Happy Haircuts Problem Area in Case Study

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This is a service industry, so anything that can be done to provide better service is valuable. The shop will basically be able to see the customer's entire history when the customer calls in, and this allows for quick reference and being able to really be attentive to the customer's needs. In addition, the scheduling feature will help the shop become more efficient and generate more revenue as well. Further, new customer contacts can be stored in the database, and immediately the marketing program can be initiated.

Risks

Cost is a big risk. CRM programs are often not cheap. If the company doesn't use it aggressively to both increase efficiency and increase marketing efforts, then there is definitely the risk that the software will not pay for itself. Otherwise, there are really not that many risks.

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Security and privacy are minor risks, but the system is typically password protected and basic caution will allow for risks to be mitigated -- there is low likelihood of hacking or anything like that.

Considerations

I felt that the most important consideration was the ability to enhance marketing and get a competitive advantage in a service industry. Differentiation is important to becoming a long-term success in the salon business. With so many different services, it is important that HH has a large customer base. The entire examination started as a marketing problem -- with new customers -- but quickly it became obvious that there is a bona fide opportunity to improve all aspects of the organizations' customer relationship management by professionalizing this function......

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