Customer Knowledge Management (CKM): A Way to Increase Customer Satisfaction

Customer Knowledge Management (CKM): A Way to Increase Customer Satisfaction

Rawan Khasawneh (Jordan University of Science and Technology, Jordan) and Ameen Alazzam (Al-Tai'f Technical College, Saudi Arabia)
Copyright: © 2015 |Pages: 15
DOI: 10.4018/978-1-4666-6547-7.ch001


The knowledge-based perspective of the firm implies that knowledge is an important asset that should be utilized effectively in order to achieve sustainable competitive advantage and leverage customer loyalty and satisfaction level. Integrating Customer Relationship Management (CRM) and Knowledge Management (KM) resulted in introducing the concept of Customer Knowledge Management (CKM), which focused on getting the maximum benefits from customer knowledge and providing customers with continuous improvements and customized products and services. This chapter explores customer knowledge management and its general concepts including knowledge and customer relationship management. In addition, it reviews the goal of CKM strategy that targets organizing and integrating customer knowledge in a manner that improves the organization's understanding of how to serve customers by more effectively utilizing the vital relationship between implementing CKM strategy and leveraging customer satisfaction level. Conclusions and proposed future work are stated at the end.
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In the age of knowledge economy, many organizations believe that knowledge is the most important asset for it (Ma & Qi, 2009).The shift from industrial revolution to knowledge revolution requires organization to use knowledge effectively in order to achieve sustainability, competitive advantage, and other long-term benefits including the firm strategic goals (Khasawneh & Abu-Shanab, 2013). On the other hand, the adoption of “customer is the king\queen” strategy plays a key role in making organizations focus on the task of gathering information about their customers that in turn can be used in providing those customers with continuous improvement utilizing a special type of knowledge management strategy.

Organizations and academics focus on both knowledge management and customer relationship management to obtain continuous benefits of competition through the optimization of organizational resources in order to support commerce (Sanayei & Sadidi, 2011). This come from that knowledge management and customer relationship management have mutual goal to provide customers with continuous improvement and customized products and services in an attempt to increase their satisfaction level and loyalty (Dous, Salomann, Kolbe & Brenner, 2005; Akhavan, Ashtar & Heidari, 2008; Sanayei & Sadidi, 2011). Customer satisfaction is the degree to which a customer perceives that firm or organization has effectively delivered a product or service that meets the customer’s needs (Cengiz, 2010). In order to provide customers with desirable goods and services that meet their satisfaction, the organization must manage its knowledge about customers. Therefore, it seems that KM can be beneficial to better implementation of CRM (Attafar, Sadidi, Attafar & Shahin, 2013). Several organizations adopted the integration between knowledge management and customer relationship management because it believes in the role of knowledge management in a successful implementation of customer relationship management (Moreno, Melendez & Obra, 2010; Akhavan et al., 2008; Feng & Tian, 2005).

The integration has been resulted in Customer Knowledge Management concept (CKM) (Xiong, yue, & li, 2011).Customer knowledge management (CKM) is the implementation of knowledge management techniques to support the interchange of knowledge between the organization and its customers in order to make customers more satisfy and loyal (Kong & Cai, 2008; Feng & Tian, 2005; Sanayei & Sadidi, 2011).

This chapter focuses on the goal of CKM strategy that targets organizing and integrating the collected information in a manner that improves the organization’s understanding of how to relate to customers more effectively including: providing them with continuous improvements, customized products and services and many other aspects. Also, this chapter tries to explore the role of KM process in enhancing CRM processes through understanding the ways in which organizations should deal with its current customers, attract new customers, retain existing customers, and expand the relationship with customers using customer knowledge. The chapter is divided into four sections. Following is a brief description of each section.

The following section reviews knowledge management in general; its definitions, types, processes, key actors and the general area concepts. Then, a general view of customer relationship management is presented. It reviews its definitions, categories, dimensions, processes and other related concepts. The third section focuses on customer knowledge and customer knowledge management where several models of customer knowledge management are reviewed in addition to a description of the components and factors of each model. The fourth section briefly discusses the vital relationship between implementing CKM strategy and leveraging customer satisfaction level. Conclusions and proposed future work are stated at the end.

Key Terms in this Chapter

Knowledge Management (KM): Is a process that focuses on identifying, managing and leveraging individual and collective knowledge to support firms in becoming more competitive and achieve their goals.

Knowledge Application: Is the process of integrating knowledge into an organization’s products or services.

Customer Relationship Management (CRM): Is a process to improve customers’ loyalty and retain, through build a good relationship with customers for understanding their needs and demands.

Knowledge: Refers to the perception, awareness and understanding of the facts or the acquisition of information through experience or through meditation on the nature of things and introspection or through access to the experiences of others and read their conclusions.

Relationship Marketing: Is marketing activities that aimed to develop and manage a long-term relationship with customers and extend the relationship further than advertising and sales promotional messages.

Customer Knowledge Management (CKM): Is a process that focused on how the organizations can use KM techniques to support knowledge interchange between organizations and their customers in order to get the maximum benefits from knowledge as a valuable asset.

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