1. Customer Relationship
Management
Ethics in CRM
Presented by
Rahul Upadhyay
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2. Ethical Issues in CRM
The Operating Environment
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Hyper Competition
Increased Digitisation &
Data explosion
Customer Fragmentation Customer Sophistication
CRM

3. Ethical Issues in CRM
Customers Today
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Well informed & Specific about their needs
Require individualized , sophisticated &
interactive approaches
Individualization not impersonalized
service
Firms need to learn more about Customers
in order to fulfill their requirements

4. Ethical Issues in CRM
Digitization Impact
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Increase in avenues to Track customers – Cookies , Permissions
etc.
Heightened Concern for Privacy among Consumers
Social Media a key factor in generating & Maintaining Trust
Invasive behavior can generate distrust & destroy relationships

5. Ethical Issues in CRM
Ethics – What are they
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Business ethics are the values a company upholds throughout its operations.

6. Ethical Issues in CRM
Significance
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7. Ethical Issues in CRM
Key Issues
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• Data Privacy
• Collecting Customer data
• Storing Customer data
• Using Customer data
• Disposing of CRM data
• Spam
• Hacking/ Fraud / Data Loss

8. Ethical Issues in CRM
Reality Check
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• CRM Data & Analysis key to delivering products &
services as per Customer requirements
• CRM intelligence key to delivering Customer Value
and optimizing marketing efforts

9. Ethical Issues in CRM
The Privacy Issues
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10. Ethical Issues in CRM
Addressing Privacy issues
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• Privacy strategy ownership at CXO level
• Review Business and Technical capabilities to support Privacy initiatives.
• Internal awareness , training & education Programme
• Analyse all areas of potential consumer information and ensure
Compliance
• Identify locations of Information captured , its access and usage
• Formal Privacy Policy for internal use.
• Periodic 3rd Party audits for compliance and Gap identification .

11. Ethical Issues in CRM
Structural Response to Privacy concerns
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• Chief Privacy Officer looking at
o What information is captured and how
o How is the information stored within the organisation
o How is the information being used , by who and for what purposes
o Organisation’s Compliance with existing rules & regulations
o Global implication for Compliance & Privacy best practices

12. Ethical Issues in CRM
The Organisational Response
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Organisational Culture
Customer Involvement
Create Trust
Smart Usage of Customer Data
Transparency

13. Ethical Issues in CRM
The Organisational Culture
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Establish Integrity as a Core Organisational Value
Strict Ethical processes in Customer facing & Data Handling teams
Training & Education of the Teams
Code of Conduct
Supplier Code of Conduct
Transparency in all processes & dealings

14. Ethical Issues in CRM
The Code of Conduct
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15. Ethical Issues in CRM
Customer Involvement
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Customer
Consent/ Choice
Educate & Inform
Providing access
and Validation
mechanisms

16. Ethical Issues in CRM
Creating Trust
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• Walk The Talk – All dealings with anyone to be Fair & Transparent.
• All external stake holders inc. Customers & Suppliers are aligned with the
Norms of the Organisation
• All employees are equally aligned and share a Commitment to the
Organisational Code of Conduct at all times – no exceptions

17. Ethical Issues in CRM
Data Collection
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• What is the Data being Collected & How .
• Need to ensure that sensitive data is collected and transmitted securely
• How is the information being used , by who and for what purposes
• Critical to verify Customer identity and details.
• High Costs but necessary for ethical behavior

18. Ethical Issues in CRM
Using Customer Data
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• Establishing Boundaries
• Preference for anonymizing Data
• Establish barriers for data access
• The Right to be Forgotten- Opt-in / Opt-out mechanisms.
• High Costs but necessary for ethical behavior

19. Ethical Issues in CRM
Disposing Customer data
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• Safe Destruction mechanism for Customer Data
• No Data left over on obsolete equipment
• Clearly laid out Policies and Processes for data destruction
• Clear Communication with Customers about their Data

20. Ethical Issues in CRM
Data Breach & Hacking
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• Inform at the earliest , esp. Potential victims
• Communicate with customers , partners and employees
• Documentation
• Provide support
• Compensate

21. Privacy Issues
The Legislative Response
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EU privacy laws
US privacy laws
Indian privacy laws

22. Privacy Issues
The EU GDPR
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23. End Sem examinations
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• Why CRM is required, importance , advantages.
• Customer –Supplier relationships ,Individual Value Proposition
• CRM Vs ECRM .
• Service quality in Call Centres ,benchmarks
• Internet & CRM
• Generating Website Traffic , Website quality parameters
• KSF for implementing CRM strategy, Process Gap analysis ,CRM implementation process,
reasons for failures etc.
• Newsletter & emailers -importance, design
• Analytical tools & their application – RFM, CHAID etc. Developing Customer Profiles,
segmentation.
• Learning Organisations , what, how and why.
• Types of CRM - SAAS Vs On Premise CRM , Generic vs industry specific CRM systems
• Operational CRM & CRM sub systems . Features, functions and inter-relationships