The aim of this study is to examine the impact of customer relationship management on marketing performance of selected commercial companies in Mukalla city. The study adopted descriptive research design; the population of this study comprises selected commercial companies in Mukalla city covering 4 commercial companies. The instrument used for collecting data from the respondents is the questionnaire, and the data collected from the respondent was analyzed using percentage analysis, while hypotheses were tested using Pearson Correlation. The result shows that there is significant relationship between variables of the study since (R = 0.82, 0.89 and 0.87, P < 0.05, df = 1). The result, revealed that sometimes their customers are not happy with the commercial companies operating hours because, at times they close earlier than expected from customers, also the management failed to give intrinsic rewards (e.g., employee job satisfaction, sense of achievement) for employees is not considered as a critical factor for attaining the commercial companies quality objectives. The study therefore, recommends that management should consider increasing their operations hour compare to the normal hours of their operation, because some of the customers complained about the early closing hours not convenient for them, some of the customers prefer going to commercial companies 8:00pm and above, also there is need for the management to develop strategy that will recognize employees motivation (e.g., employee job satisfaction, sense of achievement), because motivated employee is a resourceful to the commercial companies, it will make employees to work with the management towards attaining the commercial companies quality objectives and ensuring that product quality control of the commercial companies adhered to the require standard customer satisfaction. Finally the result shows there a strong impact of the adoption of customer relationship management on marketing performance on commercial companies in Mukalla city.