GREAT LAND COLLEGE

POST GRADUATE STUDIES

ASSESSMENT OF CUSTOMER RELATIONSHIP

MANAGEMENT IN COMMERCIAL BANK OF
ETHIOPIA BEDELE BRANCH.

MDM THESIS PROPOSAL

By
Melikte Yohannis Andualem
ID No:-GLC/2008/14

Program: MDM
Department: Developmental Management
Advisor: Dasalegn Mosissa (Assistant Professor, PhD Candidate,
AAU)

July 2022
Nekemte, Ethiopia
ACKNOWLEDGMENT

First and for most I would like to thanks my God who help me in all the circumstances
and stages of this study.
Secondly, I would like to express my gratitude to my advisor Mr Dasalegn Mosissa for
his cooperative advice and valuable comments, that his advice and comments are key for
the success of this study.

Thirdly, I would like to thanks my staff members who will give me financial support for
this study.

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I
Contents
1. Introduction.........................................................................................................................1
1.1 Background of the study...................................................................................................1
1.2 BACKGROUND OF THE ORGANIZATION............................................................1
1.3. STATEMENT OF THE PROBLEM...........................................................................2
1.4. OBJECTIVES OF THE STUDY.................................................................................2
1.4.1. General Objective.....................................................................................................2
1.4.2 The specific objectives..........................................................................................2
1.5. SIGNIFICANCE OF THE STUDY............................................................................3
1.6. SCOPE OF THE STUDY............................................................................................3
1.7. LIMITATION OF THE STUDY.................................................................................3
2.1 Definition of CRM........................................................................................................3
2.2. Definition of CRM Objectives in Banking Sector.......................................................5
2.3. A Model Design for CRM at Garanti Bank.................................................................6
2.4. CRM Development......................................................................................................6
3.2 Study area.....................................................................................................................7
3.1 Target Population..........................................................................................................7
3.3 Source of data...............................................................................................................7
3.4 Method of data collection.............................................................................................8
3.6 Methods of data analysis..............................................................................................8
4. Work plan...........................................................................................................................8
5. Budget breakdown..............................................................................................................8
6. REFERENCES...................................................................................................................9
APPENDIX I........................................................................................................................11

ACRONYMS
1. CBE= Commercial Bank of Ethiopia.
2. CRM= Customer Relationship Management.

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 3. FQ*=Frequency.
4. ICT= Information communication Technology.
5. ATM=Automatic Teller Machines.

Summary
This study will be conducted on the assessment on customer relationship management in
Commercial Bank of Ethiopia Bedele Branch, with having the general objective, to assess
the customer relationship management in the bank.

II
To reach at successful investigation a sample survey will be conducted, by selecting
potential customers and employees of the bank by using judgmental sampling technique.
The data will be gathered by using both secondary and primary source of data. Primary
data will be collected by using questionnaire and interview. The secondary data will be
collected from published and unpublished materials.

In general this study will indicate the customer relationship management conditions in the
bank.

III
 CHAPTER ONE

1. Introduction
1.1 Background of the study
Customer relationship management is a multifaceted process mediated by a set of information
technologies, that focuses on creating two way exchanges with customers, so that the firms has
estimated knowledge of their needs, wants and buying patterns. In this way customer relationship
management (CRM) helps companies understand, as well as anticipate the needs of current and
potential customers functional that support this business purpose include sales, marketing,
customer service, training, professional development, performance management, human resource
development and compensation. CRM is the philosophy, policy and coordinating strategy
connecting different players within an organization to coordinate their efforts in creating over all
valuable series of experience, products and services for the customers (Lacks Human Jha, 2010).

CRM is comprehensives approach for creating, maintaining and expanding customer

relationship. The CRM approaches has received increased attention as a marketing concept
during that last decades both among practitioners and in academia (Kristin Anderson, carol Kerr,
2002).

