2. Ethical Issues in CRM
The Operating Environment
2
Hyper Competition
Customer
Fragmentation
Customer
Sophistication
Digitisation & Data
explosion
3. Ethical Issues in CRM
Customers Today
3
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
4
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
5
Business ethics are the values a company upholds throughout its operations.
7. Ethical Issues in CRM
Reality Check – The Business imperatives
7
• CRM Data & Analysis key to delivering products &
services as per Customer requirements
• CRM intelligence key to delivering Customer Value
and optimizing marketing efforts
8. Ethical Issues in CRM
Key Issues
8
• Data Privacy
• Collecting Customer data
• Storing Customer data
• Using Customer data
• Disposing of CRM data
• Spam
• Hacking/ Fraud / Data Loss
10. Ethical Issues in CRM
Addressing Privacy issues
10
• 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
11
• Chief Privacy Officer overseeing
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 to Privacy Requirements
12
Sensitive Organisational Culture
Customer Involvement
Create Trust
Smart Usage of Customer Data
Transparency
13. Ethical Issues in CRM
The Organisational Cultural Changes Reqd.
13
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
15. Ethical Issues in CRM
Customer Involvement
15
Customer
Consent/ Choice
Educate & Inform
Providing access
and Validation
mechanisms
16. Ethical Issues in CRM
Creating Trust
16
• 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
17
• 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
18
• Establishing Boundaries
• Preference for anonymizing Data
• Establish barriers for data access
• The Right to be Forgotten- Opt-in / Opt-out mechanisms.
• Operationally intensive but essential
19. Ethical Issues in CRM
Disposing Customer data
19
• 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
20
• Inform at the earliest , esp. Potential victims
• Communicate with customers , partners and employees
• Documentation
• Provide support
• Compensate
23. End Sem examinations
23
• What are some of the different parameters of Customer knowledge used in CRM?
• Features of a Relationship.
• forms of Mass Customisation.
• A/ B method of Data analysis
• Offensive & defensive Strategies.
• Customer Lifetime Value . Importance
• Segmentation, parameters for b2b and b2c markets
• Types of call centres , performance metrics
• Phases of a Customer Relationship.- objectives & comms plan
• Components of Operational CRM
• Parameters for CRM tool selection
• Types of CRM . Cloud based CRM , Client/ server CRM systems etc