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	Customer Loyalty Part 4 of 4
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	KEY BENEFITS Since knowledge management can fit into a variety of environments, are there some benefits that cut across these already identified needs? We can examine these benefits from the view of the customer or from the view of the vendor. From the customer standpoint, knowledge management provides a level of service that can be up-to-date and accurate. The information supplied is also comprehensive and delivered in a timely and speedy fashion. Finally, the customer has some flexibility in getting the infor­mation. The fact that the user can get into the Internet from wherever they are anytime is very appealing. Federal Express is a prime example of these benefits. Its Web-based information system allows both FedEx and its customers to quickly understand the status of a shipment [6]. But more that this supply chain data, the Web site can also provide marketing and sales transaction information such as delivery service alternatives, pricing, and ancil­lary products. In fact, FedEx can extend its Web site information back into the network of its customers so that the FedEx system becomes a part of the shipping system of its customers. In this way, FedEx can embed itself into the Web of its customers, thus ensuring customer loyalty in an unprecedented way. From the manufacturer's point of view, the knowledge manage­ment framework encourages team collaboration. This allows the com­pany the ability to bring various viewpoints together so that a unified picture of the customer is presented. No doubt, the quality of the pro­fessional environment will come through as well. Costs and productiv­ity improvements can be anticipated if only by small amounts. Finally there is an opportunity for employee growth potential as new creative ways of approaching, dealing with, or serving the needs of customers. Finally, there are some intangible benefits that result from applying this framework. First the customer relationship can evolve and be strengthened through the use of this framework. Second, best-of-breed software can be incorporated that strengthens the relationship and hence the customer loyalty. Finally, there can be some level of flexibility in evolving the technology. New mechanisms both electronic and non­electronic, for reaching customers, can be utilized. CONCLUSION In summary, this focus on the process of customer interaction proves paramount in building customer loyalty. The framework when based on the World Wide Web gives people more flexibility in reaching po­tential customers. The framework is also robust enough so that it can deal flexibly with both organizational changes and technology changes in the new millennium. And most important, knowledge can be engi­neered for competitive advantage. This knowledge management framework also allows for the evo­lution of customer interaction as markets and customers change. For instance, at the start of a relationship, sales rep interaction may be key in developing a clear understanding of customer needs and in build­ing a level of trust and confidence. As customers become more com­fortable with the products and services offered, they may become more demanding as well. The need for third parties or alliance partners be­comes more important. Alternatively, this growth in comfort may also mean that part of the order and fulfillment effort can be offloaded to channel partners. Competitive cost pressures may also force consid­eration of alternatives to the high cost direct sales rep channel. Fi­nally, as customers become very comfortable, they may find the con­venience of the Internet and Web of high value. At this point, it will be very effective to establish a one-to-one relationship on the Web and utilize those elements of the knowledge management framework. Customer loyalty has traditionally been built on the establishment of strong relationships built on brands, service, and people. At its core, however, customer loyalty is achieved by ensuring that the customer receives added value repeated and consistently over time. To achieve that in the twenty-first century, organizations will add a new strategic element—the element of Internet-based knowledge management. STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation "How to Survive in an Entirely New Economy."  All at no cost of course.  First Name: Your E-Mail:  Your personal information will never  be disclosed to any third party. privacy policy Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter: "Great manufacturing articles. Thanks for the insights. 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