The number of articles and books on CRM appears to be increasing incrementally and the
implication from this is that a new sub discipline of marketing research is emerging. As with
most emerging research fields, there certain amount of confusion associated with CRM research,
not least since there is a great variety of topics that have been addressed in CRM research. There
is a need for reflection on this emerging research field and consideration must be given to
identifying trends and relevant to picks for further research (Olaf Wefl berg, chorister strand
burgher Sand berg Karl W. Sandberg p. 193).
CRM helps organizations understand how to build customer loyalty through building unique
relationship, building strategies such as a partnership, brandings, and superlative customer
service (C.K Prahalad, partica B. Kamas Wa,u, 2001).
In Banking and Finance sector, a customer is a core component, which occupies prominent place
in the new millennium. The banking business cannot operate without customer, nor is business
done by acquiring a certain number of customers. To quote S.T Ramachandra, "it" is a
continuing process of transactions culminating in a long term banks customer relationship. It is
generally seen that most business institutions thrive more on keeping old customers rather than
getting new customers, in order to retain customers we must work harder on managing individual
customer relationship. It has been found that keeping existing customers happy and satisfied in
turn brings new customers and becomes easier to market to products. The old paradigm was
price, quality and service. The new paradigm is, price quality, service speed, convenience value,
solutions… the list is endless" as such present customers are as more and more demanding.
Consumers of today want all service under one roof and expect to save time as while doing
business and want transactions to be simplified as possible. The list of customers wants can go
on and on. No bank can possible meet all needs of its customers given to the diversity of their
wants. In such situation, the secret key factor of company's success is effective CRM.

CRM is paradigm shift form "product centric and mass marketing to customer centric" way of
business. CRM is an integrated business strategy that replaces the customer at the centre of

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business consciousness CRM means different. (Mohan Prasad Shrivastava,
PradeepKumerPandey, V.P Vid yarth; 2007).
Today marketing is not just developing, delivering and selling, it is moving towards developing
and maintaining long term relationships with customers. (Rebel Tadesse, 2010)

1.2 BACKGROUND OF THE ORGANIZATION

The commercial bank of Ethiopia (CBE) in the largest commercial bank in Ethiopia and has
about 819.3 billion birr in assets at the end of June 30th 2020).

The commercial bank of Ethiopia (CBE) has aggressively expanded its presence in all directions
of the country. Despite the flourishing of private commercial banks, the CBE has remained in the
lead in terms of assets of assets, deposits capital, and customer base and branch network.
Currently, it has 1604 branches, spanning the entire breadth and with of the country. As on June
30th 2020, total deposits stood at birr 1.1 trillion birr while total asset and capital of the bank
reached 712 billion birr respectively.

The commercial bank of Ethiopia Bedele branch was opened February 12, 1973 according to
Ethiopian calendar. The main reason to opening of this branch of CBE was that there was no
other bank at the time and people phases the problem followed by lack of the bank.
The manager of the Woreda started the process of opening this bank in Bedele town at the time.
He plays a great role by asking up to the CBE main branch and taking the permission from them
as they to open it.
The officials of CBE main branch presented to the area and opened the CBE Bedele branch at
the year stated above.

After the bank was opened the people of the area was not much aware about the benefit of the
bank. Due to this reason they doesn’t get the benefits gained from the bank such as taking loan,
depositing money, opening account and so on. They do not know about these functions.
For this reasons the bank also faced the problem, it stayed without earning any profit for long
period of time. This situation is the same to early ages of banking in Ethiopia.

To develop the awareness of the society many works has been done at the time. For instant
starting from the manager of the Woreda all employees of the government in the area has opened
their account and done many works like teaching the people to make them aware with the
banking system.

Now a day’s most of the peoples of the area are aware of the bank service and benefits. This
indicates that the banking system is in rapid development in Ethiopia.

1.3. STATEMENT OF THE PROBLEM

Customer relationship management (CRM) is a business strategy of establishing developing,
maintaining and optimizing of a long term mutually valuable relationships between customers
and organizations. It is clear that financial service providers especially banks can no longer
sustain growth and profitability without that implementation CRM. (Kristin Anderson, Carol
Ker, 2002).
This study aims at assessing how commercial bank of Ethiopia (CBE), Bedele branch
implements CRM in order to achieve its objectives by building long term and effective customer
relationship. Moreover it access capabilities that CBE, have, the attitudes, the way it implement
CRM, its impact and its trend in managing the customer.

