.
Therefore the researcher understood the most of the respondent were loyal customer of the bank.
And the bank management should create new strategies in order to make all of the respondents
loyal to the bank.

24
Table 4.10 Customers’ relation with the employee

Item Category No. %

39. Do you think the Yes 25 83.33%
awash bank
employees are
No 5 16.66%
willing to help the
customer?
Total 30 100%
Source: own survey 2008

The above table indicate out of the total respondent 25(83.33%) are agreed and 5(16.66%) of the
respondent are disagree that there is a problem shown by the employs. The researcher understood
most of the respondents disagree by the workers in handling the clients and willing to help.

Data analysis and interpretation for employees

Table 4.11 relationship with the bank

Item Category No. %

1. How long have you Less than one year 2 13.33%
been working in this For the last two year 8 53.33%
job? More than two year 5 33.33%

Total 15 100%

Source: own survey 2008

As indicates in the above table, 2(13.33%) of the respondent are less than one year, 8(53.33%) of
respondents are worked for the last two years finally 5(33.33%) of the respondents worked above
two years.

So the researcher conclude that the greater number of employees are worked for the last two
years this indicated the majority of employees are experienced that is help the bank to provide
better service to the clients.

25
According to the respondent respond that majority of the employes are accountant and customer
service officer

Table 4.12 employee’s satisfaction

Item Category No. %

4. Are you satisfied Yes 13 86.66%
with the duties you No - 0%
are assigned by the
Neither 2 13.33%
bank?
Total 15 100%
Source: own survey 2008

As indicated on the above table 12 (80%) of respondent were satisfied with their duties they are
assigned by the bank and the remaining 1(6.66%) of employee respondent were not satisfied by
duties assigned by the bank. This respondent were not specified his reason why. Thus the
researcher understood that the majority of the employees are satisfied with their duties which are
assigned by the bank. There for that 1(6.66%) of employee can affect the whole system.

There for the researcher concluded that most of the employees are satisfied with the working
environment.

13(86.66%) of the bank employees are satisfied with the duties assigned by the bank most of the
employees are satisfied because of they were satisfied by the salary given by the bank

Table 4.13 working environment

Item Category No. %

5. Do you believe the Yes 15 100%
working environment
of the bank is
No 0 0%
conductive for
providing quality
service to client?
Total 15 100%

26
Source: own survey 2008

From the above table, out of total respondent 15(100%) respondent said Yes, while the left
0(0%) said No, for that the working environment of the bank is conductive for providing quality
service.

Table 4.14 customer suggestion

Item Category No. %

4. Have you ever seen Yes 13 86%
customer’s suggestion in No 2 13.33%
your bank service?
Total 15 100%
Source: own survey 2008

As the table indicate that from the total of 15 respondents 13 (86%) are replied yes and the rest 2
(13.33%) are replied no for the customer suggestion observed by the bank employees. From this
the researcher understands that there is customer suggestion in the bank performance and
services.

Table 4.15 Weakness in providing service

Item Category No. %

5. Do you think the weakness in Yes 5 33.33%
the bank service providing No 10 66.66%
system?
Total 15 100%
Source: own survey 2008

The above table indicates that 5(33.33%) of the respondent respond yes were 10(66.66%) of
respondent no this result show the majority of respondent not seen any weakness.

According to the respondents were respond that the employees mentioned some weakness of the
bank like failed to deliver better service, lack of technological equipment.

27
Table 4.16 weakness in the bank

Item Category No. %

7. if your answer is Failed to deliver better 2 20%
‘’yes’’ for question service
number ‘’9’’ Lack of knowledge of 1 10%
mention some of the employees
weakness from the Lack of technological 7 70%
choice equipments
Other - 0%

Total 10 100%
Source: own survey 2008

The table shows that from the total respondents who replied yes for the above question, 2 (20%),
1 (10%), 7 (70%), are said failed to deliver better service, lack of employees knowledge and lack
of technological equipments are weakness of the bank respectively in delivering quality service.

