Title: The Relationship between Customer Relationship Management and Business Performance: A Case Study of Commercial Banks in Uganda.
Authors: Babirye Shamirah, Zikusooka Enock
Volume: 9
Issue: 2
Pages: 42-47
Publication Date: 2025/02/28
Abstract:
This study aimed at examining the relationship between Customer Relationship Management (CRM) adoption and its impact on customer satisfaction, retention, loyalty, and financial performance in commercial banks in Uganda. The research utilized logistic regression analysis to assess the influence of CRM systems and strategies on key business outcomes. The findings revealed a significant positive relationship between the adoption and implementation of CRM systems and customer satisfaction. Specifically, CRM system implementation had the strongest impact (OR = 2.34, p < 0.001), suggesting that banks with well-implemented CRM systems were 2.34 times more likely to report high customer satisfaction. Similarly, staff training on CRM (OR = 1.86, p < 0.001) and the integration of CRM with other systems (OR = 1.57, p < 0.001) were also significant factors enhancing customer satisfaction. Furthermore, CRM strategies such as personalized customer services (OR = 2.46, p < 0.001) and CRM-driven loyalty programs (OR = 2.12, p < 0.001) significantly impacted customer retention and loyalty. The analysis also demonstrated that CRM adoption had a strong influence on financial performance, with the level of CRM adoption having the most substantial effect (OR = 2.59, p < 0.001). The findings confirmed the critical importance of CRM systems in enhancing business performance and suggested that Ugandan banks benefited significantly from investing in CRM technologies and strategies to foster strong customer relationships and achieve long-term profitability. Since cross-selling and upselling were significant contributors to profitability, banks should consider implementing CRM strategies focused on offering complementary products and services to customers.