Chapter 13 - Privacy and Ethics Considerations

1.       Consumer Privacy Concerns Touch Point Activity

a)      “Quid pro quo”

b)      Unsolicited direct mail

i)             Imbedded personal informationii)           Time to view and sort mailiii)         “Open-the-envelope” tricksiv)         Offensive or inappropriate mailv)           Mail as a result of recent activityvi)         Overuse of personalization

c)      Unsolicited e-mails

i)             Time to view and sort mailii)           Time and cost to use software in effort to manage e-mails
iii)         “Open-the-e-mail” tricks with subject lineiv)         Offensive or inappropriate mailv)           Virus concerns

d)     Unsolicited e-mails

i)             Personal information captured by cyberspace piratesii)           Spyware, cookies, and other mechanisms used to capture information and track activityiii)         Phishing

e)      Unsolicited FAX

f)       Unsolicited telemarketing call

i)             Current customerii)           Noncustomer

2.       Consumer Privacy Concerns Other Activity

a)      Ability of organization to secure and  manage personal and sensitive information

b)      Use information for respective function only

c)      Inadvertent misuse or illegal use of personal and sensitive information

d)     Specific industry considerations

i)             Financial and insurance

ii)           Retail and catalogue

iii)         Hotel, entertainment, and travel

iv)         Grocery

v)           Auto

vi)         Medical

vii)       Government

viii)     Pharmaceutical

3.       Organization Privacy Concerns

a)      Quest for information while adhering to privacy and ethical responsibility

b)      Emergence of chief privacy officer

c)      Touch point interaction issues

d)     Internal management of information

e)      Consistency across channels

f)       Compliancy (formal and informal)

g)      Compliancy with regulatory entities (formal and informal)

h)      Agreement and relationship with customer

i)        Dynamics of privacy legislation

4.       Legislation

a)      Children’s Online Privacy Protection Act (COPPA)

b)      Financial Modernization Act (Gramm-Leach-Bliley Act)

c)      Telecommunications Act of 1996

d)     Video Privacy Protection Act of 1998

e)      Telephone Consumer Protection Act of 1991

f)       Health Insurance Portability and Accountability Act of 1996

g)      E-Rights S. 854

h)      Driver’s Privacy Protection Act of 1994

i)        Communications Assistance for Law Enforcement Act of 1994

j)        Fair Credit Reporting Act (1970)

k)      Right to Financial Privacy Act (1978)

l)        Privacy Act of 1974

m)    The 900-Number rule

n)      Data-Security Bill

5.       What the Consumer Can Do

a)      Mail preference

b)      FTC do-not-call registry

c)      DMA e-mail preference

d)     Understand opt-in and OPT-OUT

e)      Get smart!

6.       What the Organization Can Do

a)      Be compliant with current and pending legislation

b)      Understand and meet or exceed customer and prospect privacy and ethics expectations

c)      Assign privacy strategy ownership at executive level (e.g., CPO)

d)     Verify that the organization infrastructure supports respective privacy initiatives

e)      Create internal awareness and support internal education on privacy and ethical standards

f)       Ensure that all information-gathering touch point processes support privacy initiatives

g)      Verify who within the organization needs access to customer and prospect information relative to privacy and ethical issues

h)      Identify external partner management of respective privacy initiatives

i)        Create a formal privacy policy for internal use and external use

j)        Do-not-call registry

k)      FTC search program

l)        Wireless - ported numbers

m)    Wireless block identifier

n)      Telephone and e-mail preference services

o)      State TPS lookup program

p)      Can-spam

q)      Deceased do not contact list

r)       Prison, military, and other suppression

s)       DMA’s smart clean service

t)       Build brand trust – (e.g., TRUSTe, BBBOnline, privacy statement and policy)

7.       Other Considerations

a)      Foreign mail preference service

b)      European Union

c)      Technology

i)             Allows for dynamic information capture and behavior observation

ii)           Attractive for cost reduction and timely customer interactions

iii)         Can be perceived as invasive

8.       Summary

a)      Privacy should be an integral component of the CRM strategy

b)      Organizations can turn privacy constraints into a positive differentiator with their customers

c)      Technology has made it easier to capture information and monitor consumer behavior

d)     Organizations should meet and if possible exceed consumer expectations relative to privacy and ethical issues 

Tambahan, BACA JUGA The R in CRM