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This study will be conducted to find possible justifications weather CRM helps CBE to enable its
marketing activities better and target its best customer or not.

In generally this study will try to give answer for the following basic questions.
1. Does CRM is effective in commercial bank of Ethiopia?
2. How do this bank and its customers perceive CRM?
3. Does this bank use CRM as a weapon to attract new customers, retain the existing
customers and to win back the lost customers?
4. Can CRM brought satisfaction to the customers and gain to the bank?

1.4. OBJECTIVES OF THE STUDY

1.4.1. General Objective
The general objective of this study is to assess the customer relationship management in
Commercial bank of Ethiopia, Bedele Branch.

1.4.2 The specific objectives

1. To examine the effectiveness of CRM in the service of commercial bank of Ethiopia.
2. To create awareness and common understanding about the importance of CRM.
3. To know whether the bank use CRM as a weapon to attract new customers, to retain the
existing customers and to win back the lost customers or not.
4. To know whether CRM can bring satisfaction to the customers and gain to the bank.

1.5. SIGNIFICANCE OF THE STUDY

This study will attempt to show the importance of CRM in commercial bank of Ethiopia. It helps
to alleviate the problems associated with customer loss through the implementation of effective
customer relationship management. Besides, this study will be helpful in identifying those
customers who may dissatisfy due to poor customer handling and poor customer service.

1.6. SCOPE OF THE STUDY

A complete evaluation and judgment regarding CRM activities of banking industry in Ethiopia
would be very much task and time taking. However, it is necessary to narrow this study in to a
manageable size immediately to apply the pilot test of the research to solve effectiveness of
CRM in the service of commercial bank of Ethiopia. Therefore, this study will confined to the
assessment of CRM in Commercial Bank of Ethiopia Bedele branch and selected customer’s
form the bank will be examined to clarify their intention about the CRM service given by the
bank.

Besides the size of the sample, survey will be relatively small due to the nature of the assessment
and to overcome the problems with in short period of time. It will be difficult to obtain data of all
customers, but efforts will be made together with representative samples.

1.7. LIMITATION OF THE STUDY

 Some of the respondents fill the questionnaires carelessly.
 Few secondary data are obtained because some bank’s documents are strictly forbidden
for external parties.

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 CHAPTER TWO
2. LITERATURE REVIEW
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
2.1 Definition of CRM
Customer relationship management is a comprehensive approach for creating, maintaining and
expanding customer relationship. (Kristin Anderson, Carol Kerr, 2002). According to this
definition of CRM, "comprehensive" do not belong just to a single department or section such as
sale or responsibility of the customer service group. When CRM is delegated to one area of an
organization, customer relationship will suffer on the other size of the definition CRM is an
approach i.e. a way of treating or dealing with customer relationships.

Customer Relationship Management is the establishment, development, maintenance and

optimization of long-term mutually valuable relationships between consumers and the
organizations. Successful customer relationship management focuses on understanding the needs
and desires of the customers and is achieved by placing these needs at the heart of the business
by integrating them with the organization's strategy, people, technology and business processes.
 
At the heart of a perfect CRM, strategy is the creation of mutual value for all the parties involved
in the business process. It is about creating a sustainable competitive advantage by being the best
at understanding, communicating, and delivering, and developing existing customer relationships
in addition to creating and keeping new customers. So the concept of product life cycle is giving
way to the concept of customer life cycle focusing on the development of products and services
that anticipate the future need of the existing customers and creating additional services that
extend existing customer relationships beyond transactions. (Pritesh Y. Chothani, Arjun Siva
&LochanNaraynan,2010).

