ABSTRACT The purpose of the study was to determine the relationship between relationship marketing and custdmer retention in the bank, case study of City branch Kampala Uganda. The objectives of the study were to determine the level of relationship marketing in City branch, identify the challenges in adopting relationship marketing practices, to identify strategies for enhancing customer retention, determine the relationship between relationship marketing and customer retention and to identify the other factors that are affecting customer retention in city branch. This study was a cross-sectional survey undertaken among city branch customers and employees. A survey of all city branch employees and customers’ was undertaken, Purposive random sampling was used to pick the respondents. This formed the sample size of eighty eight (88) respondents who were administered with the questionnaire. The study used primary and secondary data. Primary data was collected using questionnaires. Secondary data was gathered by a review of existing materials on the topic under study and the information about Ugandan banks. Data was coded and analyzed with the aid of Statistical Package for Social Sciences (SPSS). The analysis involved descriptive statistics and content analysis. The study found that the bank has applied Relationship Marketing (CRM) practices to a great extent,this was indicated by a 8(10%) of the respondents. The findings indicate that customer retention strategies are present and enhanced to a great extent as indicated by 26(33%) of the respondents. From the findings, it emerges 1:hat there is a relationship between the variables to a moderate extent as indicated by 34(44%~ of the respondents. The study further found that there are other factors affecting customer retention besides relationship marketing to a moderate extent as indicated by 4(5%) of the respondents. The study also recognizes the need for players in the banking industry to consult with the policy makers and participate in the creation of the policies to enable the effectiveness of the financial systems.
