Customer Management and Organizational Performance of Banking Sector: A Case Study of Commercial Bank of Ethiopia Haramaya Branch and Harar Branches

Abstract

The objective of this study is to investigate customer management and organizational performance of Commercial Bank of Ethiopia Haramaya and Harar branches. A total of 53 questionnaires were administrated to bank employees, out of which 45 completed in questionnaires were received back and then the data is analyzed with aid of SPSS 20 version. The hypothesis test confirms that there is a positive relationship between customer management and organizational performance. The finding indicates customer management practices can significantly lead to improvement of organizational performance in respect of customer attraction, customer satisfaction, and customer retention. The findings also point to   some measures which can be taken to enhance organizational performance of the banks. The study also contributes to banking sector literature by indicating the key role of customer management. Moreover, it also contributes to close the gap of empirical research in the field, which exists particularly due to the diverse nature of the banking sector in Ethiopia.

Keywords: Customer Management, Organizational Performance, Customer Attraction, Customer Satisfaction, Customer Retention.