Influence of Customer Relationship Management on Customer Retention in the Banking Sector in Tanzania

Influence of Customer Relationship Management on Customer Retention in the Banking Sector in Tanzania

Boniphace D. Malima^*, Crispin John Mbogo

Accounting and Finance Department, St. Augustine University of Tanzania

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.803189

Received: 08 March 2024; Revised: 23 March 2024; Accepted: 28 March 2024; Published: 23 April 2024

ABSTRACT

This study aims to assess the influence of customer relationship management on customer retention in the banking sector in Tanzania with particular reference to Tanzania Commercial Bank (TCB). In this study, customer relationship management was measured by customer complaint handling and improved customer service quality. The study employed mixed method research design were qualitative and quantitative methods were used. The study gathered data from 100 respondents through structured questionnaires and interview. The collected data were analysed by SPSS 24.0 for giving out results that were really presented through descriptively and inferentially statistics. However, the respondents’ profile was analysed with descriptive analysis with the help of frequency table and percentages. On other hands the relationship of the study variables was performed by correlation and multiple regression analysis. Data obtained using interviews were transcribed and interpreted using content analysis. The study findings revealed that customer complaint handling and improved customer service quality have positive and statistically significant effects on customer retention in TCB. This implied that customer retention in the banking industry is influenced by customer relationship management practices assessed in this study. The findings of the study showed that the predicting variables of the study; improved customer quality service and complaint handling have a statistically positive and significant influence on customer retention in banking sector in Tanzania.

Keywords:  Customer Relationship Management, Customer Retention, Improved Customer Quality Service, Complaint handling

INTRODUCTION

Customer relationship management (CRM) is the combination of practices, strategies and technologies that companies use to manage and analyse customer interactions and data throughout the customer life cycle, with the goal of improving customer service relationships and assisting in customer retention and driving sales growth (Nataraj, 2010). Soltani et al. (2018) claim that customer relationship management practices are very important and growing business practice in today’s business environment. CRM is mainly for interaction management between a company and its future and current customers by focusing intentionally on retaining potential customers; therefore, promote company’s buying growth.

Due to aggressive market competition in marketing, some service sectors, such as the hotel sector and banks, adopt new strategies, such as customer relationship management, to assist employees, serve customers better and improve customer retention (Mohammed et al., 2017). Banks are currently facing significant environmental, social, and economic challenges in both developed and developing countries worldwide (Solangi et al., 2019). This draws increased emphasis on effective customer relationship management due to more intensified competition in the banking industry. Tronvoll, (2012) asserts that the demand for advanced technology and globalization the globalization growth there has been rapid increase in business competitiveness in the environmental marketing that leads the need for companies to adopt different retention strategies to stay competitive.

Moreover, Komunda & Oserankhoe (2012) commented companies must struggle to influence new potential customers and retain existing ones that may help to increase market share and profitability. Additionally, in maintaining new and existing customers the service providers must adopt strategies that enhance customer complaints accordingly. This reiterated by another study that found that in low-income countries, foreign banks usually reduced their domestic credit more than domestic banks did. Thus, the importance of local banks to a developing economy can never be emphasized. Therefore, domestic banks are very important in generating local business hence are important employers to corporate engage citizens in meaningful corporate social responsibility to uplift their life and socio-economic life standards (Pelletier, 2018).

The previous studies revealed three aspects that bring about a continued relationship between a bank and its customers: customer satisfaction, customer loyalty, and customer retention. Only a satisfied customer will be loyal enough for retention. Heffernan et al. (2008) state that since banks offer financial products that they cannot distinguish, bank customers cannot make objective evaluations between banks, hence the importance of the intangible asset of customer trust displayed through their loyalty. Ferguson & Hlavinka (2007) indicate that the competition in retail banking coupled with very low levels of differentiation urges banking marketers to look into ways of understanding the foundations of customer loyalty to help them expand on programs geared towards building longstanding relationships with customers. Sisay (2020) defines customer complaint as a customer’s expression mainly caused by dissatisfaction in the course of products/ services pre-purchase, in purchase and post purchase situations. Tronvoll (2012) refers to them as customers’ reports that may be formal or informal regarding a products/services problem. Importantly the way a company handles company complaints can affect its business success in either for the short term or long term (Robert, 2011).