Table 4.17 effectiveness of customer handling

Item Category No. %

11. Is the bank effective in Yes 10 66.66%
customer handling?
No 5 33.33%

Total 15 100%
Source: own survey 2008

As indicated on the above table 10(66.66%) respondent respond yes in handling its customer and
the rest 5(33.33%) respondents respond on therefore the majority of respondent respond yes due
to this result the researcher conclude the bank is effective handling its customer.

Table 4.18 determinant factors

Item Category No. %

28
 8. what is the determinant Delivering quality 5 33.33%
factor that enable bank to service
retain existing customer Fast service 5 33.33%
Hospitality 5 33.33%
Other - 0%
Total 15 100%
Source: own survey 2008

The other thing for the question that is based on their experience in the bank what is the
determinant factor that enables banks to retain existing customer 5(33.33%), 5(33.33%),
5(33.335) deliver quality service, fast service and hospitality respectively. From this the
researcher understands that quality service, fast service and hospitality are the determinant factor
that enables the bank to retain customers.

Table 4.19 reasons for losing customers

No Item No. %
9. What is the reason for Lack of modern 8 53.33%
loosing customer? technology
Failed to deliver good 4 26.66%
service
Un organized 2 13.33%
compliant handling
Other 1 6.66%

Total 15 100%
Source: own survey 2008

For the question that is based on your experience in the bank industry what is the reason for
loosing customer the respondent respond that 8 (53.33%) are because of lack of modern
technology, 4 (26.66%) Because of poor service delivery and using of old bank technology
2(13.33%) say that because unorganized compliant handling system and 1 (6.66%) are other
reasons for loosing customer. Based on this most of the reason to loss customer is lack of modern
technology.

29
Interview questions for the manager of awash bank

1. What measures the bank use to make customer loyal?

30
 The bank manager said that ‘loyalty measured in our bank by several ways
such as customer repeat behavior, customers referrals to friends and to
measure our customer to make customer loyal by giving high customer
satisfaction and also by giving better quality service according to other banks
and by giving good hospitality.’

2. How to handle its customer complain?

As the bank manager said that ‘first complaints leads to our bank like winning
opportunity for our customers and we handle our customers complain or
suggestion by different ways like by asking feedback from customers about
the service giving by the bank and also by giving suggestion box and by
telling directly to the representatives
3. How the bank measures its customer’s satisfaction?
As the manager said ‘we measure our customer satisfaction by various ways
first satisfied customer are loyal customers of the bank and also by repeating
using of the bank service and by asking our customers about service whether
they are satisfied or not satisfied the bank service and so on’

CHAPTER FIVE

31
4. Summary, conclusion, recommendation

4.1 Summary

The study is focused on the customer relationship management in Awash

international bank branch of Mekelle city. Therefore the major finding summaries are
summarized as follows:
 Regarding the sex distribution 18(60%) of the respondent were males considering
the age variable majority that means 11(36.66%) of respondents were in adult aged,
In terms of occupation 9(30%) of respondents were merchants.
 The majority of 14(56%) of the respondents were usual customer of the bank. The
frequency of using bank service is regular.
 That means 14(56%) of respondents were used bank service regular. And also
26(86.6%) of respondents were satisfied by the bank service.
 According to weakness of the bank 13(43.33%) of respondent they see lack of
modern technological advancement.
 According to customer complain 20(66.67%) of respondents have a means to
provide complain or comment to the bank.
 Those majority of 10(33.33%) of customer are forward their Complain or comment
direct contact with the representative.
 8(53.33%) of employs are worked for the last two years in the bank and also 9(60%)
respondents are believe the working environment of the bank is conductive for
providing quality service to client.
 In terms of customer satisfaction 26(86.6%) of respondents customers are satisfied
by the service provided by the bank and also 19(63.33%) of respondents are loyal
customers and also 11(36.66%) of respondents are not loyal
 This unloyalty becomes from customer sometimes seen problem on the employees
on handling and willingness to help the customer it shows that 5(16.66%) of
respondent says sometimes there is a problem seen on the employees. Here there is
also unsatisfied customer 4(13.33%).
 The majority of employee are worked for the last two years 8(53.33%) of them are
experienced and they are satisfied with duties assigned by the bank indicates
12(80%) of employees says Yes. And 3(20%) is not satisfied with his/her duties.
32
 They also believe the working environment is conducive. Most of the employee have
not seen complain raised by the bank but 2(13.33%) employees were seen this
complain.

