Customer Relationship Management and Customer Retention.
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Date
2023
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Abstract
Grain millers continue to experience an increased loss of competitive grain markets from large customers especially wholesalers. The purpose of the study was to examine the relationship between customer relationship management (CRM) and customer retention. The study was guided by four objectives namely; to examine the relationship between Knowledge Management and retention of wholesale customers, to establish the relationship between Technology-Based CRM and retention of wholesale customers, to examine the relationship between Key Customer focus and retention of wholesale customers and to examine the relationship between CRM organising and retention. A cross-sectional survey design and a quantitative approach was employed considering a sample size of 169 out of a population of 300 wholesale customers of grain millers using simple random sampling procedure. A close ended questionnaire anchored on a six likert scale was employed to collect primary data and out of a sample of 169 wholesale customers in Kampala district, 105 responses were obtained, making a response rate of 62.1%. SPSS version 25 software was used to analyse both descriptive and inferential statistics. The findings suggest a significant positive association between CRM dimensions (CRM Organizing, CRM Based technology, knowledge management and key customer focus) and customer retention. Multiple regression results suggest that all dimensions of CRM (CRM Organizing, CRM Based technology and key customer focus) except knowledge management have significant influence on customer retention. Key customer focus was found to be the greatest predictor followed by CRM organising and the last being the CRM based technology. Multiple regression results further indicate that predictors in the model explain a variation of 58.9 percent and the other 41.1 percent are to be explained by other factors. The study concludes that it is very vital to have a firm CRM in place as it builds a strong long term relationship with customers who in turn make customers repeat purchases and have a positive word of mouth. The study recommends that customer relationship management policies that aim at improving customer retention should be put in place to ensure that employees in the respective grain milling companies implement and fully adhere to the set policies.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN A).
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Rashid, J . O (2023) Customer Relationship Management and Customer Retention : A Case of Grain Millers in Kampala. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.