Challenges of implementing customer relationship management in the Ugandan banking sector; case study of Centenary Bank

Abstract

This study looked at the challenges of implementing Customer Relationship Management in the Ugandan banking sector using a case study of Centenary Bank headquarters which is located at Plot No.7 Entebbe Road, Talenta House in Kampala. The objectives of the study were to identify the challenges faced by commercial banks in respect of customer relationship management, to examine the causes of the challenges of customer relationship management in banks in Uganda and to identify the strategies of improving customer relationship management in banks. The study used both quantitative and qualitative research methods using a cross–sectional design. This design was chosen because it had the ability to produce data required for qualitative analysis, allowing simultaneous description of views, opinions, perceptions and beliefs at a single point in time. The main data collection instrument was a questionnaire which was supplemented by an interview guide. The study findings revealed that there is a need of Educating customers on products and services offered by the bank, institute sound staff measures, avail information about bank operations to customers, and institute customer care desks where they have never been before. It was concluded that the causes of poor CRM comprised of high bank staff turnover, limited staff empowerment, bad staff attitude, culture of giving poor service, staff laziness, individualism and pride of some bank staff, very poor work ethics, delayed decision making , among others. Basing on the findings from the study, the researcher makes some recommendation to the bank management that will steer the successful implementation of customer relation management systems. The bank should endeavor to motivate front managers as well as orient junior staff in offering the very best customer service and hence the relationship; conduct several periodic staff refresher courses and workshops to refresh their staff on customer relationship management; put in place suggestion boxes for both its clients and staff so as to obtain valuable suggestions in customer relationship management.