To implement the Customer Relationship Management (CRM) is an important topic. The main purpose of enterprises performing CRM is to handle customer demand and increase customer satisfaction in order to maintain the customer relationship, and then raise the customer loyalty to create new businesses. Using structural equation modeling (SEM), the results reveal that managing knowledge has significant effects on customer satisfaction. The mediating effects of customer satisfaction on the relationship between CRM and customer loyalty were investigated. And the results reveal that customer satisfaction positively and significantly mediating the effects of CRM function on customer loyalty. The major findings of this study are summarized as following: 1. Overall, the global model fit is acceptable. This empirical result supports that the significant relationships exist among the CRM functional programs, customer satisfaction and customer loyalty. 2. The strengthening of department store’s CRM functional programs-customer knowledge management has positive influence on customer satisfaction. 3. The department store customer satisfaction may establish the customer’s loyalty and will strengthen mutual interaction in future