Answer to Question #217454 in Marketing for saleemaslam

Question

Question 1

Consider a small retailer that uses one system to collect information about their customers, an Excel spreadsheet to collect information about their suppliers, a Word document to create invoices, and some accounting software to record revenues and expenses.

a)       Give an example of two problems arising from having these systems act as functional silos.

b)       Then, provide a suggestion for how these systems could be combined to add value to the retailer.

Answer 1

Customers don't want a company to spam them every two minutes, sell their information to third parties, or, worst of all, expose their information to cyber criminals. Customer data collection has a long history of being fraught with privacy issues. However, if done correctly, the financial benefits may outweigh the hazards. The worst of the bunch is when you ask for too much at once and overwhelm your clients. Other common blunders to avoid when using a single system to collect information about customers, an Excel spreadsheet to collect information about suppliers, a Word document to create invoices, and accounting software to record revenues and expenses are not using the data at all and making assumptions about customers based on transactional data alone.

These systems could be coupled to give the store more value. Dumping client data into a basic Excel spreadsheet won't help you much once you've gotten it. An all-in-one customer relationship management (CRM) solution is the best, most time- and cost-effective way to store, track, and make sense of client data. The first step in protecting your clients' data is to encrypt it. Names, email and physical addresses, credit card numbers, spending histories, social network logins, and any other sensitive information you have access to are all included. Data encryption best practices differ from one industry to the next. Here's a step-by-step approach to putting together a solid cyber security plan for your small business, replete with expert encryption advice. You might want to consider hiring a data security expert to do the job for you. If you use a third-party to collect and keep your consumer data, be sure they use the most up-to-date encryption standards.