STRATEGIC CUSTOMER RELATIONSHIP MANAGEMENT ON PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN RWANDA

Globally, the use of customer relationship management as a strategic approach has become increasingly popular and that trend shows no signs of changing when it comes to performance of micro finance institutions at large. It is critical for micro finance institutions to understand how strategic and customer-centric CRM can support their efforts to achieve their corporative objectives. Thus, this study offered a detailed overview of how customer relationship management effects performance of micro finance institutions in Rwanda. The purpose of this study was to assess the effect of strategic customer relationship management on performance of micro finance institutions in Rwanda. The study adopted a cross sectional survey which was descriptive in nature. This study used positivism research philosophy. The target population for the study comprised of the MFIs managers and some selected employees of the 21 Micro finance intuitions in Rusizi District. Stratified sampling was used to divide the target group into four strata. Purposive sampling was used to ensure that the elements in each stratum had certain characteristics relevant to the study. A pilot study was undertaken on four (4) firms to test the reliability and validity of the questionnaire. Data for the study was collected by use of questionnaires, interviews and observation using descriptive and inferential statistics. Data collected was analyzed through SPSS version 21. Data for the study was collected by use of questionnaires, interviews and observation using descriptive and inferential statistics to establish the relationship between the dependent and independent variable. The findings revealed that the coefficient of determination (R 2 ) of 0.44, which meant that this variable alone explained up to 44.0% of the variations in the dependent variable, performance of micro-finance institutions in Rwanda . This implied that there exists a positive significant relationship between strategic customer relationship management and performance of micro-finance institutions in Rwanda. The hypothesis was tested by using multiple linear regressions and determined using p-value. The acceptance/rejection criterion was that, if the p value is less than 0.05, we reject the H A but if it is more than 0.05, the H A is not rejected. Therefore, the alternate hypothesis was that there is significant influence between strategic customer relationship management on performance of micro finance institutions in Rwanda. Results showed that the p-value was 0.00. This was supported by a calculated t-statistic of 3.616 that is larger than the critical t-statistic of 1.96. The alternative hypothesis was therefore not rejected. The study therefore adopted the alternative hypothesis there is significant influence between strategic customer relationship management on performance of micro finance institutions in Rwanda. The findings confirmed that Strategic Customer Relationship Management has significant influence on performance of micro finance institutions in Rwanda hence the need for organizations to consider use of good management practices to be able to focus on the organizational learning that may impact on the micro finance institutions in Rwanda. The study therefore recommended the micro finance institutions in Rwanda to consider adoption of good strategic Customer Relationship Management and review of policies related organizational learning from time to time to enhance their performance. Keywords: Strategic Customer Relationship Management, MfIs, Performance, Rwanda CITATION: Venuste, N., Iravo, M. A., &amp; Namusonge, G. (2021). Strategic customer relationship management on performance of micro finance institutions in Rwanda. The Strategic Journal of Business &amp; Change Management, 8 (2), 369 – 376.