Customer Lifecycle Management (CLM) is a brilliant business tool that enables a business to take care of a customer’s requirements, end-to-end. Even before a customer is onboard, CLM gets to work in an efficient manner, ensuring that the prospects of gaining a customer are amplified. Thereafter, CLM takes over and handles all the stages of a customer cycle, with utmost important given to maintaining, or even enhancing, customer loyalty.
However, in the midst of all these strategies, there is one aspect that is sometimes overlooked, and that is the issue of customer privacy. Unfortunately, when a business fails to realize the significance of this important component of CLM, it is putting the customer’s interests as well as its own business interests at risk.
While a business may have the need to collect as much data about the customer so as to offer a more personalized shopping experience, the customer may not take this in the intended spirit. Moreover, privacy laws are being revamped frequently today and this means that apart from hurting the prospects of achievements on the business end, you could end up being on the wrong side of the law too! The risks therefore range from losing a customer to losing your business!
The business world of today is complicated. There is a very thin line between understanding the need and wants of your customer through various avenues that the digital sphere offers, and privacy invasion. However, according to the Truste Privacy Index US Consumer Data Study for 2013, 88 to 99% of consumers would not like to share personal data like surfing behavior, location or other contact information.
One could argue that in a world where every detail of a person is available on social networks, anonymity is indeed an outdated concept. After all, aren’t the details of almost every digital identity up on display on various social platforms for the world to see? However, there is a wave of privacy and security concerns and every policy that was until now taken for granted, is being revamped.
The domain of customer privacy is a hazy one at best. While gathering data related to your customer is an accepted way of enhancing your marketing efforts today, a line is simply difficult to define in real terms.
To top the issue of customer privacy, security concerns are a hazard too. After all, any customer data that a business possesses is the business’ responsibility and any harm that comes to this data will of course have its consequences. Here are a few instances that made headlines for all the wrong reasons.
Successful multinational retail corporations in the US have been causing privacy concerns for quite some time now. While they collect data to enhance their services to customers, some of them have been known to share this data with outside parties as well. Just last year, the fact that Wal-Mart possesses the data of nearly 145 million Americans made news. Compare this to the claim that the retail chain shares this data with fifty other parties!
The IoT wave may be making headlines in the tech world, but it is also giving rise to privacy concerns on the ground. After all, which customer would like the idea of his television, refrigerator and even security camera sharing his data with corporations?
Data breaches have not gone unnoticed. The Target data breach story is a major one that is still on everyone’s mind. The fact that it compromised the details of nearly 70 million customers makes it a serious issue indeed. From Paytime’s data breach story that has potentially affected 233,000 customers to data compromises at even health organizations, the stories are many.
In the midst of all this chaos, the one question your business needs to answer is this – Does your business or any of its associated organizations invade a customer’s privacy in any way?
At Conneqt Business Solutions, we ensure that our Customer Lifecycle Management (CLM) services derive customer value through upright and updated industry practices. While customer prospecting and acquisition remains our goal for your business, doing it the right way, without invading the privacy of your customers, is our primary concern. Download this whitepaper to know more on the best CLM industry practices the Conneqt Business Solutions machinery works on to boost your business prospects, the ethical way.