This tongue-in-cheek video stokes the fire in terms of the on-going debate with the convergence of personal data and the ability to share corporate databases across all areas our lives and relationships. It’s a satirical yet scary look at where many consumers think the world of data and CRM is headed.
While it is true that, unbeknownst to average folks, marketers employ complex data crunching and predictive analysis behind the scenes, the pizza order scenario represents an application that no one – marketer and consumer – would like to see. No matter how a process may simplify or tailor a purchase, or identify a preference, we can’t believe this is a true representation of where things are going. It goes well beyond what is expected, accepted or reasonable.
But that matters very little. The perception exists. And, that is all that is needed to create paranoia. It does not help that the growth of digital channels, social networks and other platforms have all established a reliance on data to drive the experience. Current practices just seems to legitimize such concerns.
Now, marketers steeped in data and digital channels know that this not the future. However, it is getting harder to explain what the future holds as technology reduces all barriers and consumers continue to raise their voices. The video suggests consumers “take action” to prevent this kind of data abuse from becoming reality. This is always the precursor for government to step in and potentially become the scariest part of the equation for both sides.
Do you believe the Orwellian picture painted by this video? Is it far-fetched, realistic or simply alarmist? What are your thoughts on the future of CRM and data in the digital world – both as a marketer and as a consumer?
The Future Of CRM, Data And Privacy
12 Monday Jan 2009
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Wow – great (scary) video!
I think it’s definitely alarmist, and totally fans the flames of fear that you mention in your post. I know many people who are concerned about just how much companies know about them, and – more importantly – what they do with the data.
I think part of the misconception that has caused this is the industry calling most client data stockpiling “relationship management”. If companies used information to build a better, real “business-to-consumer (or business)” relationship with their customers, I think people would have a lot more respect for them.
People are scared of companies without scruples, which have always existed.
That’s my 2c.
even in this economy your 2c are still valued! Thanks Scott.
it is most definitely how you use the data in smart and specific ways – not just stockpiling. I think the video is alarmist in that most companies can barley scratch together basic segmented programs that serve to build relationships. Most are simply not there and progressive on how they use it. So, the level of sophistication depicted in the video is way beyond what anyone is likely to pull off in the foreseeable future.
Of course, there will always be the rogues and the marketing equivalent of “evil doers” that will go beyond what is reasonable and right and mess it all up for those of us with good intentions for our database marketing efforts. Those are the problems that will paint the industry with a wide brush and bring in the legislators to look like they are actually doing something important for consumers.
Time will tell.
Michael,
This issue is really no different than the invention of dynamite by Alfred Nobel, used properly it can be used as force for positive creation or….
We try to keep the issue under control by creating data silos because we recognize that we don’t trust ourselves.
however consider that
1. as the privacy line gets pushed out over time, parts of the scenario become more likely and ‘acceptable’ to some
Norwich Union in the UK have a GPS enabled system that is used to monitor and charge (novice) motorists based on their driving behavior. Travel over the speed limit – premium charge, travel through riskier traffic environments – premium, inexperienced drivers driving on highways – don’t even bother.Travel 50 miles – pay $x, 3000 miles – pay more.
A cool application of technology to provide a fact based, cost appropriate service. But what happens if we monetize that database and look to charge a premium on life insurance because the driver has a heavier foot or spends too much time at clubs/bars?… not outside the realm of possibility…and not dissimilar to the pizza example
2. We need to recognize that privacy is growing in value not declining – and from a pure economic standpoint that means that it’s becoming more scarce therefore valuable.
With hands over our hearts we proclaim the information is being gathered and used purely to enhance customer relevancy, but the issue is much more complex than its potential impact on directed marketing/crm.
Who pays for data breaches? What about the cost of reinstating customer identity. Look at what happened in Canada with the “do not call” list – and how ‘rogues’ have misused the data – which is now ‘out there’ for any other unscrupulous ne’er-do-well. Have you heard of any offers or apologies to the people on the list?
in the final analysis we need to clearly understand and put some parameters around some key questions – some of which would include:
a)How is the data being used to enhance customer relevancy?
b) Is it to the customer’s benefit or to the brand’s benefit?
c) Can customers reach the company and ask to see their data and how it’s being used and scored?
There are no simple right or wrong answers, nor is government involvement an inferior outcome. This is a critical issue that can not be left to data gatherers to define. it requires reasoned thought and debate from all points of view so that we come to some reasonable consensus in recognition that data is the new currency of our economy.
thxs for the question
i look forward to the debate