The effect of knowledge management (KM) on the success of customer relationship management (CRM)

Master's Thesis in Business-Marketing Management

Knowledge management (KM) and customer relationship management (CRM) are two key tools for any company in the current competitive environment. Also, knowledge management is an important issue in the implementation of customer relationship management. Customer relationship management begins with a work strategy. This strategy creates transformation in the organization and work processes, and work processes are in turn activated by knowledge management and information technology, and finally for Increasing customer loyalty is one of the basic concepts and goals of customer relationship management.

The purpose of this research is to investigate the effect of knowledge management on the success of implementing customer relationship management in Bank Saderat Iran branches in Urmia. In this regard, a model has been presented in this research that includes variables influencing the success of customer relationship management. The statistical population of this research is 557 people, including all employees of Saderat Bank Iran in Urmia, and Morgan's table was used for sampling, and finally, the number of sampled people. 227 people were obtained. The method of data collection was through a questionnaire. Also, in this research, the path analysis method was used to interpret the information, and the LISREL software was used to process the data. In order to analyze the data and test the research hypotheses, the structural equation model (SEM) was used. The results of the research indicate that the effect of knowledge management abilities on the success of customer relationship management is positive, and with the increase of knowledge management abilities, it can be expected that the success of relationship management Also, the technological factor in the field of customer relationship management and organizational factors also had a positive effect on the success of customer relationship management implementation. But the research results show that there is no significant effect between customer orientation and activity history in the field of customer relationship management with the success of CRM implementation, and the fourth and fifth hypotheses of the research are rejected. It has changed the way organizations play in their relationship with other companies. Business experts and academic experts talk about alliances, networks and cooperation between organizations, but managers and researchers have largely ignored the factor that is strangely transforming industrial systems: the "consumer" or "customer". Enter into a dynamic dialogue with the manufacturers - a dialogue that customers are in control of - organizations have to accept that the customer is becoming a partner in creating value. Customer relationship management is generally the process of designing an organization around its customers, in such a way that the customer's needs and desires are considered as the main focus in every organizational decision. The goal of creating a customer-focused organization is to increase the mutual value of the organization and the customer in the field of communication. It is the customer. This value from the organization's point of view is the improved rate of customer retention and increased revenue, while more efficiency and cost control.

Banks as monetary and financial institutions are also in new refinements and bank customers have more demands than in the past. They are interested in checking the status of their accounts in time and using instant payment systems, they travel around the world, and pass through time zones. and they need to be available 24 hours a day and 365 days a year. They compare the various offers with just one click of the mouse. They purchase products and services from more than one bank and do not hesitate to choose another bank due to the more attractive products and services or its conditions. Today, customers are less loyal to their bank and use the services of different banks. Customers have more knowledge about financial issues, manage them more actively, and are ready to accept more risk in exchange for higher returns. They also need new products that match their new lifestyle.

1 Statement of the problem: Customer relationship management (CRM) and knowledge management (KM) as key and strategic tools for all companies, especially in the current competitive environment.

1 Statement of the problem:

Customer relationship management (CRM) and knowledge management (KM) are key and strategic tools for all companies, especially in the current competitive environment. In addition, customer knowledge is a very important issue in the implementation of customer relationship management (CRM). Many studies have been conducted in the field of knowledge management component analysis, which shows the vital role of knowledge management as one of the factors that determine success in the implementation of customer relationship management. Also, these studies have shown a high rate of failure in implementing this strategy for organizations. (Aurora & Antonio, 2011)

There are many definitions of knowledge management in various articles that consider knowledge management as a process that helps organizations in identifying, selecting, organizing, publishing (distributing) and transferring important information and specializations that are part of the organizational memory and often exist in an unstructured form in the organization.

Knowledge structuring improves effective and efficient problem solving, dynamic learning, strategic planning, and effective decision making. Knowledge management focuses on identifying knowledge, describing and constructing it, and increasing its value through reuse.

Customer relationship management (CRM), which is sometimes referred to as customer management, customer value management, customer-centric, or customer-centric management, has for a long time been the common term for The desire of companies has been to establish continuous and constant communication with their customers. In this regard, it is important to point out that companies that have effectively attracted their customers and provided them with the desired services in the best way, have seen the positive effect of this at the end of their profitability path. more to provide more products and services to those customers.

Currently, the knowledge-based economy has been drawn by factors such as increasing competition, innovation in technology and the global nature of markets (Castells, 1998). In the current competitive environment, companies must pay special attention to knowledge in their business activities, this is a factor to create a "competitive advantage" compared to other competitors in the market. (Beijerse, 1999; Salmador & Bueno, 2007). In addition, in recent years, "knowledge" has been considered as an important organizational resource, and the interest of organizations in this matter is increasing day by day. In the current competitive environment, the company's relationship with the market is very vital, and the marketing strategies of companies have completely changed in order to establish a closer relationship with customers. (Alavi & Leidner, 2001; Drucker, 1993)

1 dimensions of the problem and the conceptual model of the research:

The transition from the industrial economy and the disappearance of the geographical borders of business, as well as due to the increase in competition between different industries, have caused commercial and production organizations to turn to various strategies and methods to succeed in competition, so that they can retain their customers and gain their satisfaction. Because the needs of customers and their purchasing patterns It has changed dramatically and this has caused companies to show a great tendency to accept "customer-oriented" marketing strategies in order to meet different needs and in order to achieve a competitive advantage (Xu & Walton. 2005). Today, organizations place their customers at the center of all activities and formulate the main marketing and sales strategies accordingly. Customer relationship management (CRM) is a business strategy that creates two-way value. And it identifies all aspects of customer profile, creates customer knowledge, forms relationships with customers, and creates their perception and mental image about the organization's products and services. (Beijerse, 1999)

For this reason, studying how to create relationships with customers, as well as examining the influencing factors in creating effective relationships with customers, is very necessary to maintain them, because the customer is the main capital of any organization. People, processes and technology create. Customer relationship management is also a holistic approach and provides continuous coordination among sales, marketing, customer service and other customer-facing activities.