Abstract:
Customer retention is a critical factor for business success, particularly in the banking sector where
competition is intense and service differentiation is limited. This study examines the effect of customer
relationship management on customer retention in the case of the Commercial Bank of Ethiopia in
Gondar City. Specifically, the research examines the effect of trust, communication, conflict handling,
commitment, and bank brand image on customer retention. A mixed research approach was employed,
combining both quantitative and qualitative methods. Primary data were collected through structured
questionnaires using a five-point Likert scale, distributed to CBE customers across 24 branches, and
supported with interviews conducted with bank management. A total of 343 valid responses were
analyzed using descriptive statistics, correlation analysis, and multiple linear regression via SPSS 25
software. The findings indicate that trust, communication, conflict handling, and bank image have a
positive and statistically significant effect on customer retention. However, commitment showed a
positive but statistically insignificant effect. These results suggest that strengthening customer trust,
improving communication, managing conflicts effectively, and maintaining a strong bank image are key
strategies for enhancing customer retention. The study recommends that CBE prioritize these customer
relationship management dimensions to maintain long-term customer relationships and reduce customer
switching behavior.
