Page 338 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 12: Customer Privacy

Questions Notes
1. What is more important, national security, or consumer privacy - and why?
2. How, do you think, consumer privacy is hampered and was it reasonable?

Source: http://www.zdnet.com/blog/igeneration/blackberry-encryption-too-secure-national-security-
vs-consumer-privacy/5732

12.4 Summary

 Privacy is becoming a very contentious public policy issue. The danger, in my opinion, is
that Congress will rush into legislation without due considerations of the options.
 In particular, a poorly-thought-out legislative solution would likely result in a very rigid
framework that assigned individuals additional rights with respect to information about
themselves, but did not allow for ways to sell such property rights in exchange for other
considerations.

 In my view, legislation about rights individuals have in information about themselves
should explicitly recognize that those rights can be “leased” to others for specific uses, but
cannot be resold without explicit permission. This simple reform would lay the foundation
for a more flexible and more useful policy about individual privacy.
 In addition it would enable business models that would potentially allow for reduced
transactions costs and better matches between buyers and sellers.
 In early Oct. 96 two messages appeared that linked metrics and checklists. They came from
two authors (Barnes and Wilson) and were dated 10/8 and 10/10 respectively.

 Bob Barnes spoke from a Certification Flight Test perspective. He has noticed that there is
a marked difference in the CRM used by three-pilot versus two-pilot crews. If those
seeking certification do not account for these differences through effective training program
design and appropriate checklists, there can be a perception of an increased workload and
in some cases an unacceptable rating of the design by the line evaluation pilots.
 Good procedures are no guarantee for good performance. But that incidents and accidents
are not necessarily caused by poor performance in the technical areas; and, when they are
B co. Pvt. Ltd. train (human skill) or fix (mechanical) the problem away (B co. Pvt. Ltd.
hope!!)
 In either case our objective is finite so we develop finite measures to help us assess the
success of our fix. In the realm of human interaction B co. Pvt. LTD. have only recently (10
years or so) begun to train pilots, then crews, now teams in resource management. That
perception alone reinforces the assertion that the “operating envelope” is substantially
broader than the imagination of the procedure writer.

12.5 Keywords

CLV: Customer Lifetime Value In marketing, customer lifetime value (CLV), lifetime customer
value (LCV), or user lifetime value (LTV) is a prediction of the net profit attributed to the entire
future relationship with a customer. The prediction model can have varying levels of
sophistication and accuracy, ranging from a crude heuristic to the use of complex predictive
analytics techniques.
CRM: Customer Relationship Management
Customer Expectation: What customers expect out of the product consumption.

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