The Influence of Relationship Marketing Strategies on the Performance of Commercial Banks in Tanzania
Keywords:
customer relationship management, performance of commercial banksAbstract
Abstract
This paper examined the relationship between customer relationship management strategies and the performance of commercial banks in Tanzania. The study used primary data collected using a questionnaire from randomly selected 100 respondents, who were bank officers from 10 commercial banks. Data were analysed descriptively and by regression analysis. Results show that commercial banks are applying different methods of customer relationship management strategies, including customization, partnership, employee satisfaction, interactive management, key account management and attracting and maintaining the right employees. The results further show that the absence of frequent information upgrading, inadequate funds, absence of qualified workers, inadequate commitments by management, and the absence of proper information systems were the challenges limiting full application of customer relationship management strategies. It was generally observed that there is a positive relationship between customer relationship management strategies and bank performance. In this case, the use of customer relationship management strategies contributes to banking performance. However, identified challenges should be addressed by commercial banks to take advantages of benefits associated with customer relationship management strategies.
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