Poor customers’ complaint handling procedures may have a great influence on damaging company-customer relationships that may lead into customer dissatisfaction and promote negative word of mouth hence may refrain potential customers for doing repurchase with the business company in the long run. Also, poor handling customer complaints may lead into poor customer loyalty and significantly short life-stay with such a company. However, Awara (2010) explains that if any business entity practices poor customer complaint handling ultimately it will suffer much the consequences of losing potential key customers, thereby losing its market share will shake promptly.  Moreover, service providers are trying to recruit new customers through marketing effective strategies of promotions which are always more cost fully still they can reduce such costs by focusing on retaining the existing customer they have in a pool and maintain their profitability. Furthermore, Robert (2011) commented that upon customers retention through customer complaint handling procedures, satisfaction is increased while customers attrition is reduced to the great extent and goodly the sales figures are boosted and customer loyalty is cultivated. Also many studies have proposed different methods of procedures on dealing with the customer complaint handling mechanisms without affecting the sellers-buyers relationships.

Gelbrich & Roschk (2011) studded and analysed company complaint handling procedures and their effect on prospective customer response. The study showed that understanding, taking care of customer complaints, and gathering relevant facts for the particular complaints and accompanied by effective solutions was among of a very effective complaint handling procedure. Tronvoll (2012), however, strongly recommended that complaint-handling procedures are of different and each companies have ways of identifying and settle them smoothly without bringing significantly effects to their valued customers in the service chain. Komunda & Oserankhoe (2012) advocate that the organisation must establish a comprehensive customer complaints management system that can help solve all the main customers’ complaint handling procedures and making customer satisfaction checks as well as the satisfied customer feedback acquisition

The study in Malaysia by Marsudi and Pambudi (2021) on customer relationship management revealed that banking is required to be able to facilitate customers by providing services; the emphasis is on increasing the value of customer satisfaction; hence, customer relationships lead to success for long-lasting cooperation in the future and loyalty to the business in the future. Furthermore, Elissawi et al (2012) condemned that in Egypt, the banking industry utilizes an effective banking system by implementing electronic customer relationship management in banks. In the cut throat competition banks should have customer loyalty programs that attract new customers and retain them for long-life beneficial business through customer relationship management practices hence domestic banks must work effectively in retaining their customers.

Moreover, some banks in Tanzania give more emphasis to use expensive strategies to attract new customers instead of developing new modern customer retention strategies. This creates main problem in the competitive environment because the likelihood for   customers to leave the entity is very high whenever not satisfied with the provided services. Unfortunately, the banking industry provides almost identical services making it very easier for customers to switch from one bank to another. However, a few studies (Kapologwe, 2013; Kaluza, 2015) on Tanzanian financial institutions find that customer relationship management practices are one of the strategies currently being used by banks to respond to market competition to attract and maintain new and existing customers. Both found that customer relationship management aims at finding the potential of marketing relationship strategies and information to create long term profitable customers of banks.

LITERATURE REVIEW

Definition of key terms

Customer Relationship Management

Are all programs that allow the services providers to identify, communicate and establish long-term mutual relationships most potential key on customized and on an individualized caring level (Laketa et al., 2015). It is however an integrated approach that focus mainly for cultivating sellers-customers relationships by focusing on creating attractive programs that motivate customers to stay for long to the same supplier (Catalán, 2012). The practices focus on creating, controlling and maintaining the strong bonds of customer-seller to maximize organisations’ profits from each customer.

Customer Retention

Customer retention refers to process that engage potential prospect and existing customers to continue having buying habits of products or services of a specific business entities (Mosoma & Mfundiri, 2021). It’s the outcome of well understanding customers’ needs and developing services that will satisfy their needs and build long-term relationships with the organization (Abbas & Hafeez, 2017). Moreover, many business entities believe it work well to bring competitive advantages in these hardly competitive environments where customers are free to choose the reliable sellers and stay for long period of time.

Complaint handling

It’s the fast-acting ability of service providers to avoid customers’ potential conflicts before they create problems that destruct seller-customers interactions (Mornay, 2011). They all relate to how companies deal with service failures while dealing with their customers. Moreover, Mahmoud et al. (2018) states that customer complaint handling had a direct significant effect on customer retention. Most dissatisfied customers feel to leave the service providers and search for others that will satisfy their commercial needs on time.

Improved Customer Quality Service.

