Customer knowledge gained from firsthand customer contact is very persuasive. Smart CEOs at firms like IBM, Cisco, and EMC intuitively realize this, and their senior managers contact their major customers on a regular basis. These firms also act on that information to improve relationships with those important customers. The benefits of customer knowledge management have concentrated at the individual level. For example, Dreyfus, like other mutual fund firms, keeps track of client activity, claiming that they can predict when a client is going to shift money out of their mutual funds. Clients receive a call from a Dreyfus representative, who wants to know how the client feels about the investment and if his or her goals are being met. If Dreyfus is able to track clients at all stages of the consumption process, then the firm has a better chance of retaining the customer. A number of CRM - and ERP-type software programs allow companies to track processes in the life of a specific sales order from order entry all the way to delivery to customer. Of course, FedEx introducing package tracking is a well-known example from years ago. There are a number of benefits of information technology for firms of any size. The marketing research practice has undergone a major transformation in recent years. A primary function of marketing research activities is to collect and analyze customer information. Technology has enabled all phases of the marketing research process ranging from sampling and data collection to analysis and reporting. With newer technologies and faster cycle times, firms conduct research at all stages of the product lifecycle and not just at the product development stage or the test marketing stage.
This essay describes customer knowledge management.The quality of the knowledge on the customer is much greater because of direct observation. Obtaining that knowledge is only the first step. The basic skill of listening involves competence in sensing, evaluating and responding…