BGS Customer Relationship Management Chapter 13 Privacy and Ethics Considerations Chapter 13 Privacy and Ethics Considerations Thomson Publishing 2007 All Rights Reserved

Consumer Privacy Concerns Touch Point Activity “Quid pro quo” Unsolicited direct mail – Imbedded personal information – Time to view and sort mail – “Open-the-envelope” tricks – Offensive or inappropriate mail – Mail as a result of recent activity – Overuse of personalization

Consumer Privacy Concerns Touch Point Activity Unsolicited s – Time to view and sort mail – Time and cost to use software in effort to manage s – “Open-the- ” tricks with subject line – Offensive or inappropriate mail – Virus concerns

Consumer Privacy Concerns Touch Point Activity Unsolicited s – Personal information captured by cyberspace pirates – Spyware, cookies, and other mechanisms used to capture information and track activity – Phishing

Consumer Privacy Concerns Touch Point Activity Unsolicited FAX Unsolicited telemarketing call – Current customer – Noncustomer

Consumer Privacy Concerns Other Activity Ability of organization to secure and manage personal and sensitive information Use information for respective function only Inadvertent misuse or illegal use of personal and sensitive information

Consumer Privacy Concerns Other Activity Specific industry considerations – Financial and insurance – Retail and catalogue – Hotel, entertainment, and travel – Grocery – Auto – Medical – Government – Pharmaceutical

Organization Privacy Concerns Quest for information while adhering to privacy and ethical responsibility Emergence of chief privacy officer Touch point interaction issues Internal management of information Consistency across channels Compliancy (formal and informal)

Organization Privacy Concerns Compliancy with regulatory entities (formal and informal) Agreement and relationship with customer Dynamics of privacy legislation

Legislation Children’s Online Privacy Protection Act (COPPA) Financial Modernization Act (Gramm-Leach- Bliley Act) Telecommunications Act of 1996 Video Privacy Protection Act of 1998 Telephone Consumer Protection Act of 1991

Legislation Health Insurance Portability and Accountability Act of 1996 E-Rights S. 854 Driver’s Privacy Protection Act of 1994 Communications Assistance for Law Enforcement Act of 1994 Fair Credit Reporting Act (1970)

Legislation Right to Financial Privacy Act (1978) Privacy Act of 1974 The 900-Number rule Data-Security Bill

What the Consumer Can Do Mail preference FTC do-not-call registry DMA preference Understand opt-in and OPT-OUT Get smart!

What the Organization Can Do Be compliant with current and pending legislation Understand and meet or exceed customer and prospect privacy and ethics expectations Assign privacy strategy ownership at executive level (e.g., CPO)

What the Organization Can Do Verify that the organization infrastructure supports respective privacy initiatives Create internal awareness and support internal education on privacy and ethical standards Ensure that all information-gathering touch point processes support privacy initiatives

What the Organization Can Do Verify who within the organization needs access to customer and prospect information relative to privacy and ethical issues Identify external partner management of respective privacy initiatives Create a formal privacy policy for internal use and external use

What the Organization Can Do Do-not-call registry FTC search program Wireless - ported numbers Wireless block identifier Telephone and preference services State TPS lookup program

What the Organization Can Do Can-spam Deceased do not contact list Prison, military, and other suppression DMA’s smart clean service Build brand trust – (e.g., TRUSTe, BBBOnline, privacy statement and policy)

Other Considerations Foreign mail preference service European Union Technology – Allows for dynamic information capture and behavior observation – Attractive for cost reduction and timely customer interactions – Can be perceived as invasive

Summary Privacy should be an integral component of the CRM strategy Organizations can turn privacy constraints into a positive differentiator with their customers Technology has made it easier to capture information and monitor consumer behavior Organizations should meet and if possible exceed consumer expectations relative to privacy and ethical issues