These are all mechanisms that enhance customer service quality. It involves well understanding customers, organisation culture and empathy training. According to Alshamsi et al (2021), improved customer quality services attract more customers and make them attracted and committed to business entities in the future and drives company’s profitability.

Theoretical Framework

This study was guided by social exchange theory advocated by a famous Sociologist George Homans in 1958. The theory states that individual interactions expecting rewards and avoiding punishments and the continuous interaction will depend much of the rewards gained.  The theory also asserts that people tend to pursue relationships in an environment where rewards are greater than costs (net profit) and leave those where costs are greater than profits. The significance of taking social exchange theory in this study is that individual customers always tend to form a kind of relationship with service providers for the expectations of rewards.

The theory is directly connected to the current study in the way banking sector entities including Tanzania Commercial Bank tries to provide different forms of rewards (or favour able actions) to their customers. The reward provided cultivates loyalty and long stay with the service providers in today’s competitive banking environments. Cropanzano and Mitchell (2005) condemn that social exchange relationships cultivate trust, loyalty and mutual commitment when two or more parties abide by the rules of exchange. Moreover, Lambe (2001) explains that when organizational workers are in social exchange relationships with customers that tend to be more effective and positive and therefore engage in behaviours that are more positive during interaction with their customers. However, Cardy and Munjal (2016) depict that, employees should have basic knowledge, skills and experience to promote the core values and ethics of the organization through words and actions for customers during social exchanges.

Empirical literature reviews.

Sadek (2012) examined on the effect of customer relationship management components on customer retention of commercial banks in Egypt using quantitative approach. The study results showed positive relationship between customer relationship management and customer satisfaction in Egyptian commercial banks. The findings confirmed the importance of studying and implementing customer relationship management to achieve customer loyalty and improve Egyptian commercial banks.

Anees et al. (2020) studied the influence of customer relationship management (CRM) strategies on customer retention among Pakistanian restaurants with 220 samples and a questionnaire tool for data collection. The results revealed that quality services and customer orientation had a great influence on customer retention in the Pakistanian food supply chain. Siddiqi et al. (2018) examined the influence of customer relationship management on customer loyalty focused on private and public banks in Bangladesh with 210 respondents using descriptive analysis. The study unfolds the significant relationship between customer relationship management and customer loyalty.

Moreover, a study of Abbas and Hafeez (2017) in Pakistan banks reviews that customer relationship management practices have been found to influence both customer retention and improved the quality of services provided by organizations. Tauni et al (2014) assessed the influence of customer relationship management on customer retention in the telecom industry. The study conducted in Pakistan using questionnaires revealed that CRM helped companies build strategies that help in customer retention and loyalty.

Nwankwo and Ajemunigbohun (2013) examined the influence of customer relationship management on customer retention in Nigerian insurance industry.  The study used a literature survey and stratified random sampling techniques. The findings had a significant influence on customer retention in Nigeria’s insurance industry. Abbas and Hafeez (2017) investigated the influence of customer relationship management practices on service quality in the banking sector in Pakistan. The study used a survey design and the results indicated a positive significant influence on service quality.

Mensah (2016) conducted a study of the effectiveness of customer complaint handling and its influence on customer retention in Ghana. The study finding conducted through questionnaires. The general findings showed that customer complaint handling had a great influence on customer retention. Customers with unsolved complaints feel disappointed and are likely to leave such an organization in the future if they find alternatives. Azzam (2014) assessed customer relationship management on customer satisfaction in the Jordan banking industry. The study used self-administered questionnaires to collect field data. The statistical analysis supported that there is a significant positive relationship between CRM and customer satisfaction in Jordan banking industry.

Tesfaye (2018) examined the effect of customer relationship marketing on customer retention in the United Bank S.C. The study utilized both descriptive and explanatory research designs and primary data collected through questionnaires and analysed through both descriptive and inferential methods. The results indicated that customer relationship marketing has a significant effect on the customer retention in the bank.

Naume (2018) examined customer relationship management and profitability in the Bank of Kigali. The study utilized correlation and descriptive designs with the quantitative and qualitative approaches. The study concluded that good customer care and customer satisfaction lead to improved business entities performance. The study added that for organizations to improve their profitability while retaining their potential customers would best to practice CRM programs of attracting new customers. Abera (2021) examined the effects of customer relationship management systems on customer retention in commercial banks in Kenya. The study design and primary data were collected using structured questionnaires. The findings indicated that Kenyan commercial banks adopted customer relationship management have improved their overall interactions with their customers.

