Topical Videos:
Privacy and Interaction
• What is the Internet of Things? And why should you care? | Benson
Hougland | TEDxTemecula (16min)
• https://www.youtube.com/watch?v=_AlcRoqS65E
• Facebook and Cambridge Analytica (13min):
• https://www.youtube.com/watch?v=FXdYSQ6nu-M#action=share
• Privacy and Smartphone Apps: What data your phone may be giving away
(CBC Marketplace)
• https://www.youtube.com/watch?v=xx1AUupLn2w&feature=youtu.be&ab_channel=CBCNews
• Amazon – What They Know About Us (CBC “The Passionate Eye” 40min)
• https://gem.cbc.ca/media/the-passionate-eye/season-1/episode-161/38e815a-013101ce9ee
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
1
Chapter 9
IDIC Step 3, cont.:
Interact/Privacy Considerations
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
2
Managing Customer Relationships
…customers as
uniquely addressable
individuals
… customers, by
their value and their
needs, individually
Customer Insight
…more cost efficiently and
effectively
…some aspect of the
company’s behavior
or offerings
Customer Experience
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
3
Who owns a customer’s information ???
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
4
Privacy: Who owns customer’s info???
• There are different views on this
• In Europe, the general attitude is that the
consumer owns the data.
• In the United States, a more market-driven
economy, attitudes favour business ownership.
• Canada typically falls in the middle of these two
large economies
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
5
Privacy Attitudes
• Two simultaneous antithetical beliefs of our society:
1. We have the right to remain inconspicuous
2. We have the right to know the identity of someone
when we need to
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
6
Defining Privacy
• From customer’s point of view:
• Concern about criminal activity (data security)
• Concern about others knowing things about them that should not be
common knowledge
• Concern about being bothered when they don’t want to be
• From enterprise’s point of view: includes customers’ point of
view and:
• Getting information from customers who are comfortable giving it
• Using the information to build mutual value with each customer
• Protecting customer data as a valuable competitive asset
• Communicating data protection to customers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Privacy Attitudes…
• Opinions also differ according to what type of data is under consideration.
• Many agree that Statistics (dates of birth and car registrations) and other info collected by the
government lies in the public domain.
• Transactional data, such as the info collected by credit card firms is sometimes sold by businesses.
• In the U.S. firms own transactional data.
• To avoid violating customer trust, at a minimum, such firms should be transparent with customers about what information is
collected and how it is used, before customers sign up for their products (such as on credit card application forms).
• For personal customer info, enterprises should (and sometimes must) request customer permission
to collect and use. Explicit agreements help maintain trust levels.
• The info should enable the enterprise to provide superior value to the customer, for example, with more personal, relevant
communications and product offerings, thereby saving the customer time and effort.
• The enterprise should make an explicit bargain with the customer regarding these issues, and issue – and honor – a written
privacy pledge.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
8
Privacy Laws in Canada
• In Canada, there are Provincial and Federal regulations that govern
collection, use, disclosure and management of personal information.
 These include:
1. Federal:
 “Personal Information Protection and Electronic Documents
Act”, (“PIPEDA”);
 The Privacy Act
2. Provincial: Some province have laws that may apply instead of
PIPEDA
• For a summary of Canadian Privacy laws, use this link:
 Summary of privacy laws in Canada - Office of the Privacy
Commissioner of Canada
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
9
Bell backs off ad program that tracked
customers’ habits
from Toronto Star:
“Bell has scrapped a controversial advertising program that tracked their
customers' internet, telephone and TV usage. The advertising initiative had
aimed to track customer’s internet, telephone, and television habits to
create detailed profiles for advertisers”.
“The federal privacy commissioner ruled Tuesday that Bell Canada’s
“Relevant Advertising Program” violates Canadian privacy laws. The
commissioner also argued that because Bell charges to deliver telecom
service, consumers should have a say in further use of their data”.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
10
Tim Hortons 'misled' app
users,
broke privacy laws
Posted Jun 1, 2022, 4:00AM EDT.
