Potential Issues in Customer Relationship Management

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  • 0:03 Customer Relationship…
  • 1:03 Customer Privacy
  • 1:30 Unfair or Inconsistent…
  • 2:10 Inaccurate Information
  • 2:57 Lesson Summary
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Lesson Transcript
Instructor: Savannah Samoszuk

Savannah has over eight years of hotel management experience and has a master's degree in leadership.

When businesses collect information about their customers to improve service, they need to be careful that their efforts don't backfire. This lesson takes a look at potential issues with the use of customer information.

Customer Relationship Management

Have you ever gone to a restaurant or hotel and been surprised that the person helping you knew information about you or your preferences? This can either make you feel happy that the business values you or it can make you uncomfortable that this business is tracking your information.

Every business is always looking for new ways to improve their service and go above and beyond for their customers. Customer relationship management (CRM) is a strategy that businesses use to collect and store information on their customers. This information can include purchase history, preferences, and personal information. The goal is to be able to anticipate customer needs and build better relationships.

In their efforts to use customer information to better serve their customers, businesses need to watch out for some potential issues with customer relationship management, including:

  • Customer privacy
  • Unfair or inconsistent use of CRM
  • Inaccurate information

Customer Privacy

The first issue that would concern your customers is their privacy. Some customers may not want you keeping track of their personal information. They may find this to be overbearing and a breach of their privacy. For example, a customer may not like celebrating birthdays, so checking into a hotel room filled with balloons could be an overstep. It is important to use customer information wisely to avoid making customers feel like their privacy has been invaded.

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