This document discusses a study on the effect of customer relationship management (CRM) practices on the marketing performance of the Bank of Abyssinia in Ethiopia. The research aims to identify how CRM-based technology, organizational structure, customer focus, and knowledge management influence marketing outcomes, using both qualitative and quantitative methods. The findings indicate a positive correlation between these CRM dimensions and marketing performance, with knowledge management having the most significant impact.

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GRANDMARK INTERNATIONAL COLLEGE
THE EFFECT OF CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) PRACTICE ON MARKETING
PERFORMANCE: THE CASE OF BOA.
ABINET BEFIRDU
ADDIS ABABA, ETHIOPIA
AUGUST, 2024 G.C

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OUT LINE…,
• INTRODUCTION
• Background Of The Study)
• Statement Of The Problem
• Research Objectives/Questions
• Significance of the study
• Limitations
• LITRATURE REVIEW
• Theoretical & Conceptual Framework
• METHDOLOGY
• Research Design, Approach, Data Source and data type
• Sampling technique & Sample size
• Data Analysis
• DATA ANALYSIS
• RESEARCH HYPOTHESIS
• CONCLUSION/RECOMMENDATION

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Background Of The Study
• In todays scenario most researches are in conducting across such areas of study…,one of the
research's is the study in which it were taken a time in 2017 by (Kasim&Minai, 2009; Sigala,
2017). Studied customer retention for business sustainability project in the Bank industry.
• On the other hand the yearly published awarded man Bohling try to conduct his study across
identifying the factors that influence the effective implementation of CRM management on
service industry in Australia (Source: Bohling , 2018).
• So, when the researcher realize that such studies are conducted abroad, the researcher were
being with an interest to study such areas of CRM related concept…..in case the researcher
were chosen local Service Org. Bank of Abyssinia by combining with such prior literatures.

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Statement of The Problem…
• In today’s scenario, losing a loyal and ordinary customers might be a nightmare.
Failed to retain the customers is expensive in terms of lost profitablity.Therefore,
keeping valued, customer is a strategic need for every Bank.
• Various academics have carried out many studies on the variables that affect
CRM system in the service sector, and they have identified various important
elements like Technology, Knowledge management,.., but not limited on them.
• Therefore, This study aimed to fill gaps left by the previous researches
specifically in identifying and assessing the effect of CRM on the Bank’s
marketing performance

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General obj.v
Is to examine and investigate and the effect of
customer relationship management practice on
market performance: The case of Bank of
Abyssinia.
3
To examine the effect of
CRM based technology on
Marketing Performance.
Research Objectives…,
4
To examine the effect of
CRM based organization
on Marketing Performance.
1
To examine the effect of
key customer focus on
Marketing Performance. 2
To understand the effect of
knowledge management on
Marketing Performance.

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Research Question….
2
What is the effect of
knowledge management on
Marketing Performance?
4
What is the effect of CRM based
organization on Marketing
Performance?
1
What is the effect of key customer
focus on Marketing Performance?
3
What is the effect of CRM based
technology on Marketing
Performance?

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Significance Of The Study
To the industry
 To improve such various faced problem
other Organizations in the industry will
use this study as a mirror where the
Organizations stands in terms of human
resource management practice.
To the body of knowledge
 The significance of this study is to
collect and document valuable data and
information in the area of CRM in order
to make this thesis one of the reference
for further researches
To other researcher
✓ The study can similarly be used as a
wellspring of information for future
assessment.
To the organization
 The survey will be relied upon to reveal an open
door for BOA to adjust the origination's CRM
practice to clear the problem.

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Limitations of the Study….,
2
This study has limited to the
BOA and therefore finding
may not be applicable in
the other sector.
3
the spread of respondents'
identified in the sample were have
time taking problems (in filling the
questionnaire)
1
Time frame for the preparation
of the research document was
squeezed

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Theoretical + Conceptual Frame Work
Theoretical Framework
 Based on theory this study try to highlight different recent Journal articles and books in order to
clear the concept of CRM and related terms.
 It also consist the definitions of each CRM variables designed to be studied
 It also gives a brief understanding about the relationship of those listed variables with market
performance in the prior researches
 Finally the researcher develops a conceptual frame work based on the variables (Independent &
Dependent)
Conceptual Framework
• This Research Model is dev
eloped by the researcher referring
from Source: Adopted from
Alemu Muleta Kebede&Zewdu Lake
Tegegne (2018) with
modification by the researcher:

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Methodology…
Population
• The target population of the study was both customers and branch management
of Bank of Abyssinia which is finding in the selected branches: Bole Corporate
Branch, Lafto Branch, Genet Branch and Habesha Corporate Branch.
Research Design, research approach, Source and type of data
• The possible types of research design that was undertaken for this study;
descriptive (describe effect) and explanatory (describe the r/ship).
• the Mixed methods approach (both qualitative and quantitative) will be used
because the study seeks to explore the extent of those factors (variables) affect
marketing performance of the bank.
• In this study the data obtained from primary and secondary sources. The
primary data will gather from the organization employees by using questioner and
interview..
• The secondary data will be collected from BOA reports, and documents to assess.

