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Metropolitan Journal of Academic and Applied Research

Customer Relationship Management And Customer Retention: A Case Study Of Centenary Bank

Authors: Dr Arinaitwe Julius1 , Asiimwe Isaac Kazaara2

Journal: Metropolitan Journal of Academic and Applied Research (MJAAR)

Volume/Issue: Volume 5 - Issue 6

Published: 06 Jul 2026


Abstract

This study examined the influence of Customer Relationship Management (CRM) practices on customer retention at Centenary Bank, Uganda's leading microfinance-oriented commercial bank. The dimensions of CRM investigated included service quality, customer communication, complaint handling, and customer loyalty programs. Using a crosssectional survey design, data were collected from 150 bank customers and 30 bank staff using structured questionnaires. Descriptive, correlation, and regression analyses were conducted using SPSS. Findings revealed that CRM practices were significantly and positively associated with customer retention (r = 0.714, p < 0.01). Regression results showed that service quality (β = 0.341, p < 0.001), customer communication (β = 0.289, p < 0.01), and complaint handling (β = 0.251, p < 0.01) were significant predictors of customer retention, collectively explaining 67.3% of variance (R² = 0.673). The study concludes that CRM is a powerful driver of customer retention and recommends that Centenary Bank strengthen its service quality standards, invest in digital communication platforms, and institutionalize a proactive complaint resolution framework.
Keywords

Customer relationship management, Customer retention, Service quality, Complaint handling, Centenary Bank, Uganda

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