Thesis:

Assessment of customer relationship management on growth of southern star Sacco in Tharaka Nithi county, Kenya

This study assessed the impact of Customer Relationship Management (CRM) practices on the growth of Southern Star SACCO in Tharaka Nithi County, Kenya. Southern Star SACCO has exhibited notable growth in membership, assets, and financial performance, making it an ideal case for analyzing the strategic value of CRM. The study specifically examined the effects of member engagement, personalization of services, and feedback mechanisms on SACCO growth, while also exploring the moderating role of SACCO size. The study was anchored on tree main theories; Conversion Model Theory, Social Exchange Theory and Holistic Approach Model Theory. A descriptive research design was employed, and data were collected from 355 respondents, representing an 89.42% response rate. Quantitative methods—including descriptive statistics, multiple regression, and diagnostic tests—were used for analysis with the help of SPSS. The findings revealed that CRM practices significantly influence SACCO growth, with personalization of services showing the strongest positive effect (β = 0.655, p < 0.001), while feedback mechanisms had a negative but significant impact (β = -0.412, p < 0.001). Member engagement, although positively correlated in descriptive analysis (r = 0.952), did not yield a significant coefficient in the regression model. Diagnostic tests confirmed the model’s robustness, with acceptable collinearity statistics and normally distributed residuals. Furthermore, SACCO size was found to significantly moderate the relationship between CRM practices and growth (β = 0.333, p < 0.001), indicating that larger SACCOs benefit more from CRM interventions. The study concludes that Southern Star SACCO should prioritize personalized services and revamp its feedback mechanisms while continuing to nurture member engagement. It recommends the implementation of tailored service delivery, transparent and responsive feedback loops, and CRM capacity-building—especially for smaller SACCOs. These findings offer actionable insights for SACCO management and policymakers seeking to enhance growth through strategic CRM deployment.