Malik, (2015) investigated the influence of customer relationship management on customer loyalty and customer retention in the banking sector in India, and the results showed that customers are mostly attracted through on-time service delivery, helpfulness, and promptness in handling their challenges. Customer loyalty can be measured in terms of recurring purchases, ignoring negative what other customers talk on companies and willingness to make referrals. Therefore, banks must manage customer complaints to achieve customer satisfaction and increase retention (Abu-Salim et al., 2017).

In addition, Johnston et al (2001) links complaint management to profit, and his study mentions that complaint management must aim to execution of the services improvement and therefore the attainment of customers’ satisfaction. Most organizations may ignore the operational systems of dealing with complaints handling and therefore concentrate more on many tracking them only without solving their reoccurrence. Using data from an empirical bench marking study in 40 UK organizations showed that is a significant relationship of the key variables such as complaint processes, satisfaction, employee attitude retention and financial performance of the business entities. From the results all variables in the study model were established for mechanism. The study suggested that organisation may improve financial progresses better by bringing about complaints tracking systems, customers’ retention programs and friendly employees willing to orient customers in a professional trying to satisfy their customers.

Research gap

From literature reviews, studies on customer relationship management and customer retention have focused on different sectors in Western and Middle Eastern countries. In Tanzania, few related studies have been focused on private banks to assess customer relationship management on customer retention and the importance of customer relationship management practices in the banking sector in Tanzania.

However, very little studies have investigated on influence of customer relationship management on customer retention in government banks in Tanzania. Therefore, this study filled this gap by conducting influence of customer relationship management on customer retention in government banks. The focus is on Tanzania Commercial Bank (TCB) and adds value to the literature reviews in the context of the Tanzanian banking industry.

Conceptual Framework

It is a road map that the study aiming at looking for answers to the problems raised by the research questions. It gives cause-effect relationships between the independent and dependent variables of the study. The conceptual model (Figure 1) in this study describes how complaint handling and customer service quality as indicators of independent variable influence customer retention as the dependent variable.

      Independent variable                                                            Dependent variable

Figure 1: Conceptual framework of the study

RESEARCH METHODOLOGY

The study employed both quantitative and qualitative designs (mixed methods). The design was selected due to the pattern of knowledge generation was undertaken using both quantitative and qualitative research methods. Roller and Lavrakas (2015) note that research design is the plan to conduct the proposed research with all methods, modes and scopes. The study approach used was mixed method as it focused on what and how regarding the phenomenon under study.  The mixed-method aimed to envisage the hybrid between what, when and where as well as why and how all together regarding the phenomenon under study.

The study was conducted in Tanzania Commercial Bank because it is oldest bank and purely owned public financial institution where the government of Tanzania is a major shareholder that provided date were adequately. The area selection was because it is the most business region with many customers and banks that create stiff competition in the banking industry. The study collected primary data from the field through the selected respondents. The study used the customers of Tanzania Commercial Bank. The study used total number of 100 respondents selected from the study area out of 1130 of the targeted study population. The study used 100 participants as sample size because they were very sufficient to provide the useful desired information of the study. The study employed simple random sampling to enable each sample of the population to obtain an equal chance to participate in the study. The method also gave better chances for each member of the population to participate in the study.

Structured questionnaires were used to collect data from the respondents in the field. They were equally distributed among the study respondents to fill in the required basic information intended by the researcher. The method of gathering data were preferred because the study needed quantified data from respondents and reduces the costs and time. The study applied both reliability and validity for data quality assurance measurements. The study data validity was tested through pilot approach testing questionnaires till got approval from supervisor for the data collection. However, the reliability was also taken into account to assure the consistency of the variables under the study. The study used Cronbach’s alpha test which intended to measure internal consistency because is the most common form of the internal consistency reliability coefficient.

Table 3.1: Cronbach Alpha Test

The findings shows that the alpha coefficients of each study variable exceed 0.7 making them reliable and consistency hence useful for further analysis. Nimako (2012) suggests that once the values of Cronbach Alpha coefficients are 0.7 and higher, the measurement entails that they are reliable and consistent. The outcome of the study variable in the table above reveals that the constructs are reliable with a high level of consistency.

