Reference no: EM132394644

Rita has just purchased a hairdressing salon in a small shopping strip. According to the financials she examines prior to taking over the business and the advice she has received from the two existing employees, Rita identifies that about half of the customers are regulars. She is shocked to find that there is no system for managing customer information at all. The two staff members have been at the salon for more than five years and know the regular customers well.

Rita can see the problems and the missed opportunities this situation presents and is determined to do something about it. She is considering two possible solutions:

• Introducing a client card system where contact details and information about the service provided are recorded at each client's visit.
• Purchasing client management software and implementing an automated information management system.

1. What are the problems and the missed opportunities this situation presents?

2. What are the pros and cons of possible solution Rita is considering?

3. What would you decide to do in Rita's position? Why?