Knowledge management and customer relationship

knowledge management and customer relationship

Knowledge management and customer relationships management: management of customer feedback. Eila Järvenpää. Professor. Helsinki University of. Request PDF on ResearchGate | Knowledge management and customer relationship management for accounting services companies | By combining the . sound customer relationship management (CRM) strategies that have an customer data and converting this data into valuable customer knowledge that can.

KM software tools often compile customer information across different points of contact between the customer and the business: Regardless of the tools or techniques used to manage knowledge, all KM initiatives share three common features: Is the goal to reduce operational costs?

Identifying priorities is essential so that the business can properly structure systems, tools and processes aimed at retaining and sharing the most critical information.

knowledge management and customer relationship

Regardless of how this is done, the critical knowledge must be stored in a location and format which can be easily found and accessed by users. All customer agents have access to the same product, service, and customer information. Therefore, no matter whom a customer may speak to, he or she is guaranteed to receive consistent answers.

KM is an integral aspect of customer relationship management. Through KM, a business can track the number of calls, emails, questions that have been asked and resolved, but also which issues are most frequently discussed. In this way, a business can see how customers typically interact with its products and services, providing opportunities for the business to make any necessary improvements. Knowledge management also increases customer satisfaction through self-service capabilities.

An FAQ page and personal account information can be included on a website, for example, thus eliminating the need to speak directly with an agent, helping customers get the answers they want, fast. Customer feedback tools further optimize KM. Feedback forms, such as online surveys or opinion polls, can be strategically placed on a website or included in an email.

This means collecting appropriate customer information, analyzing customer data, acquiring new customers, improving skills of employee, improving CRM technique, and secure service.

Customer knowledge in higher levels is the common interface of activity-based Knowledge Management and customer relationship management is at intermediate levels of the organization. CRM is based on the assumption that better customer knowledge makes for higher profits. This is achieved through the acquisition, creation, analysis and application of customer data such as Personal data, transaction data and soft facts, e.

The data allow companies to customize customer contacts and product offers, and thus achieve a higher service quality. Moreover, by using the data it would be possible to discover new customer needs and requirement. Creating additional value for customers also improves customer retention and loyalty [35]. Customers perceive value and service quality at the time of the service encounter [12], and their evaluations of service quality also involve evaluations of the process of service delivery [].

In other words, interaction with customers is the turning point of business activity towards customer orientation and customer relationship management. Consequently, by managing CI more effectively, a company can create customer value and operational excellent [40].

knowledge management and customer relationship

This created value will make new opportunities for profitability in the business. It is thus apparent that the highest priorities for any service organization must be a thorough understanding of customer needs and expectations, effective control of inputs, and successful operation of the service- provision processes.

Customer satisfaction is the main mission of the present organizations. Consequently, CS phase represents the level of satisfaction achieved by perceived value [8]. Perhaps customer satisfaction could be conceived as the most important stage in this model. Thus, the extended model aims to accentuate the essential benefits of the pursuit of customer loyalty. Therefore, customer value can be considered as the last segment in the model which links customer relationship management with knowledge management objectives.

So, this means improving Customer retention, profits increase, improving customer service and support, building an attractive virtual community.

KM as a tool for achieving objectives of CRM: Some KM scholars, such as Nonakadefine KM as the process of capturing collective expertise and intelligence of organization and using them to foster innovation. In this definition, knowledge management is defined from intelligence organization perspective in the Information Age. So, KM consists of the processes an organization uses to acquire, create, document, transfer, and apply customer knowledge to achieve organizational goals [17].

Tiwana views knowledge Acquisition KA as the process of developing insights, skills, and relationships, enabling Customers of organization to go through a process of self-renewal and expand its boundaries. Knowledge acquision is the main factor in achieving the objectives of the organizations and has a close relationship with customer knowledge.

Knowledge Documentation KD or codification refers to the mechanisms that an organization uses to institutionalize its customer knowledge so that it can be reused in the future. These mechanisms or forms, e. The recorded knowledge is vital in modern organizations which deals with the improvement of knowledge management systems and predicts future trends. Customer knowledge can be transferred through personal communication, codified communication, and embodied KT [1].

