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When creating proposals in Word, users often face issues when reusing documents, especially with old customer names accidentally remaining. To avoid this problem, the tutorial highlights the use of Word's "Fields" feature. Instead of manually typing customer names, users can create a custom field for the customer name. This is done by navigating to the File menu, selecting Info, then Properties, and finally Advanced Properties to create a custom field. After adding the customer's name, users can insert it into their documents anytime by going to Insert, then Quick Parts, and selecting Fields. This method streamlines the process and helps prevent errors.