In this article, the study of customer knowledge management is developed from the acquisition, sharing and innovation of customer knowledge; and the classification of customer knowledge and its management process are also discussed. As to the application of customer knowledge in CRM, this article investigates it from the following aspects: enterprises’ personalized customization to increase customers’ loyalty, and the interaction with customers to access customers’ needs, and the elevation of product design to enhance their service capabilities and to lock customers. In order to create and maintain their competitiveness, enterprises should hold customer knowledge as their core assets. http://www.sjae.org/paperInfo.aspx?ID=1957