DIGITAL MARKETING TECHNOLOGIES AND CUSTOMER RETENTION AMONG UPPER-STAR HOTELS IN KAMPALA CAPITAL CITY AUTHORITY

Abstract

Customer retention is a substantial problem all over the world in all industries. The problem is further impairing to the performance service intensive sectors such as upscale hotels. This study explored the relationship between Digital Marketing Technologies constructs namely; Customer Relationship Management systems(CRM), Social Marketing, Email marketing, and Artificial Intelligence marketing tools (AI) on Customer retention in upscale (4- and 5-star) hotels within the Kampala Capital City Authority (KCCA). A quantitative research design was employed, with structured questionnaires distributed to a sample of 140 hotel employees from the 13 upscale hotels in KCCA, selected via a combination of purposive and snowball sampling technique. Data was analyzed using statistical methods to examine the relationship between the dimensions of digital marketing technologies and customer retention. Finings revealed a significant positive correlation between digital marketing technologies and customer retention, with email marketing, and Customer Relationship Management systems exerting the most substantial positive effects on increasing customer retention. Social Marketing showed a moderate positive impact and AI tools showed a positive and non-significant effect on customer retention . The study concludes that integrating advanced digital marketing technologies is crucial for enhancing customer retention in Kampala’s upscale hotel sector. Recommendations include targeted investments in digital training for staff, platform optimizations, and data-driven campaigns to strengthen guest relationships and competitive positioning in the upscale hotel market in Kampala Capital City Authority.