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
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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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