Answered Essay: Every company gathers information on customer preferences and buying history in order to improve

Every company gathers information on customer preferences and buying history in order to improve their long-term customer relationships. Maintaining a customer database requires protecting the confidentiality of the information.

Consider the following scenario:

Sara is the marketing manager of a small human resource (HR) consultancy firm. She wants to address improving customer relations and understanding and managing consumer behavior.

She would like to implement a process of using a database to assist her company in its marketing efforts. She is also concerned about online privacy versus off-line privacy.

Now, respond to the following:

How would you address Sara’s concern about the level of privacy in an online versus off-line database?

Expert Answer

Answer

A database of customer preferences is an important database since they help the company in determining the customer preferences and also help them in developing strategies. Hence this information will have to protected like the financial information of the company.

This database can be both online and offline. Maintaining an online database is more riskier than having an offline database due to increasing cyber attacks. In case of an online database, the company should have an internal server where all the files should be stored and further it should also have a strong antivirus to protect the online data.

The offline database is comparatively easy to manage since it is not prone to any cyber attacks. The only way the data can be stolen is by hacking or copying it to other discs or drives. Even in that case if the file is password protected, it will be difficult to access the file.

These are the pros and cons of an online versus offline database.

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