The study explored how relationship marketing impacted on customer loyalty in the service industry in Uganda.Using Centenary Bank, Makerere Branch as a case study, the study focused on how customer knowledge of the bank’s market planning and staff interaction with customers enhanced customer loyalty towards the institution. It deployed a cross-sectional, correlational and quantitative survey design to correct data from a total of 63 respondents, namely, 49 customer, 7credit officers and 7 tellers of Centenary Bank,Makerere Branch.Using correlation and regression analysis, the study established a positive and highly significant relationship between relationship marketing and customer loyalty generally.
The calculated Pearson correlation coefficient value of r = 0.399 at significance level = 0.001, which was below 0.01 the critical level of significance, revealed that there is a moderate positive relationship between relationship marketing and customer loyalty in centenary Bank, Makerere Branch. However, in respect to specific aspects of relationship marketing, the study found a weak positive relationship between market planning and customer loyalty. This was at Pearson correlation coefficient value of r = 0.365 at significance level = 0.003 which was below 0.01 the critical level of significance for such findings.
A similar value was calculated in respect to staff-customer interaction and customer loyalty, which confirmed that there is a weak positive relationship between staffcustomer interactions and customer loyalty in Centenary Bank, Makerere Branch.
Therefore, the study concludes that in spite of its challenges, namely the weak but positive Pearson correlation coefficient values, relationship marketing is a useful tool that banks like Centenary Bank can use to initiate and sustain customer loyalty to their brands and services.