4.2 conclusions
Based on the analyze data in chapter three the following finding were generalized by the
researcher as follows:-

 Regarding the sex distribution respondent were male’s these implies the majority of the
respondent were male. Considering the age variable of the respondent were in adult aged.
 From the level of education, the respondents having BA degree. That means majority of
the respondents were having the BA degree.
 Interims of occupation, most of respondents were merchants and this is vital to get
different source of information, other respondents were the usual customer of the bank.
Because the bank gives faster service to the customer rather than other bank, the bank
follow the principle of send know and receive know, fast money transfer for the customer
except some problem regarding customer relationship management.
 Regarding the performance of the bank we conclude that regarding data analysis for
employee’s response show that for the last two years employees working in the bank.
 Here also some of the respondents are not the loyal customer of the bank. It shows most
of the employee have sometimes a problem on handling there customer and some of the
customer are not satisfied with the performance of the bank this is a problem for the bank
in long run. And they need fast service delivery.
 Employee were satisfied with their duties, they are assignee by the bank and also the
employs respond show that the working environment of the bank is conducive for
providing quality service to clients.
 Based on the customer complain out of total respondent of employs responds “NO”. this
indicates that majority of employs have not seen any complain raised by customer
 Regarding customer retention employs respond that the bank management formulates
strategies for retaining the existing clients and employs, some of the employs said that the
bank management retaining its customers by giving fast service, good hospitality and by

33
 delivering good service quality retaining strategies, the remaining said that is not
formulate customer retention strategies.

In this paper the researcher attempted to study customer relationship management and its benefit
on customer loyalty on the awash international bank. In doing so, primary data obtained through
Questionnaires distributed to customers of the bank and employees of the bank. To conclude the
study, customers are satisfied with the bank service.

4.3 Recommendation
On the basis of the data collected and analyzed, the researcher forwards the forwards the
following recommendations to overcome the problem related to subject matter of the study
Based on the conclusion of the study the following recommendations are forwarded:-

 The bank should keep customer satisfaction by providing better service with good
performance. In order to make the customer they should meet their expectation
 The bank should develop mechanism to motivate and initiate those customers to use
the service of the bank and make the best customer relationship management.
 Even though direct contact with representative is the most widely use to provide
different comment or suggestion for the bank. The bank should also provide another
method such as telephone suggestion box.
 The bank management must train the workers in order to handle the clients. Unless
the unsatisfied customer might shift to the other bank communicate bad word of
mouth.
 To improve employs skill and knowledge the bank should give training and
development, satisfying employee is better for the bank because satisfied employee
increase the customer satisfaction in the service providing system.
 This service organization should accept the customer complains. This complains is
important for the bank to solve the delivery of problem or weakness part and to long
run relationship with customer and to satisfy the customer need and want. The
complaint should through suggestion box, telephone, face to face contact.
 The bank management must use modern technology to satisfied its customers and
attract new customers.
 To address to all customers the bank must be expand their branches

34
  Generally the researcher study recommended this, The bank should accept the
customers complain and by giving quickly response to solve their complain and the
bank should keep customers satisfaction by providing better service with good
performance and must be train employes of the bank to improve their skills and also
use modern technology to satisfy its customers and attract new customers.

REFERENCE
1, Antony Lawrence (2010), customer relationship management 2 nd edition, Himaly publishing
house New Delhi

2, Bull, customer relationship management of service growing interesting emerging perspective

3, Armstrong G and Kottler, (2006).customer relationship management, London

4, Bennett, (2000).customer relationship management, London

5, Ellen Gifford (2002) customer relationship management

6, Gary Armstrong and Philip Kottler (2006) principle of marketing, 11 th edition prentice hall of
India pvt.ltd. New Delhi

7, Philip Kottler and Kevin Killer (2002 and 2006) marketing management 12th edition

8, Sharp (2002) customer relationship management, United Kingdom London

9, Zeblah, (2004) customer relationship management

35
 Appendix I
Mekelle UNVERSITY
College OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT

Questionnaire for employee

Dear respondents:
I am a marketing management under graduating students in Mekelle University this questioner is
prepared to awash international bank customers in order to gather relevant data for the purpose of
assessing the practice of customer relationship management and its benefit on customer loyality and
these data would be used only for academic purpose which help us to prepare senior essay for
graduation.