DATA ANALYSIS AND DISCUSSION

The collected data from the field were analysed quantitatively and the results were statistically described and variables were correlated and multiple regression analysis were both applied to give statistical relationship within study variables. The study variable relationship were necessary to provide the proved reasons of undertaken study. Descriptive statistic with the help of frequency tables and percentage used to describe demographic profile of respondents the stud selected.

FINDINGS AND DISCUSSION

The section describes the profile of Tanzania Commercial Bank customers based on their demographic characteristics as gender and education levels of each the respondents involved in this study. Therefore table 5.1 shows the results obtained.

Table 5.1: Respondents Profile

Source: Field Data (2023)

The results in Table 5.1 describing customers’ profile of Tanzania Banking sector with a reference to Tanzania Commercial Bank. From the above table the findings revealed that the gender of the study respondents, 69% were male and 31% female. The implication of the findings is that customers of the bank are both women and men. This finding is supported by Abbas and Hafeez (2017), suggesting that customers of the banks are all individuals as being men and women if the services are available.

Moreover, with the age of the respondents, the results showed that 12% were aged 21-35 years, 29% of the respondents were aged 36-50 years, 36% of the respondents were aged 51-65 years and 25% were above 65 years. The implication of the findings is that bank customers indeed comprise people with different age groups from the young age towards adulthood. This is supported by Alemu et al (2018), who suggests that customers of the banking sectors are individuals with different age groups.

For education levels the study indicated that 2% of the respondents had secondary education, 14% of the respondents had certificate education, 21% of the respondents had diploma education, 38% of the respondents had first degree, and 25% of the respondents had postgraduate level. This implies that bank customers comprise individuals with varying levels of formal education, including those with no formal education at all. This is acknowledged by Abera (2021), suggesting that banks accept customers regardless of their level of education if they meet legal criteria and requirements.

Customer Complaints Handling on Customer Retention

The section presents results on the influence of customer complaint handling on customer retention through the below table.

Table 5.1: Customer Complaints Handling

The findings revealed that customer retention in the banking sector through customer relationship management is influenced by customer complaint handling in the sector entities. This is the case because 89% of the respondents are satisfied with the way bank employees treat their customers. In addition, respondents as customers are happy with the way banks handle lodged complaints. Nevertheless, 81% of the customers reveal that they have the opportunity to lodge their complaints with management. Furthermore, 75% of the customers are satisfied with the actions taken by banks to solve their complaints. Moreover, 85% of the employees reveal that they are satisfied in the way that bank employees show readiness to discuss when problems arise.

Improved Customer Quality Service on Customer Retention

The section describes the influence of improved customer quality services on customer retention through customer relationship management described in Table 4.2.

Table 5.2: Improved Customer Quality Service

The findings reveal that customer retention through customer relationship management (CRM) is influenced by improved service quality; 84% of customers suggest that they become customers to banks with adequate customer care provision. In addition, 91% suggest that bank employees are highly willing to help and assist customers pertaining to the service delivery process. Additionally, 79% of the customers agreed with the assertion that bank employees are able and capable of providing adequate services to customers. Furthermore, 79% of the customers reveal that they are confident with the employees of the banks to inspire trust and assure confidence to the customers. Moreover, 84% of the respondents are convinced of the bank employees regarding the performance of the promised services.

Analysis of the Study Variables

Study findings collected from the field were described using mean and standard deviation and inferential analysis of correlation and multiple regression analysis were performed.

Mean and standard Deviation

The analysis was performed to show the most influencing indicators of independent variable towards the dependent variable of the study based on the respondents’ level of opinions. The results of the analysis are well described in Table 4.3

Table 5.3: Mean and Standard Deviation

Table 5.3 highlights the results on mean and standard deviation. It is certainly that improved customer quality service has the strongest influence on customer retention compared to customer complaint handling with the higher score value of 3.672. The results imply that customer retention through customer relationship management in the banking sector in Tanzania is mostly influenced mostly by improved customer quality service rather than customer complaint handling. With standard deviation with values less than 3 implied that variance between study variables is not high and therefore respondents’ views were not that far from each other.

Inferential analysis.

This analysis is conducted to describe the relationship between the independent and dependent variable by applying correlation and multiple regression. Therefore the model summary proceeded first to determine the overall influence of customer relationship management customer retention. The model summary test and the results summary were shown in Table 5.4.

Table 5.4: Model Summary

Independent variable: Customer relationship management (Customer Complaint Handling and Improved Customer Quality Service)

Dependent Variable: Customer Retention.

