Abstract

The rapid evolution of the global financial services sector has compelled Deposit Money Banks (DMBs) to rethink how they build and sustain customer relationships. This study examined the effect of Customer Relationship Management (CRM) Systems on customer retention in Deposit Money Banks in Enugu State, Nigeria. Specifically, the study examined the effects of customer data management, service automation, customer interaction management, complaint-handling systems, and CRM analytics on customer retention. A descriptive survey design was adopted, with a target population of 698 staff from five selected banks. A sample of 248 respondents was drawn using stratified sampling and Bowley's proportional allocation. Data were collected through structured questionnaires, and analysis employed regression and z-test at 5% significance level. Findings revealed that all five dimensions of CRM systems had significant positive effects on customer retention: customer data management (R²=0.881, p=0.002), service automation (z=17.12, p=0.003), customer interaction management (R²=0.517, p=0.003), complaint handling systems (z=9.16, p=0.002), and CRM analytics (R²=0.891, p=0.002). The study concludes that CRM systems are strategic assets that significantly enhance customer retention in Deposit Money Banks. Recommendations include investing in robust data management platforms, upgrading automated service channels, implementing integrated interaction management systems, establishing clear complaint resolution processes, and deploying advanced analytics capabilities