Today,  many  businesses  such  as  banks,  insurance  companies,  and  other  service providers
realize  the  importance of Customer Relationship Management  (CRM) and its potential  to help
them acquire new customers,  retain existing ones and maximize their  lifetime  value.
At this point, close relationship with customers will  require  a strong  coordination  between  IT
and marketing departments to provide a long term retention  of  selected  customers. This  paper
deals with the role of Customer Relationship Management  in banking sector and  the need for
Customer relationship Management  to  increase customer value by using  some analytical
methods  in CRM  applications. .(Semih Onut Ibrahim Erdem, 2002)

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CRM  is  a  sound business  strategy  to  identify  the bank’s most profitable  customers and
prospects, and devotes time and attention to expanding account relationships with those
customers  through  individualized marketing,  reprising, discretionary decision making, and
customized service-all delivered  through  the various sales channels  that the bank uses. Under
this case study, a campaign management in a bank is conducted using data mining tasks such as
dependency analysis, cluster profile analysis, concept description, deviation detection, and data
visualization. Crucial business decisions with this campaign are made by extracting valid,
previously unknown and ultimately comprehensible and actionable knowledge from large
databases.  The model developed here answers what the different customer segments are, who
more likely to respond to a given offer is, which customers are the bank likely to lose, who
most likely to default on credit cards is, what the risk associated with this loan applicant
is. Finally, a cluster profile analysis is used for revealing the distinct characteristics of each
cluster, and for modeling product propensity, which should be implemented in order to increase
the sales.(SemihOnut Ibrahim Erdem, 2002)

In literature, many definitions were given to describe CRM.  The main difference among these
definitions is technological and relationship aspects of CRM. Some authors from marketing
background emphasize technological side of CRM while the others consider IT perspective of
CRM. From marketing aspect, CRM is defined by [Couldwell 1998] as “... a combination of
business process and  technology  that seeks to understand a company’s customers from the
perspective of who they are, what they do,  and what  they  are like”. Technological definition of
CRM was given as “...  the market place of the future is undergoing a technology-driven
metamorphosis” [Peppers and Rogers 1995]. Consequently, IT and marketing departments must
work closely to implement CRM efficiently.  Meanwhile,  implementation  of  CRM  in banking
sector  was  considered  by   [Mihelis  et  al.  2001].  They  focused  on  the evaluation of  the
critical  satisfaction dimensions and  the determination of customer groups with distinctive
preferences and expectations  in  the private bank  sector. The methodological approach  is
based  on  the  principles  of multi-criteria modeling and preference  disaggregation modeling
used  for  data  analysis  and  interpretation. [Yli Renko et al. 2001]   have  focused on  the
management of  the exchange  relationships and  the  implications of  such management  for  the
performance  and development of technology-based firms and their customers. Specifically the
customer relationships of new technology-based firms have been studied.  [Cook and Hababou,
2001] was interested in total sales activities, both volume-related and non-volume related.
They also developed a modification of the standard data envelope analysis (DEA) structure using
goal  programming  concepts  that  yields  both  a  sales  and  service measures. 

[Beckett-Camarata et al.  1998]  have  noted  that managing  relationships with their customers
(especially with  employees,  channel  partners  and  strategic  alliance partners) was  critical  to
the  firm’s  long-term success.  It was  also  emphasized  that customer relationship management
based on social exchange and equity significantly assists  the  firm  in  developing  collaborative,
cooperative  and  profitable  long-term relationships. [Yuan and Chang 2001] have presented a
mixed-initiative synthesized learning approach for better understanding of customers and the
provision of clues for improving customer relationships based on different sources of web
customer data. They  have  also  hierarchically  segmented  data  sources  into  clusters,
automatically labeled the features of the clusters, discovered the characteristics of normal,
defected and possibly defected clusters of customers, and provided clues for gaining
customer retention.[Peppers  2000]  has  also  presented  a  framework,  which is  based
on incorporating  e-business  activities,    channel management,  relationship
management and back-office/front-office  integration within  a  customer  centric  strategy. He
has developed four concepts, namely Enterprise, Channel management, Relationships
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and Management of the total enterprise, in the context of a CRM initiative.  [Ryals and Knox
2001] have identified the three main issues that can enable the development of Customer
Relationship Management in the service sector; the organizational issues of culture and
communication, management metrics and cross-functional integration especially between
marketing and information technology.

