Influence of Customer Relationship Management on Customer Retention in the Banking Sector in Tanzania

Abstract

This study aims to assess the influence of customer relationship management on customer retention in the banking sector in Tanzania with particular reference to Tanzania Commercial Bank (TCB). In this study, customer relationship management was measured by customer complaint handling and improved customer service quality. The study employed mixed method research design were qualitative and quantitative methods were used. The study gathered data from 100 respondents through structured questionnaires and interview. The collected data were analysed by SPSS 24.0 for giving out results that were really presented through descriptively and inferentially statistics. However, the respondents’ profile was analysed with descriptive analysis with the help of frequency table and percentages. On other hands the relationship of the study variables was performed by correlation and multiple regression analysis. Data obtained using interviews were transcribed and interpreted using content analysis. The study findings revealed that customer complaint handling and improved customer service quality have positive and statistically significant effects on customer retention in TCB. This implied that customer retention in the banking industry is influenced by customer relationship management practices assessed in this study. The findings of the study showed that the predicting variables of the study; improved customer quality service and complaint handling have a statistically positive and significant influence on customer retention in banking sector in Tanzania.