Nordstrom Knowledge Management

Knowledge management is the process of capturing, developing, distributing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplinary approach to achieving organizational objectives by making the best use of knowledge (Cortada, 2000). Customer relationship management refers to the strategies that companies use to manage and analyze customer interactions, purchase history, personal interest, buying preference and data throughout the customer lifecycle, with the goal of improving business relationships with customers. Ernest & Young’s reusable knowledge system and Nordstrom’s customer relationship management program both demonstrate the importance of knowledge management and consumer relationship management in
It represents a company’s approach to developing full-knowledge about customer behavior and preferences and to developing programs and strategies that encourage customers to continually enhance their business relationship with the company. According to Forbes (2013), Recent studies show that companies with a fully utilized CRM system can increase sales by 29%. Today, more and more companies are adopting customer-centric strategies, programs, tools, and technology for efficient and effective customer relationship management. In-depth analyzes and integrated customer knowledge is needed in order to build close cooperative relationships with their customers and develop a greater degree of integration between marketing, sales, and customer service in organizations. In today’s society, the emergence of technologies is significantly changing how companies interact and communicate with their customers (Rouse, 2014). Customer relationship software consolidates customer information and classifies into a single database so business users can more easily access and manage it. Under the system, each customer will have a profile created with their information, such as purchase history, spending ability and buying preferences. The program also includes contacting the customer through the company's website, telephone, email, direct mail, marketing materials and social
Through customer relationship management programs, retailers can know their customers’ preferences, behavior and preferred products. For example, major department stores such as Neiman marcus, Nordstrom and Saks Fifth Avenue encourage their customer to sign up a free account for newsletter. The retails will save the customer’s preference and shopping habits with website searches. They will offer products and secret sales based on customers’ shopping and searching behavior. In addition, retails can send newsletters to the customer’s email with promotional items. The retails can offer promotions to a selection of customers, such as new customers. Customer relationship management is an effective way of marking, promoting business and consumer loyalty. It establishes a cooperative and collaborative relationships between buyers and