THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON BANK PERFORMANCE IN TANZANIA A CASE STUDY OF CRDB BANK AT ILALA DISTRICT IN DAR ES SALAAM

Abstract

ABSTRACT This study was based on “The Influence of Customer Relationship Management on Bank Performance in Tanzania”. It explores how Customer Relationship Management (CRM) impacts the performance of CRDB Bank. It examined to examine the contribution of CRM in improving customer retention, service quality, and overall bank performance. The study focused on specific CRM strategies such as key customer focus, technology-based CRM, and their effects on bank performance in a highly competitive market environment. The research was guided by three specific objectives: (i) to examine the contribution of CRM on bank performance; (ii) to determine the influence of key customer focus on bank performance; and (iii) to assess the impact of technology-based CRM on bank performance. The research employed a case study design, focusing on CRDB Bank. The sample size comprised 85 respondents, including bank managers, customer service officers, and customers. Data were collected using questionnaires and analyzed using SPSS to ascertain descriptive statistics in order to evaluate the relationships between CRM strategies and bank performance. The major findings revealed that CRM significantly improves communication with customers supported by 47% who agrees that Customer Relationship Management improves effective communication when delivering service to customer, helps in resolving complaints effectively, and contributes to building long-term relationships with customers. The study concluded that CRM is crucial in enhancing bank performance by boosting customer loyalty and satisfaction. The study recommend in order to strengthen internal communication on CRM practices and providing more training to employees to maximize the use of CRM tools for customer engagement and service prioritization based on the financial status of the customers.