Enterprises are straggling to effectively utilize the modern marketing and advertising disciplines to highly compete in today’s competitive and changing work environment. The purpose of this study was to examine the effect of customer relationship marketing on customer retention in Uganda. The study was guided by three objectives namely; to examine the effect of continuous customer monitoring on repeat purchase, to examine the effect of customer life cycle on customer trust and to examine the effect of customer satisfaction on repeat purchase at source of the Nile hotel Jinja. The study adopted marketing theories and a descriptive survey design with a population of 30 respondents. Questionnaires were the main data collection instrument. Data collected was analyzed and recorded using statistical packages and reported in form of tables indicating frequencies and percentage. The study findings indicate that customer relationship marketing positively affects customer retention through customer satisfaction, customer monitoring and customer life cycle. The study recommends that source of the Nile hotel should increase on the number of its employees who are responsible for monitoring, managing and responding to customers, to effectively promote and brand the organization through creating a standard logo for the organization and put more outlet shopping centers and customer service centers for effective management of customer complaints and satisfactions.