1. Why is it important for any company to use CRM strategies to manage customer information?

• help organizations answer tough questions such as who are their best customers and which of their products are the most profitable.
• Make organizational business processes more intelligent. This is achieved by understanding customer behavior and preferences, then realigning product and service offerings and related communications to make sure they are synchronized with customer needs and preferences.

2. How are CRM strategies in Second Life different from CRM strategies in the real world?

#Operating in a virtual world has many similarities and differences from operating in the real world.  In a  virtual world you will be operating with many different types of customers who look different from real customers.

3. If the virtual world is the first point of contact between a company and its customers, how might that transform the entire shopping experience?

It will be positive and negative effect of both parties

Positive sides

• It more easy  to make conversation and transaction
• The communication will be more effective because customer can face to face  with seller.
• The customer can give comments or critic in front of the virtual tools

Negative sides

• Higher cost in maintenance.
• Customer did not know about  the actual product
• It will hard for customer to communicate if the machine in technical problem.

4. How could companies use Second Life to connect with customers that would be difficult or too expensive in the real world?

With a virtual world you will not experience any of the problems we have in the real world with travel.  A trip to Japan, China, or Australia can cost a company thousands and thousands of dollars in airfare, hotels, taxis, food, etc.  Not to mention employee time.  By visiting customers in Second Life you can have a one-on-one or group conversation with people from all over the globe without leaving your office.  Second Life will help flatten the world and make everyone next door neighbors.