Page 300 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 12: Customer Privacy

12.2.8 Secondary Users of Information Notes
12.2.9 Incentives Involving Payment
12.2.10 Contracts and Markets for Information
12.2.11 Personal Information

12.2.12 Costs of Acquiring Public Information
12.3 Analysis of CRM Strategies
12.3.1 Designing a CRM Strategy
12.3.2 What Value will CRM Deliver to the Business?

12.3.3 Creating Customer Value
12.3.4 Delivering the Benefits of CRM
12.4 Summary
12.5 Keywords

12.6 Review Questions
12.7 Further Readings

Objectives

After studying this unit, you will be able to:
 Describe the concept of customer privacy

 Analyse the need for customer privacy
 Ascertain the importance of customer privacy
 Identify the Analysis of CRM strategies
 Discuss the global perspective of CRM

Introduction

For a long time, the conventional wisdom was that electronic communications constituted a
major threat to individual privacy. Wiretapping, eavesdropping, and data banks were part of
the Big Brother and Nosy Sister scenario. This fear for personal privacy is justified in the short
term. But in the long term, the opposite is more likely to happen, because the electronic tools
that permit privacy invasion are even more powerful in controlling an individual’s informational
autonomy. In the process, still another revolution is upon us, the revolution of access control. By
gaining such control individuals achieve bargaining strength over those who seek information
about them. They can establish a perimeter over the inflow and outflow of information. They
can create property rights in personal information. Transactions become possible, and markets
in private information can emerge.
Jeopardise to privacy have been associated with electronic media from the beginning. Gossipy
manual operators, party lines with participatory neighbours, and the absence of a warrant

requirement for wire tapping all created privacy problems. The first American patent for a voice
scrambling device was issued only five years after the invention of the telephone.
The New York Police Department, always on the technology frontier, listened in on telephones
since at least 1895. In 1916 this led to a public controversy about eavesdropping on a Catholic
priest as well as on a law firm involved with competitors to J.P. Morgan & Co. For World War
I munitions contracts.

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