2.2. Definition of CRM Objectives in Banking Sector

The idea of CRM is that it helps businesses use technology and human resources gain insight
into the behavior of customers and the value of those customers. If it works as hoped,  a
business  can:  provide  better  customer service,  make  call  centers  more efficient,  cross  sell
products more  effectively,  help  sales  staff  close deals faster, simplify  marketing  and  sales
processes,  discover  new  customers,  and  increase customer revenues. It does not happen by
simply buying software and installing it. For CRM  to be  truly effective, an organization must
first decide what kind of customer information  it  is  looking  for  and  it  must  decide  what it
intends  to  do with  that information. For  example, many  financial  institutions  keep  track  of
customers' life stages  in  order to market  appropriate  banking  products  like mortgages  or
IRAs  to them at  the  right time  to  fit  their needs. Next,  the organization must  look  into all
of the different ways information about customers comes into a business, where and how this
data  is  stored  and  how  it  is  currently  used. One  company,  for  instance, may interact with
customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar
stores, call centers, mobile sales force staff and marketing and advertising efforts. Solid CRM
systems link up each of these points. This collected data flows between operational systems (like
sales and inventory systems) and analytical systems that can help sort through these records for
patterns. Company analysts can then comb through the data to   obtain a holistic view of each
customer and pinpoint areas where better services are needed.  In CRM projects, following data
should be collected to run process engine: 
1) Responses to campaigns,
2) Shipping and fulfillment dates,  
3) Sales and purchase data,  
4) Account information,  
5) Web registration data, 
6) Service and support records, 
7) Demographic data, 
8) Web sales data.
A Relationship-based Marketing approach has the following benefits: - Over time, retail bank
customers tend to increase their holding of the other products from across the range of financial
products or services available. Long-term customers are more likely to become a referral
source. The longer a relationship continues; the better a bank can understand the customer and
his/her needs & preferences, and so greater the opportunity to tailor products and services and
cross-sell the product / service range. Customers in long-term relationships are more comfortable
with the service, the organization, methods and procedures. This helps reduce operating cost and
costs arising out of customer error. With increased number of banks, products and services and
practically nil switching costs, customers are easily switching banks whenever they find better
services and products. Banks are finding it tough to get new customers, and more importantly,
retain existing customers. (Pritesh Y. Chothani, Arjun Siva &LochanNaraynan, 2010)
According to Mr. Kevin Jiang, Traditionally, banking business is divided by finance products. In
order to survive in the competitive market the bank must base on emphasizing on transaction
process, and debt investigation, focus on function of sales and services. There must also change
from product centered business model to customer centered business model. Due to the business

6
nature of banking sector, this transformation has to be at a gradual pace. To do so Mr, Jiang has
suggested some three phases.
First Phase:-
- To improve the products by targeting customers
- Service needs to be improved.
Second Phase:-
- To integrate and utilize effective customers data that based on the offer of basic service.
Third phase:-
- Further considering how to have an overall improvement of Bank products and business
process.

2.3. A Model Design for CRM at Garanti Bank

Garanti  Bank,  one  of  the  leading  banks  in  Turkey  were  looking  at  new  ways  to enhance
its customer potential and service quality. Electronic means of banking have proved a success in
acquiring new customer groups until the end of 2001. After then, a strategic decision was made
to re-engineer their core business process in order to enhance the bank’s performance by
developing strategic lines. Strategic  lines were given  in  order  to   meet  the  needs  of  large
Turkish  and  multinational  corporate customers,  to  expand commercial  banking  business,  to
focus  expansion  in  retail banking  and  small  business  banking,  to  use different  delivery
channels  while growing, and  to enhance operating efficiency  though  investments  in
technology and human resources.
To  support  this  strategy Garanti Bank has  implemented  a number of projects  since 1992
regarding  branch organization,  processes  and  information  systems.  The administration
burden  in  the  branches  has  been greatly  reduced  and  centralized  as much  as possible  in
order  to  leave  a  larger  room  to marketing  and sales. The BPR projects have been followed
by rationalizing and modernizing the operational systems and subsequently by the introduction
of innovative channels:  internet banking, call center and self-servicing. In parallel, usage of
technology for internal communication: intranet, e-mail, workflow and management reporting
have become widespread. (SemihOnut IbrahimErdem, 2002)

