Leveraging customer relationship management through a knowledge creation process

It is generally accepted that profitable relationships with customers are increasingly important in determining the long-term success of the modem enterprise. Customer relationship management (CRM) is widely considered as an appropriate methodology for building strong and mutually beneficial relationships with customers and, therefore, the study established the definition and scope ofCRM. Customer knowledge could be considered a cornerstone of any CRM strategy and the ability of the enterprise to create and leverage customer knowledge is viewed as a source of competitive advantage. The study aimed at establishing clarity on the . methodologies and approaches to the organizational knowledge creation process. Finally, the integration of knowledge creation and leverage processes into the CRM strategy was considered. Scrutiny of the available literature revealed a comprehensive description of the concept of CRM. The various models of CRM presented in the study clearly illustrated the different focus areas and components of CRM. The most prominent characteristics of a CRM strategy were found to be an emphasis on strategy, the networking of key stakeholders, customer intimacy and the use of appropriate technology. The approaches to the creation of organizational knowledge were analysed and it was found that the conversion between tacit and explicit knowledge is key to the creation of organizational knowledge. The generally accepted principles for the leverage of knowledge were adapted for possible incorporation into a CRM strategy. Stellenbosch University http://scholar.sun.ac.za