Is CRM a knowledge management system? What is it all about? To know more about that, you should read this article until the end.
Is CRM a Knowledge Management System?
CRM, which stands for Customer Relationship Management. It is a system that helps to manage the relationship between the company and its customers. It covers a wide range of activities and processes, including acquisition, retention and loyalty management, and advocacy, that are used to meet the requirements of the customer.
Also, it provides a centralized database in which information can be stored and managed centrally with other departments. This database is designed to provide access to all employees who have contact with customers so they can serve them better. By doing this, the CRM can increase sales, improve service levels and reduce costs.
CRM System: Components
The CRM system is composed of six components:
1) The customer database stores information about customers (name, address, phone number, history, product preferences, etc.). In order to create a profile that can be used for future activities.
2) The lead database stores information about leads or potential customers. That have not yet been contacted by sales representatives or are not yet customers of the company.
3) Prospecting module which also identifies new prospects through purchase history analysis. Or data mining techniques used by predictive analytics software. It classifies them according to factors like company size and industry type. Allowing sales team members to contact them in a more precise way and improve their results.
4) The marketing module manages marketing campaigns aimed at promoting products and making sales through different channels like telemarketing, web marketing (e-mail campaigns), social media marketing (sharing content on social networks), trade shows, or direct contact with some potential clients.
5) The sales module which handles incoming inquiries from potential clients; allows you to manage tasks such as setting appointments or follow-ups with potential clients through different channels (phone calls or emails).
6) The service module handles customer support requests through different channels like phone calls or emails; it allows you to manage tasks such as setting appointments or follow-ups with current clients through different channels (phone calls or emails).
What is Knowledge Management?
Knowledge management is a set of processes applied in an organization in order to capture knowledge created by employees during their daily work processes and then make that knowledge available throughout the organization so it can be reused by employees when they need it (Wikipedia). In other words, it is the process of capturing and storing knowledge that has been created by employees in the organization in a central database so it can be reused at any time.
In order to define if CRM is a knowledge management system, we must first know what knowledge is. Knowledge is the ability to use existing knowledge to apply it in a new situation. For example: knowing something about music allows you to apply that knowledge in a new situation when you are playing an instrument.
There are three types of knowledge: explicit, tacit, and procedural. Explicit knowledge comes from the conceptual level, it is codified in documents, manuals, and other written forms. Tacit knowledge comes from the experiential level, it is everything that you know but you cannot explain in words or write it down. Procedural knowledge involves skills that you acquire through practice and training.