2.4. CRM Development

To be prepared  to  the changing economic conditions and,  in particular,  to a  rapidly decreasing
inflation  rate scenario  Garanti  Bank  has  started  timely  to  focus  on developing a customer
relationship management (CRM) system. The total number of customers is presently around two
millions, but an increase to roughly three millions is foreseen as merging with Osmanli Bank and
Koferz bank are achieved and the present growth targets are reached.
The  importance  for  the bank of managing  the  relationships with  their  customers has been
the  drive  of  the joint  projects  that  have  been  developed with  IBM  in  the  last three  years.
During the projects a number of crucial technological and architecture choices have been made
to implement the entire process. Realizing the importance of customer  information  availability
the  first  of  these  projects  has  focused  on  the problem of  routinely collecting and cleansing
data. The project has been undertaken by the bank with the spirit that has characterized the whole
CRM development. The project has promoted a massive  involvement of  the branches, namely
of  the portfolio managers and campaigns have been launched for popularizing among branch
staff the importance  of  gathering  and  maintaining  reliable  customer  data.  Another set
of methods have been tested for customer not included in portfolios (pool customers), such as
mailing or distributing questionnaires in the branches or using automatic teller machines (ATM)
and the call center. Methods for data checking and testing have been developed to be routinely
employed by the bank’s staff.

7
Results obtained are very good: for portfolio customers data available are respectively 98% for
the commercial ones and 85% for the retail ones. For pool customers availability goes down to
65%: this  is  a  well-known  phenomenon  due  to  the  loose relationship  with  the
latter customers. (SemihOnut IbrahimErdem, 2002)

At the heart of a perfect CRM, strategy is the creation of mutual value for all the parties involved
in the business process.  Traditionally, few people changed their banks unless serious problems
occurred. In the past, there was, to certain extent, a committed, often inherited relationship
between a customer and his/her bank. The philosophy, culture and organization of financial
institutions were grounded in this assumption and reflected in their marketing policies, which
were product and transaction-oriented, reactionary, focused on discrete rather than continuous
activities. (Pritesh Y. Chothani, Arjun Siva &LochanNaraynan, 2010)
 

8
 CHAPTER THREE
3. METHODOLOGY
3.2 Study area
The study area of this study will be CBE, Bedele Branch.
Study design
The study is mainly depending on primary data, which is generated through the sample survey by
employing structured questions. Besides the secondary data, it will be collected from published
and unpublished materials, company reports, and company policy, and procedure manuals.
Questionnaires will be distributed to customers at the reception area and responsible staff at their
office.

3.1 Target Population

The target population of this study is the customers and staff of commercial Bank of Ethiopia,
Bedele Branch.

3.3 Source of data

The source of data for this study is both primary and secondary data.

3.4 Method of data collection

The primary data will be collected by distributing questionnaire for both the customers and
employees of the bank and by making unstructured interview with the manager of the bank. The
secondary data will be collected from published and unpublished materials, company reports,
and company policy and procedure manuals.

3.5 Sample size and sampling technique

The total number of customers of CBE Bedele Branch is 12,500 during the study, but the study is
cover 1%of them through judgmental sampling and the bank has 42 number of employees, from
this the study will be conducted with 50% of them by using judgmental sampling as that of
customers. Finally, unstructured interview will be made with the manager of the bank.

3.6 Methods of data analysis

The data that will be collected through questionnaire and summarized by using tabulation
method and analyzed by using descriptive statistics technique.