The findings from Table 5.4 showed the overall influence of indicators of independent variable on the dependent variable through the R² testing. The model summary indicate that the main influence on customer retention in banks in Tanzania through customer relationship management was facilitated by customer complaint handling and improved customer quality service with R² value of 64%.

Correlation Analysis

Correlation analysis was conducted on the independent variable to determine the indicator variable with higher correlation and that influence the dependent variable more than others in the set of data. Therefore, the analysis results are well described in Table 5.5

Table 5.5: Correlation Analysis

The correlation analysis findings which are certain that the highest correlation value of 53.6% is on improved customer quality service. The implication of the findings is that customer retention in banks using customer relationship management in Tanzania is mostly influenced by improved customer quality service rather than customer complaint handling.

Multiple Regression Analysis

Multiple regression analysis was performed to show the contribution of each indicator of independent variable on the dependent variable. The findings were analysed as follows:

Table 5.6 Multiple Regression Analysis.

The values from multiple regression analysis show that all independent variable indicators; customer complaint handling and improved customer quality services are all statistically positive and effect on customer retention with a p<0.05. The findings signify that customer retention in banks through customer relationship management is well influenced by customer complaint handling and improved customer quality services.

Discussion

Customer Complaints Handling on Customer Retention

The study findings indicated that customer complaint handling has a positive and statistically significant effect on customer retention, with p<0.05 (table 5.6). This entails that customer retention in the banking sector is influenced by customer complaint handling. The statement aligns with Ginn et al. (2010), suggests that services providers should be creative to establish mechanism that facilitate customer complaint handling and enables customers to report easily whenever there is service failures.

Furthermore, Solangi et al. (2019) urge that customers in the process of service delivery encounter several shortcomings that cause chaos and feel disvalued and dissatisfied hence establishing complaints handling system is crucial to maintain them.

Improved Customer Quality Service on Customer Retention

The study revealed that improved customer quality of service positively and significantly influences customer retention by p<0.05 (table 5.6). This implies that commercial banks’ profitability is in line with customer relationship management influenced by customer retention. The claim is well connected with Adeyeye (2013), comments that service quality promoted by service providers always attract and build last longer relationship with customers. Mwikwabhi (2013) states that quality services plays a great role on customer retention in banking sector in Tanzania.

Nevertheless, Dvir and Gafni (2018) suggest that service quality is very important in businesses since it enables the realization of an increase in market share and consumption rate because of satisfaction.

CONCLUSION AND RECOMMENDATIONS

This study assessed the influence of customer relationship management on customer retention in the banking sector in Tanzania. The study were guided by predictor variables; customer complaint handling and improved customer service quality on customer retention in TCB.

This study had two literature reviews: theoretical and empirical literature reviews. In the theoretical literature review, the study reviewed social exchange theory that is based on the concepts that individuals’ interactions expecting rewards and avoiding punishments. According to this theory, people tend to pursue relationships in an environment where rewards are greater than costs (net profit) and leave those where costs are greater than profits.

The study was conducted using a mixed method approach through primary data gathered from the customers of Tanzania Commercial Bank. The study used structured questionnaire to gather information from the sample size of 100 respondents which were computed in SPSS software version 24.0. Descriptive statistics described the respondents’ profile while correlation and multiple regressions described the relationship between study variables.

The study findings revealed that independent variable indicators studied were positive and statistically significant on customer retention by p<0.05 (table 5.6). The implication of the findings was that customer retention in banking sectors through customer relationship management is well influenced by customer complaint handling and improved customer quality services.

Conclusion

According to this study’s findings, it is clear that customer retention in the banking sector through customer relationship management is influenced by customer complaint handling and improved customer quality services because they have been revealed to be statistically significant and positive for customer retention. Nevertheless, the market is still very competitive, and more banks are registered and open in the market as well as commercial banks and others; thus, it is necessary for banks to work on their strategies regarding customer relationship management (CRM) with the aim of achieving competitive advantage and market share generation.

Recommendations.

The reality is that customer relationship management is important since it plays a significant role in enhancing customer retention in the banking sector in Tanzania through customer complaint handling and improved customer quality services. In that case, the study recommends that customer retention, as the practice is important, could be embedded and included to assure the performance of the business entities at all times. This is because it is a mechanism to foster customer influence towards increase, retention, and promotion, which automatically fosters profitability through consumption of the products and/or services.

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