The Correct Answer and Explanation is:

Based on the visible text, the question asks for the best practice in managing customer information.

Correct Answer: Use a centralized and secure Customer Relationship Management (CRM) system.

A Customer Relationship Management, or CRM, system is a specialized software application designed to be the central hub for all customer-related data and interactions. Implementing a secure, centralized CRM is considered the gold standard for managing customer information for several critical reasons.

First, centralization ensures data consistency and accessibility. When all customer information, from contact details and purchase history to service requests and communication logs, is stored in one place, every department within a company works from the same playbook. This eliminates data silos, where different teams might have conflicting or outdated information, leading to a more unified and professional customer experience. A sales team can see a customer’s recent support issues, and a support agent can view their entire purchase history, allowing for more informed and personalized interactions.

Second, security is paramount. Professional CRM platforms are built with robust security measures to protect sensitive customer data. These features include data encryption, role-based access controls which ensure employees only see the data relevant to their jobs, and regular security audits. This approach is vastly superior to storing information on unsecured local drives, which are vulnerable to hardware failure, theft, and cyberattacks. Sharing credentials, another poor practice, completely undermines accountability and security protocols.

Finally, using a CRM supports long term strategy and compliance. It allows businesses to analyze customer behavior over time, identify trends, and build lasting relationships. Deleting records after a single transaction, in contrast, destroys valuable historical data and can even violate legal requirements for record keeping. Therefore, a CRM system provides the secure, efficient, and strategic framework necessary for modern customer management.