A Dissertation Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Science in Accounting and Finance (MSc-A&F) of Mzumbe University.The world has undergone rapid changes for the past two or three decades due to technological advances. Banks in the industry are in a stiff competition with each other to gain a greater slice of the market share, and with the globalization effect banks are finding it difficult to meet the high growth of customer expectations. Banks have realized that the magical formula for attaining success in such a competitive environment is to enhance its’ relationship with customers leading to customer loyalty and retention. Customer Relationship Management involves organizing activities around the sole customer which can ensure differentiation at each point of sales by creating a unique customer experience. But in reality since the word customer is associated with CRM, many banks are under the misconception that they secure competitiveness by implementing CRM. As such the main objective behind this study is to analyze the contribution of CRM in the performance of the banks in Tanzania. To achieve this objective, the research design will consist of both exploratory and descriptive research. Different aspects with regards to CRM in the banking sector have been extracted from literature review and tested on a sample size of 50 employees and 50 customers. Research Findings were discussed and analyzed so as to get an indication of how far CRM is strategically implanted to secure sustainable bank performance or it’s just as an old wine in a new bottle concept. Based on the findings, a set of recommendations has been made so as to pinpoint how CRM can be used to improve banks performances in the sector. Finally a model has proposed a layout for specific issues which banks have to address so that CRM can be used as an integrated approach to enhance performance of a particular bank in the banking industry.