Managing Customer Relationships: A Strategic Framework

Chapter 9

Privacy and Customer Feedback

Course Title Instructor

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

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Chapter 9 Preview

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Review IDIC Framework: Interact

Customer Information and Privacy

Privacy Attitudes

Permission Marketing

Defining Privacy

Privacy Compliance Benefits and Key Practices

Privacy in Europe

Developing a Privacy Pledge

Submitting Data Online

Key Privacy Issues

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Action

Analysis

…customers as unique addressable individuals

…by value, behavior and needs

…more cost -efficiently and effectively

…some aspect of the company’s behavior, offerings, or communications

Identify

Differentiate

Interact

Customize

Review: IDIC Framework

COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED.

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Customer Information and Privacy

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Customer information is one of a company’s most valuable assets

Privacy concerns exist everywhere

Privacy and personalization are inextricably interwoven

Enterprises need to strike a balance:

How much they need

How far they can go

Trust is always critical to get customer’s information

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Privacy Attitudes

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Two antithetical beliefs of our society:

We have the right to remain inconspicuous

We have the right to know the identity of someone when we need to

Two events that have shaped Western attitudes toward privacy:

Terrorist attacks in United States on September 11, 2001 – questioned ironclad privacy protection

Increased capabilities of social media significantly increased volume of personal data available online

Most consumers recognize balance: personalization makes ordering easier, but still want assurance of privacy

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Permission Marketing

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Interruption marketing

Unsolicited, mass marketing, irrelevant

Wastes customer’s time

Analogy: Propose marriage  rejection  propose to another person

Permission marketing

Anticipated, personal, relevant

Saves customer’s time

Analogy: Ask someone out on a date  date over time  propose marriage

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Defining Privacy

From customer’s’point of view:

Concern about criminal activity (data security)

Concern about others knowing things about them that should not be common knowledge

Concern about being bothered when they don’t want to be

From enterprise’s point of view: includes customers’ point of view and:

Getting information from customers who are comfortable giving it

Using the information to build mutual value with each customer

Protecting customer data as a valuable competitive asset

Communicating data protection to customers

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Benefits of Good Privacy Practices

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Reduction of cost by eliminating the collection and management of unnecessary information

Reduction of risks associated with inaccurate or out-of-date data

Improvement in consumer and employee trust

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A Framework for Privacy Compliance

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Two categories of privacy issues:

Individual privacy

Data protection

Key elements of privacy compliance:

Notice

Choice

Access

Data security

Data integrity

Onward transfer

Enforcement

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Privacy in Europe

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

In contrast to the United States, the European Union Data Protection Initiative makes it illegal to monitor an individual for targeted marketing purposes

Safe Harbor agreement allows U.S. enterprises to operate in Europe according to minimal privacy standards without litigation

EU privacy regulations standardize government policies across Europe and make it easier for any company to do business across the continent, but hampers personalization and trade with U.S. companies

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Developing a Privacy Pledge

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Itemize the kind of customer information to collect

Specify how this information will be used

Specify how this information will NEVER be used

State the benefits an individual customer can expect as a result of his information being used

List a customer’s options for directing the enterprise not to use or disclose certain information (opt in or opt out)

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Developing a Privacy Pledge (cont.)

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

State how a customer can change or update personal information

Identify events that would require customer notification (e.g., if customer information was subpoenaed)

Assign a corporate executive as “data steward”

Specify situations in which it accepts or denies liability for collecting and using customer data

Provide specific procedures allowing a customer to stop the company from collecting personal data, or to purge his information files

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Submitting Data Online

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

Privacy advocates believe Internet marketers are overstepping boundaries; Internet businesses want to personalize for profit

To increase trust between online companies and customers:

Offer assurances of confidentiality

Build Learning Relationships based on trust

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Key Privacy Issues

Managing Customer Relationships: A Strategic Framework, Second Edition

Don Peppers and Martha Rogers

What do we need to know to serve a customer better and increase her value?

What information do we really need to know that?

Once we get that information, how do we balance distribution at the front lines with the need to protect a customer’s privacy?

What are the limits in how we will share or distribute data?

How will we protect and secure the data?

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