With the market shift toward customer-oriented approach, many corporations have invested heavily in customer relationship management systems. These systems can be implemented only through information technology (IT) and by utilizing knowledge management capabilities. Today, customer knowledge is the signboard of organization's policy makings and the basis of strategic decisions. Accordingly, implementation of customer relationship management systems involves acquisition, documentation, transfer and using knowledge inside and outside the organization. This article tries to examine the influence of knowledge management on the various aspects of customer relationship management (customer knowledge, customer interaction, customer satisfaction and customer value). Present research is applied and descriptive study. A researcher -made questionnaire is used for collecting the information. The population sample of the study is all the staffs of departments of marketing, sales and customer relationship management in Iran-khodro (Tehran). Hypotheses of the study will be analyzed using Structural Equation Modeling/Path Analysis and Tests of Fit with the help of LISREL 8.5 and SPSS 17 software. Results of the study show that, KM is effective on CRM and this relationship has impact on increasing of customer satisfaction and profitability. © EuroJournals, Inc. 2011.