Abstract:
Abstract: The ultimate objective of the marketing progression is to hold present customers, attract new ones,
turn the customers into loyal ones and promote the relationship. Every business organizations without loyal
customers and strategic customer relationship marketing are bound to be unsuccessful. The main purpose of
this study is to determine the effect of Customer relationship marketing on customer loyalty in case of public
and private owned banks in Gondar city. Quantitative research methods with deductive approach and
explanatory research design were used in this study. For conducting this study, convenience sampling
technique was used. Structured questionnaire with five point Likert scale was used to collect the data from the
customers of the banks. A total of 422 questionnaires were distributed to customers of both public and private
owned banks found in Gondar city; however, 418(99.05%) were valid and accurate. The data were analyzed
through descriptive and inferential statistics (descriptive analysis, correlation, and multiple regression
analysis) by using SPSS version 20. The findings of this study has shown that, the dimensions of Customer
relationship marketing namely trust, commitment, communications and conflict handling have positive and
significant effect on customer Loyalty. However; both empathy and responsiveness have insignificant effect
on customer’s loyalty. It is suggested that banks should apply effective conflict handling practices,
communicate with their customers permanently, creating and developing customer trust, and demonstrate
commitment in order to be successful in gaining customers loyalty