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4. Work plan
No. Activity Execution Time
April June July Augst
1 Title Selection and Approval 
Proposal First Draft 
2 preparation Second Draft 
Final 
3 Data Collection Data Collection 
and Report Writing Report writing 2nd draft 
Final Paper Submission 

5. Budget breakdown
Table 1.6 The Budget breakdown of the project in Bedele September, 2022
1. Personal cost
No Personal Quantity Unit Unit price Total
Investigator 1 15 days 361 4350
Supervisor 1 3wk (21)days 361 6090
Total 10440

2. Stationary equipment’s
No Stationary equipment’s Unit Quantity Unit price Total
1 Duplication Pages 600 2.00 1200
2 photocopy paper Packs 2 390 780
3 Pen Pieces 4 15 60
4 Pencil Pieces 4 7 28
5 Sharper Pieces 2 5 10
6 Marker Pieces 4 25 100
7 Eraser Pieces 3 5 15
8 Calculator Pieces 1 400 400
9 Staples Packs 1 100 100
10 Binding Pieces 4 20 80
11 Rural Pieces 2 20 40
Total 0
3. Communication
No Communication Quantity Unit price Total
1 Telephone card 24 hr 0.5 1440
2 Internet 2 GB 1.5 2000
Total     3440
Grand Total
No Description Total
10
1 Personal budget 10440
2 Stationary equipment 2813
3 Communication 3440
Total 16693

6. REFERENCES
 Kirstin Anderson and Carol Kerr, customer relationship management, TATA McGraw
Hill edition, New Delhi 2002.
 Mohan Prasad Shrivastave, PraeepKumerPandey, V.P Vidyarthi, CRM 2007.
 Mr. Kevin Jiang, customer relationship in the banking sector, 2002.
 Neil Kokemuller, the importance of CRM in the baking succor, 2011.
 Ehow.com http://www.ehow.com/facts6883122 importance crm-banking
sector.html#;zzifT6NVgH5
 http://www.wikipidia.com customer_ relationship_ management
 LakshmanJha, customer relationship management, 2008.
 http://www.combanketh.com
 http://en.wikipedia.org/witi/commercial_bank_of_ethiopia.
 .http://www.emeraldisight.com/journals.html? Articled=867513 & show=html
 Robel Tadesse, CRM Application in Financial Sector, 2010
 Semih Onut Ibrahim Erdem, Customer Relationship Management in Banking Sectorand
A Model Design for BankingPerformance Enhancement2002

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 APPENDIX I
GREAT LAND COLLEGE OF BUSINESS ADMINISTRATION
DEPARTMENT OF DEVELOPMENTAL MANAGEMENT
Questionnaire to be filled by Employees of CBE Bedele Branch.
Dear Respondents:
This questionnaire is designed and prepared by Great Land College of Business Administration
prospective graduate of Developmental Management, for partial fulfillment of the course
Research Design. I highly appreciate for your patience and kind cooperation to fill this
questionnaire.
Thank you

Respondent Information
Name of the respondent (Not Obligatory)
Age (not obligatory)
Sex Male Female
Educational Background
1st Degree
12 Grade complete
Diploma
<12th Grade
Instruction
Please put tick mark () on the box provided and write your answer for those open-ended
question.
1. Is your bank has a clearly defined CRM strategy? Yes No
2. If yes is the strategy communicated to the stake holders
Yes No
3. Do you think that the staff of the bank has clear understanding About CRM?
Yes No Not all of them
4. Are the employees of the bank cooperative and have good relationship with the banks
customers?
Yes No
5. The bank complaint handling procedure
Excellent Very good Good Poor
5. The banks response to customers complaint
Excellent Very good Good Poor
7. The banks relationship with customers
Excellent Very good Good Poor
8. The banks employees’ responsiveness
Excellent Very good Good Poor
9. Employees ability to adopt working environment and conditions
     For consistent service delivery
Excellent Very good Good Poor
10. Does your bank have customer satisfaction monitoring system?
Yes No
11. If yes, what are such mechanisms employed?
______________________________________________________________________________
______________________________________________________
12. CRM is both a strategy and tool to retain existing customers,
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 Strongly agree Agree Disagree Strongly
disagree
13. CRM is a responsibility of an individual department or section
Strongly agree Agree Disagree Strongly
disagree
14. CRM helps to address customer satisfaction
Strongly agree Agree Disagree Strongly disagree
15. CRM can be used only through electronically
Strongly agree Agree Disagree Strongly disagree
16. CRM cannot be implemented in service industry
Strongly agree Agree Disagree
Strongly disagree

