Significance of Knowledge Management in E-commerce business

 Customer Knowledge Management (CKM) frameworks and techniques plays the crucial role  to exchange the knowledge between a company and its customers, this will help the organization to make relevant business decisions. Through CKM’s strategic process,companies will be able to move their customers from recipients who just enjoy their services to more knowledgeable partners.

Why CKM?

As per the research of Gibert et al. (2002), there are five style of CKM which shows that handling the knowledge of their customers and corporations will help them to figure out the emerging market opportunities earlier than their competitors.Customer knowledge management has direct or indirect impact on organizational performance.Customer Knowledge can be formed through surveys,polls & interaction between your customers,other customers,other companies and through consulting companies.

Zanjani et al.(2008) defines that customer knowledge is a information which can analyzed,interpreted & converted to knowledge.Companies not only captures the information about customers but they also purchase the data about customers from other companies.So,it clearly shows that the growth of an ecommerce website not only depends upon the products & services they are providing but it also depends upon the data they gather about their customers.

Implementation & Strategies



In order to apply knowledge management concepts, organisations need to use several mechanisms using the available web technologies. At the first phase, they need to design the preliminary conceptual model by covering the aspects regarding the knowledge for,from and about customers in detail.

The second phase consists of a detailed multiple-case study approach.This case study will give us a deeper insight about the analyzed data.It also includes more detailed information about the company to the customers.Those are broken down into several parts products & services,general information,environment & complimentary information.

Using the proper Knowledge management tools,any e-commerce business can multiply it’s size of growth to identify new market-demand products and launch them successfully into the market.Company can show that products to a larger audience segment according to the customer interests.This will be helpful to drive the revenue and increase the profit growth.Based upon the data you collected,company can decide which images to insert in contnet,email & display campaigns.You can analyse the data and review it more often to satisfy & reach more customers. This will result in more positive reviews in social media like Facebook,Instagram&Twitter.

Through your analysis from knowledge management, you can target the AD campaigns more effectively to lure the new customers and existing ones. In addition to that, companies can give great discount offers for trying new products to consumers who are considered as repetitive customers.

Introducing a free customer call service should be your top priority and at the same time you have to deliver the standard service quality by hiring well-trained customer service executives and implement the chatbot facility in your website.

To conclude, knowledge management has been neglected so far but this model helps the businesses grow successfully and explore the customer knowledge. It converts the customers from recipients of services  to knowledgeable partners.

Author : Mahindan Uthayakumar

Keywords

#Knowledge management strategies
#Knowledge management for an E-commerce business
#Significance of Knowledge management
#What is Customer Knowledge Management

References

Gibbert, M., M. Leibold and G. Probst, 2002. Five styles of customer knowledge management and how smart companies use them to create value. Pg no:459-465.

Zanjani, M.S., R. Rouzbehani and H. Dabbagh, 2008. Proposing a conceptual model of customer knowledge management. Pg no:60-64.

M.S. Zanjani, N. Sakhaee and H. Shahbaznezhad. Mechanism of customer knowledge management. [Online]Available at:  <https://scialert.net/fulltext/?doi=rjit.2009.86.93#101579_ja>

Harrison Clover. 3 Reasons why eCommerce must have Knowledge management.[Online]Available at: <https://www.kmslh.com/3-reasons-why-ecommerce-must-have-knowledge-management/>

Omni.sci. Picture ref:[Online]Available at:  <https://www.omnisci.com/technical-glossary/knowledge-management>


Comments

  1. I found this blog very helpful for marketing perspective. Sometimes people think knowledge management and CRM is same. But there is difference between both like CRM is mainly for sales and Knowledge management is for customer services.
    Knowledge management is developed to support and assist customers in answering questions and solving queries. Knowledge management is an ongoing method of generating, exchanging, leveraging and maintaining the knowledge and information of an entity with the goal of getting the right information in the right platform at the right time.
    A CRM or customer experience management system, is used to coordinate the company's relationships with current and potential customers. CRM software is used in combination with sales and marketing management as well as customer support. It provides a common repository of information for each customer that can be handled by several departments.
    - Akshata Dalvi

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  2. Well written @Mahindan Uthayakumar. Well written Mahi. It is very much true that knowledge management aspects of an e-commerce system, through the integration of knowledge functions with the realities and potential capabilities of e-commerce. With the afterward improvement of commerce being conducted over the Internet, companies are certainly utilizing information development to cut costs, increase efficiency, diminish the time required to make cutting edge things saddle the collective authority of their specialists, and make an extended wander by fabricating closer associations with their clients, suppliers, vendors, and assistants in orchestrate to remain competitive. In most companies, data organization and e-commerce exercises have been overseen with independently.

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  3. This blog is really helpful for me to understand about CKM. Excellent work Mahi.
    As we know customer knowledge management plays important role as a mediator in conveying knowledge with company and its customers. It also boosts the efficiency of decision making of a company. This will help to build a comfort relationship in between customers and the company. For this, a systematic process of collecting and sharing of customer knowledge is very crucial. Recent researches show a potential challenge between customer relationship management and knowledge management. In short we can say that CKM is the science of knowing a company's customers.

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  4. It is very helpful information about the ckm.

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