Thank you in advance for your cooperation!

Note that: - No need of write your name

Please put a “√ “mark in the box on your answer.

1. How long have you been working in bank job?

A. less than one year B. for the last two years
B. more than two years
2. What is your responsibility in the bank?

______________________________
3. Are you satisfied with the duties you are assigned by the bank?
A. Yes B. No C. neither
4. If your answer is “No” for questionnaire number “3” please write the reason?

__________________

36
5. If your answer is “yes” for questionnaire number “3” please write the reason?

__________________________________________________________________________
________________________________________________________________________
6. Do you believe the working environment of the bank is conducive for providing quality
service to clients?
A. Yes B. No
7. If your answer for question number “6” is yes please write because of what?

____________________________________________________________
8. Have you ever seen customer’s suggestion in your bank service?
A. Yes B. No
9. Do you think any weakness in the Bank service providing system?
A. Yes B. No
10. If your answer is “YES” for question number “9” mention some of the weakness?
A. Failed to deliver better service
B. Lack of knowledge employees
C. Lack of technological equipments
D. Other
.

11. Is the bank effective in customer handling?

A. Yes B. No
12. What is the determinant factor that enables bank to retain existing customer?
A. Delivering quality service
B. Fast service
C. Hospitality
D. Others_______________________________________________________________
______________________________________________________________
13. What is reason for loosing customer?
A. Lack of modern technology

37
 B. Failed to deliver good service
C. Un organized complaint handling
D. Others__________________________________________________________________
_______________________________________________________________________
14. If you have additional comment regarding to handling of customer compliant/customer
service?

______________________________________________________

Appendix 2

Mekelle University

College of business and economics

Department of marketing management

Questioner for Awash bank customers

Dear respondents I am a marketing management under graduating students in Mekelle University

this questioner is prepared to awash international bank customers in order to gather relevant data for
the purpose of assessing the practice of customer relationship management and its benefit on
customer loyality and these data would be used only for academic purpose which help us to prepare
senior essay for graduation.

Thank you in advance for your cooperation!

 Don’t write your name.

 Just mark () sign or write your answer on the provided space.

Part one: Demographic characteristics

1. Sex : Male Female

2. Age:18-25 26-30 31-35 36-40 k 41- 45 Above 45

3. Level of education

38
Primary school completed Secondary school Certificate Diploma
above BA degree other

4. Occupation,
Student teacher merchant other

Part Two: questions related to the strength and weakness of thebank

5. What is the weakness of the Awash bank?

A. backward management actions
B. poor quality service
C. lack of modern technological advancement
D.other_______________________________________________________________________
__________________________________________________________________

6. What is the strength of Awash bank regarding customer treatment?

______________________________________________________________________________
________________________________________________________________________
7. Are you usual customer of Awash bank?
Yes No

Part three: questions related to measure customer complain

8. Does the bank provide you a means to complain?

Yes No

9. Which method do you use to provide comment for Awash bank?

Suggestion box telephone
E-mail directly to representative

10. If you have any other means to provide complain please write.
______________________________________________________________________________
______________________________________________________________________________
11. Does Awash bank worker handle customer complaints properly?
Yes No

Part four: questions related to measure customer satisfaction.

12. Are you satisfied with the performance of Awash bank service?
Yes No
13. How often do you use the bank?
Always irregularly
Sometimes often

39
14. Do you think you are loyal customer?
Yes No
15. Do you think the Awash bank employees are willing to help the customer?
Yes No
15. If you have additional comment regarding to help customer please write
_____________________________________________________________________________
_____________________________________________________________________________
_______________________

Appendix 3

Mekelle University

College of business and economics

Department of marketing management

Interview questions for the manager of Awash bank

1. What measures the bank use to make customer loyal?

2. How to handle its customer’s complaints?

3. How the bank measures its customer satisfaction?

40