17. CRM helps to earn greater profit

Strongly agree Agree Disagree Strongly disagree
18. Who is the responsible for CRM?
The marketing department
The IT department
The entire staff
The top management
19. Do you think that the CRM IS useful only for the retention of existing major customers?
Yes No
20. Do you think that your CRM strategy supports the broad goals the efforts of other
departments and functions?
Yes No
21. What type of service recovery actions in response to a service failure?
_________________________________________________________________
_________________________________________________________________
22. Do you use ICT facilities for the best satisfaction of customers?
Yes No
If yes, mention few _______________________________________________
___________________________________________________________
If no what strategies do your bank use to satisfy, retain and win back lost customers?
_________________________________________________________________
_________________________________________________________________
Questionnaire to be filled by the customers of Commercial Bank of Ethiopia, Bedele Branch.
Respondent Information
Name of the respondent (Not Obligatory)
Age (Not Obligatory)
Occupation (Not Obligatory)
Sex Male Female

Educational Background
1st Degree
12 Grade complete
Diploma
<12th Grade
Instruction

13
Please put tick mark () on the box provided and write your answer for those open-ended
questions.
1. For how long have you been a customer of this bank?
More than 5 years 3-5 years
1-3 years
2. Which of the following reason/s you prefer this bank to be a customer?
The banks customer handling
The banks image
The banks customer service and complaint handling procedure
The employee responsiveness
If other (please specify) _______________________________
3. Do you have any idea about customer’s relationship management (CRM)?
Yes, I do have enough idea
No, I do not have any idea
4. The bank provides its service at the time promises to do so
Strongly agree Agree Disagree Strongly
disagree
5. The employee of the bank givesyour prompt service?
Strongly agree Agree Disagree Strongly
disagree
6. The banks employees are always willing to help you
Strongly agree Agree Disagree Strongly
disagree
7. You feel safe in your transaction with the bank
Strongly agree Agree Disagree Strongly disagree
8. The bank gives you individual attention
Strongly agree Agree Disagree
Strongly disagree
9. Employee of the bank understand your specific needs
Strongly agree Agree Disagree
Strongly disagree
10. The banks physical facilities are visually appealing
Strongly agree Agree Disagree
Strongly disagree
11. Do you think that the bank has convenient working hours? Yes No
12. Please indicate that how the banks service compares with the level
      Of satisfaction, you expect?
Lower Higher the same as
13. Do you think that the manger and the banks employees        work closely to satisfy you?
Yes, to the large extent
Yes, but to some extent
No, they work independently
14. Whom do you meet at most of your visit time in the bank?
The front desk clerks and tellers
The supervisors
The managers
15. Do the other treat you as a king? And have ad friendly relationship?
Yes, Always
Some times

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16. CRM in the banking industry is not necessary.
Strongly agree Agree Disagree Strongly
disagree
17. Only the front desk clerks and tellers are responsible for Customer services
Strongly agree Agree Disagree Strongly
disagree
18. Have you ever faced a problem with banks front desk employees?
Yes No
19. To whom you would tell if you dissatisfy with the banks service
To the manager of the bank
To the CRM department of the bank]
The immediate supervisors
I do not tell any other else
20. Please state any of your opinion about banks service.
______________________________________________________________________________
___________________________________________________
Interview questions presented to the manager of commercial bank of Ethiopia Bedele branch.
1. Do you use CRM in your banking activity?
2. Do the employees of the bank have good understanding about CRM?
3. For what purpose do you use CRM?
4. Do you think that CRM can gives satisfaction to the customers and gains to the bank?

15