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SAMPLING TECHNIQUE AND SAMPLE SIZE
Sampling Technique
• The total numbers of customers in the selected four branches were 215,560 .
• First the researcher takes a proportional stratified random sampling method. In order to
get the sample size for each branch based on their proportion to the total population
• Finally based on their proportion each branches (Bole Corporate Branch, Lafto Branch,
Genet Branch and Habesha Corporate Branch.) had a sample size of 65,5,45 and 59
respectively.
Sample Size
• The sample size (n) was determined using Frankael & Wallen, 2006 formula and
determined as 174.

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• data were analyzed by using descriptive statistics such as mean, standard
deviation, percentage, frequency distributions to describe research sample,
• Sections of questionnaire measured by five point likert scale.
• Used SPSS V20.
• From SPSS output Correlation analysis took place to calculate the strength
and direction of the relationships between the independent and dependent
variables and
• Use regression analysis to identify the cause and effect relationship
between the research variables.
• Once data is collected and processed by using both descriptive and inferential
statistical parameters, such as standard deviations, mean, ANOVA
Method of Data Analysis .…

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• In case of gender Males were 10% larger than females.
• In case of age most of the respondents were b/n 29-39.
• In terms of education first degree holders were dominant. Therefore,
they were able to analyze the questions for respond.
• In case of occupation the majority of respondents were employed by private
businesses.
• Most of the customers were retain for almost five years with the bank.
• Large number of the customer has been visiting the bank from bi weekly
to monthly. So the respondents were have real response.
Method of Data Analysis .…

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• The reliability of the instrument was assessed using Cronbach Alpha by
identifying the relationships between the study's variables. The items
were acceptable measuring above 0.758.
• The validity- was accurate b/c there was a logical connection between
the questioners and the study's goals was sought.
Method of Data Analysis .…

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• Mean scores and standard deviations were also computed for Likert scale
questions.
• a mean of between 3.00 and 3.99 was considered to be moderate while
that of above 4.00 indicated that practiced a large extent.
• On the other hand, the standard deviations were used to show the extent
of variance on customer perception.
• BOA perform practices moderate extent in case the mean result were b/n
3.00 and 3.99 and the Standard deviation the results indicate a moderate
agreement with all the statements and that the respondents were fairly
homogenous in their responses.
Method of Data Analysis .…

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• CRM based technology is strong and statistically correlated with market
performance. The correlation coefficient between these variables is r=. 619 with
0.01 significance level .
• Based on correlation result table shows knowledge management is strongly
and significantly correlated with marketing performance at 0.01
significant level, =0.573.
• Key customer focus and marketing performance has positive and strong
relationship with r=0.647 at significance level 0.01;
• CRM based organization strong and significantly correlated with marketing
performance at significance level 0.01 , r= 0.500
Correlation Analysis .…

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• From correlation coefficient table we have got beta value for each variables:
Coefficients, Beta weights or Standardized regression coefficients. With a constant of 2.906
 Customer knowledge management (KM)= 0.402
 CRM based technology(CRMT) =0.323
 Key customer focus(KCF)=0.307
 CRM based organization(CRMO) =0.109
• Marketing performance
(MP) = 2.906+0.42KM+0.323CRMT+0.307KCF+0.109CRMO.
• The beta value on the coefficient table indicates level effect of each variable has on
dependent variables of marketing performance
• The highest beta value is for knowledge management beta 0.402 this means BOA practice
on customer knowledge management to enhance marketing performance. This means it
correlated strongly with market performance than others.
Regression Analysis .…

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The hypothesis testing will mark from multiple regression table:
H1: Key customer focus has positive and significant effect on marketing performance
• It has positive and significant effect on marketing performance (p>0.05). Hence the
proposed hypothesis is not rejected.
H2: knowledge management has positive and significant effect on marketing performance
• It has positive and significant effect on marketing performance (p>0.05). Hence the
proposed hypothesis is accepted
H3: CRM based organization has positive effect significant on positive and significant effect on
marketing performance
• It has positive and significant effect on marketing performance (p>0.05). Hence the
proposed hypothesis is accepted
H4: CRM base technology has positive and significant effect on marketing performance
• It has positive and significant effect on marketing performance (p>0.05), Hence the
proposed hypothesis is accepted
Hypothesis Testing.…

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• Based on average mean score (3.38) and Standard deviation (0.95) It is possible to
conclude, banks continually improve existing CRM practices as customers’ needs
change and also in line with changes in technology, learning to win, maintain and their
needs met more systematically than the competitors improves marketing performances
of bank
• It was found that each of the dimensions of the CRM practices has a different effect on
the marketing performance. The largest effect was found in the knowledge management
and the second CRM based technology.
• Therefore, all CRM directions have a positive and significant effect on the bank's
marketing performance of the bank
Conclusion.…

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 With respect of CRM based organization
 BOA should organize the whole organization around CRM through good organization
structure, motivated and trained employee.
 It is important for organization to enforce employee to CRM oriented conduct and behavior
 Training programs with CRM components are crucial for employee especially employee
who regularly interact with customers
 Train employees to gain necessary knowledge how to serve and handle customer
complain
 With respect of Knowledge management
 BOA should provide different products based on customer requirement like foreign and
local loan and understanding customers need on quality service.
 With respect of Key customer focus
 BOA should identify important customer and provide better service or spatial care
 With respect of CRM based technology
 Employee of BOA should be skilled with hard and soft ware of the organization,
Recommendation.…

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Thank u for listening!