In knowledge Creation KC view, customer knowledge creation as processes that involve an ontological dimension, which is learning at the customers, group, and organizational level, and also an epistemological dimension, which includes the two complementary types of explicit and tacit knowledge [33]. Knowledge creation is performed in high, middle and operational levels of the organization.

Knowledge Application KP describes the methods and mechanisms that an organization adopts to use available knowledge to improve its processes, products and services []. To achieve the above mentioned goals of providing a solution for the process of the customers, enterprises need to 80 European Journal of Economics, Finance and Administrative Sciences - Issue 34 focus on three sorts of knowledge in CRM processes [10].

They make up what we consider to be customer knowledge.

The Integration of Knowledge Management and CRM for Intelligent Support

Efforts need to be made to channel this knowledge back into the enterprise. Therefore, Companies continue to use knowledge management as a process to achieve set of customer experiences []. Applying knowledge management to communicate with customers makes companies closer to customers and provides new opportunities for exhibiting the services and products [10].

So, organizations should reinforce their KM and CRM systems in a way that enables them to obtain value-added knowledge for their customers and themselves [39]. This integrates knowledge management systems and customer relationship management in the three management levels high, middle and operational. Customer knowledge management is the main core of customer relationship management systems and knowledge management is the new prospective of organizations in the Information Age.

CKM can thus be viewed as a crucial domain of KM. CKM is an area of management where KM instruments and procedures are applied to support the exchange of customer knowledge within an organization and between an organization and its customers, and where customer knowledge is used to manage customer relationships, to improve CRM processes such as customer service, customer retention and relationship profitability.

Using the metaphor of service exchange, in CKM, KM is the service provider, who offers the tools and procedures for knowledge exchange [24] and CRM the service buyer, who determines what knowledge, is needed and who generates and uses the knowledge in customer interaction. Swift emphasized the importance of customer knowledge in customer relationship. He figured that CRM is such kind of mutual process by which customer information can be converted into positive customer relationship.

Hypotheses Hypotheses of the study are stated in form of one primary hypothesis and 4 secondary hypotheses. Knowledge management is effective on customer relationship management. The first section questions have been used. The second section contains 20 statements measuring the five KM activities: Knowledge acquisition, Knowledge documentation, Knowledge transfer, Knowledge creation, and Knowledge application. These statements are formulated by Filius eta al. The third section contains 12 statements measuring the four CRM dimensions: These statements are formulated by Kim et al.

How Knowledge Management Improves Customer Relations

Therefore, questionnaires have been distributed in 50 days time span between population samples randomly. Afterwards, questionnaires have been collected. After examining questionnaires were selected for data analysis.

The questionnaire content credit has been approved by distributing the questionnaires among a group of professors specializing in the field of customer relationship management and marketing. It became clear that the questionnaire is to have the necessary credibility.

Description of Population-Sample From respondents, 4 people under high school graduation, 38 people high school graduates, 60 people had associated diploma, 44 with bachelor degree, 21 people with master degree, and finally 4 people hold a PhD degree. And this is while the age of 31 of these people were between38 people between57 between33 people between and 12 people were more than 56 years old.

The SEM approach was used to assess proposed causal model. The SEM technique allows us to multiple indicators to measure constructs and account for measurement errors. Another important advantage is that we can evaluate causal relationships among multiple interested constructs simultaneously []. Given that structural equation modeling has no single statistical test of significance for model fit [42], several goodness-of-fit measures were used to assess the fit of model.

Due to the sensitivity of the chi-square test to sample size, the relative chi-square was used it should be 3 o less for an acceptable model [25], Standardized RMSR should not be greater than 0.

The rate of each index has come in the following Table3: Table 4 presents factor loading and the corresponding t-values of indicators in the measurement model.

All loading exceed 0. The measurement model exhibited a good level of model fit.

knowledge management and customer relationship

The path diagram shows the causal relationships among all variables in the system. It should be based upon a priori knowledge of such relationships which are ultimately related to previous experience or theoretical basis [19]. Thus, the path diagram represents the working hypothesis about the causal relationships among variables. Structural model of the study for confirming hypothesis Fig. Significance value of Significance value of the primary hypothesis is placed out of According to results of these two models relation is based on standard estimation of 0.

Structural model of the study for confirming hypotheses in significance state Based on analysis done using path analysis, results of testing hypotheses of the study can be seen in table 5.