Why tacit knowledge is important in customer relationship management? Explain TWO (2) examples of how technology impacts the way businesses manage customer relationships. Describe TWO (2) potential drawbacks of neglecting the importance of tacit knowledge and solely relying on data-driven analysis in customer relationship management.
Why tacit knowledge is important in customer relationship management? Explain TWO (2) examples of how technology impacts the way businesses manage customer relationships. Describe TWO (2) potential drawbacks of neglecting the importance of tacit knowledge and solely relying on data-driven analysis in customer relationship management.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Based on Figure Q16, answer Q16(a) - Q16(c).
customer
CRM
Boftware
and
overlooked. Por
contact with
shopkeeper who
personal
The rise of technology has greatly impacted how businesses manage
relationships, with
customer data. However,
being widely used to gather and store
difficult to formalize
the value of tacit knowledge, or knowledge that is
instance, a traditional
communicate, should not be
customers knows their preferences, buying habits, and has developed a deep
maintains
understanding of their needs. On the other hand, a company with a CRM manager
and expensive software has invested heavily in technology to manage customer
relationships, collected vast amounts of data on their customers, and
analyzed it using complex algorithms. However, in terms of building long-term
relationships with customers, the shopkeeper's tacit knowledge may be more
valuable than the company's explicit knowledge. While the company's explicit
knowledge may be valuable in identifying broad trends and patterns, it may
not be as effective in building long-term relationships
with individual
customers.
(a)
(b)
(c)
After
Figure Q16
Why tacit knowledge is important in customer relationship management?
Explain TWO (2) examples of how technology impacts the way businesses manage
customer relationships.
Describe TWO (2) potential drawbacks of neglecting the importance of tacit knowledge
and solely relying on data-driven analysis in customer relationship management.
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