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In the tutorial, the speaker addresses a common issue in Word where users mistakenly retain an old customer's name in a proposal while trying to create a new one. To avoid this, the tutorial suggests using Word's "Fields" feature instead of manually replacing names. Users are guided to open the File menu, go to Info, and select Advanced Properties to create a custom field labeled "customer name." After adding the customer’s name, users can insert the field into any document by navigating to Insert, then Quick Parts, and choosing Fields. This method ensures the accurate insertion of customer names and minimizes potential errors.