@CurliDiva are you natural or relaxed? What is your hair type/porosity?
My [personal, from my experience] recommendations:
Don't warm up/melt shea butter before using. You will use too much, absolutely. The state that it is in when you initially apply it changes as it returns to room temperature. This can result in unintentionally using too much. I promise, I've done this before - even my skin doesn't like melted shea butter. I look like I'm getting ready for an X-rated wrestling match.
Did you use a leave in after you washed and conditioned? I don't think some people need a leave in, but I personally have never applied it directly to hair without a leave in first. IMO, it's a sealant and a penetrating oil, so while I can use it on dry hair, I like to have something nice and slippery underneath. Then I like to add a bit of oil on top to loosen it up (as it can feel waxy) so that I can manipulate my hair afterwards.
I don't recommend applying shea butter (or really anything other than oil or conditioner) to dirty hair. Everything sits on dirty hair, for the most part, unless it has water as the first ingredient, and even still... I believe the most beneficial product application occurs on clean hair. I think perhaps using shea butter before you braid could make detangling easier after wards, but I wouldn't try to detangle hair with shea butter. I like to use warm oil and slide the shed hairs out with my hand, then add conditioner (still dry hair) and finish de-shedding in the shower. This is all before shampooing of course.
Lastly, it may simply just not work for you, and there's nothing wrong with that. Yes, you can whip shea butter alone for a smoother texture. I would
never put anything in my hair that has no ingredients listed. Or on my skin, or anywhere in my general vicinity. You just don't know what's going on with that. If it was marketed as a body cream, it could have water as a main ingredient, and I've read a lot of people don't like water-based leave-ins with shea butter at all! (I stay away from them, personally, they make my hair atrociously greasy). Even body butters that just have other oils in them make them greasy.
Anyhow, if you want to give it one last attempt, I would suggest starting at the bare minimum. I'm a fan of making one small change to my regimen at a time so that I can figure out what works and what doesn't work. So you could, for starters, try only using it on the last couple of inches of your wet hair as a sealant. I think it is beneficial to most people that way, even some Caucasian hair types enjoy using a dab of shea butter this way so that it is not so greasy and heavy. Then, see how that goes and re-evaluate.
I hope some of that helps. ^_^