Customer relationship management and banking profitability in Tanzania: the case of selected commercial Banks.

The study intended to conduct assessment on the influence of customer relationship management on bank profitability in Tanzania. It was guided by three study hypotheses as assumptions on bank profitability which are customer increase, customer retention and sales promotion. The study was performed quantitatively using explanatory study design through causality test approach whereas five commercial banks were picked as unit of analysis for the generation of adequate primary data to fill the study gap. The established hypotheses were to see the extent to which customer increase, customer retention and sales promotion influence profitability on commercial banks. Data were collected using questionnaires whereas the information collected were all filled in SPSS data for the generation of analytical tools to present the findings. With that, descriptive statistics specifically mean and standard deviation were first produced and present information on profile of the respondents. Causal relationship analysis was presented by correlation and multiple regression analysis on all study hypotheses on the dependent variable as well as independent variables. Findings showed the fact that banking profitability through customer relationship management (CRM) is positively determined by several factors including customer increase, customer retention and sales promotion respectively. Moreover, the study recommends that customer relationship management (CRM) is a practice which needs to be well embraced to assure performance in commercial banks since it has implications on profitability of the entities.