Information and Knowledge Management www.iiste.org ISSN 2224-5758 (Paper) ISSN 2224-896X (Online) Vol.5, No.1, 2015 79 Role of Knowledge Management in Achieving Customer Relationship and its Strategic Outcomes Sayed Fayaz Ahmad (Corresponding author) Center for Emerging Sciences, Engineering and Technology,Islamabad, pakistan E-mail: fayazafghani@gmail.com Muhammad Khalil Shahid Center for Emerging Sciences, Engineering and Technology,Islamabad, pakistan E-mail: khalildona@yahoo.com Abstract The aim of this research is to find out the role of Knowledge Management in getting relationship with customers. It investigates the problem to asses the Knowledge Management importance and to ascertain how to ensure good Customer Relationship. A questionnaire survey was conducted in telecommunication sector organizations like Warid, Telenor, Ufone, Zong and PTCL for finding the concept of Knowledge Management among the managers and to determine whether through Knowledge Management, Customer Relationship are achieved or not. The research data was analyzed through SPSS tools. Based on our results some broad recommendations are made achieving Customer Relationship and other important business elements through Knowledge Management. Keywords: Knowledge Management (KM), Customer Relationship (CR), Business Strategy (BS), Market Information (MI), Information about Competitors (IAC). 1.0 Introduction Customers are the actual buyers who have full control over a firm. Therefore they should be kept as close as possible to the organization in formulating strategy, in developing services and goods. For them organizations design and produce goods and for them invests huge amounts. Therefore, a need was felt to find out how customer will keep satisfied and what are the main outcomes of good CR? Customer is the most important element for any business organization and due to this importance, every organization make strong and lifetime relationship with them. As much as the word market grows in term of competition, globalization etc the value and importance of customers also increases. The relationship with customer is usually studied under the title of Customer Relationship Management. But it is also a fact that CRM can not be studied with out Knowledge Management because of its same objectives for organization [1]. KM is one of the most critical factors for a successful CRM. This shows that through KM, happy relationship with customers can be established [2]. In this research we will not only find out the importance and role of KM in establishing profitable customer relationship but we will also find out the important variables which can only be achieved through better CR. 2. Literature Review 2.1.1 Knowledge management The process through which information related to technology and market are converted to decisions in such a strategic manner, which fulfills the customer needs according to the customer behavior and satisfaction is KM [3]. KM ensures best customer relationship by providing customer focused information. It also gives knowledge about CR lifecycle which further leads to new product innovations and developments. Through effective KM customer can be served on time and effectively. KM also integrates knowledge about the customers and market within various organizational departments and helps where customer related information be created and used [4]. Organizations are doing businesses for making profit. Customer is the only source of generating money for them. This importance reduced staff general functions of KM and raised the methods of using KM for CR strategies [5]. In addition, most of the firms are operating and providing their products and services globally or in more than one country. This increases the need to maintain and build profitable CR which is only possible if knowledge and information about these globally dispersed customer and markets are organized appropriately [5]. It is suggested in this research that best and satisfied CR are achieved through right and suitable KM. KM will not only share information about customer and their market among employees and management of the organization but innovate services and products according to the customer satisfaction, needs, wants and demands. The summery of the literature survey was summarized in the hypothesis below. H (1.1): Knowledge Management has positive impact over CR Ho (1.1): KM has no impact over CR