•Tim Hortons app tracked users' location without their consent,
scathing new report finds
•An investigation by federal and provincial authorities found the coffee
company 'misled' users
released
reportgeolocation
on their findings
Wednesday,
“The Tim Hortons app asked for permission•Authorities
to access the
mobilethe
device’s
functions,
but misled many
condemning
the
actions
of
the
coffee
chain.
users to believe information would only be accessed when the app was in use. In reality, the app tracked users
as long as the device was on, continually collecting their location data,” the report found.
As well, the report says the app continued to collect “vast amounts of location data for a year after shelving plans
to use it” even though the company had no legitimate reason to do so.
The data was used to determine where the app user lived, worked, and where they were travelling. It also
tracked when a user entered or left a Tim Hortons competitor coffee shop, or a major sports venue. The company
says data was only used in a limited way to analyze user trends.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
11
Canadian company We-Vibe pays
$4million to settle privacy lawsuit
• A Canadian sex toy manufacturer has agreed to hand
over $4 million to settle a privacy lawsuit after it was
discovered its toy, the We-Vibe 4 Plus, secretly
collected highly sensitive personal data, including
dates and times the device was used, and the device
could be controlled remotely
• See the article in this weeks Weekly Learning
Materials
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
12
Privacy in Europe
• In contrast to the United States, the European Union
Data Protection Initiative makes it illegal to monitor
an individual for targeted marketing purposes
• EU privacy regulations standardize government
policies across Europe and make it easier for any
company to do business across the continent, but
hampers personalization and trade with U.S.
companies
• A Safe Harbor agreement allows U.S. enterprises to
operate in Europe according to minimal privacy
standards without litigation
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
13
European Union
General Data Protection Regulation
• The right to be informed
• The right of access
• The right to rectification
• The right to be forgotten
• The right to restrict processing
• The right to data portability
• The right to object
• Rights in relation to automated
decision making and profiling
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Cookies …
• Cookies are small files sent by a companies site to visitor’s devices
and stored on their browser.
• Cookies can provide valuable information to companies by tracking
and collecting visitor’s data from their browsers and sending back
to the website owner.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Data a cookie might contain about site visitors may
include:
• Website name
• Unique user ID
• Browsing habits and history
• Personal preferences and interests
• Links clicked
• Number of times a website is visited
• Time spent on a website
• Settings selected
• Account log-in information, including
your username and password
• Online identifiers like your location
and IP address
• Personal data like your phone number
and address
• Shopping cart items
With all of this data collected:
• Companies can use cookies to improve knowledge of customers
• And to improve product/services for customers as well.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Cookies … 1st party or 3rd party
• Not all cookies are the same:
• Some cookies are placed by first parties like the sites you visit
• Others may be third party cookies, like those from advertisers
• For example… if a user visits a website named news.com:
• A cookie placed on this domain by news.com is a first-party cookie.
• A cookie placed by any other site, such as an advertiser or social media site, is a third-party
cookie.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Cookies …
• Is accepting cookies a bad thing? It depends on the website.
• Who will gain access to your data
• What they will do with it
• Will declining a cookie will affect your ability to use that site.
• Legal trends are pointing to the elimination of “3rd Party” cookies
• each company will need to collect their own “first party” information, with their own
cookies.
• Opt-In or Opt-Out …Countries with Permission Marketing laws (such as Canada, Europe,
some U.S. states)have require companies to specifically obtain visitor permission to install
cookies
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Permission Marketing, Trust and Value
• Interruption marketing
• Unsolicited, mass marketing, irrelevant
• Wastes customer’s time, causes frustration and lowers trust
• Analogy: Propose marriage  rejection  propose to another person - repeat
• Permission marketing (Opt-In, and Opt-Out)
• Opt-In – permission specifically granted by the customers
• Opt-Out – ability for customers to remove permission
• Should be anticipated, personal, relevant
• Done properly, can save customers time, create value, and increase Trust
• Analogy: Ask someone out on a date  date over time  propose marriage
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
19
• What is the difference ?
• data privacy, and
• data security
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
20
• Privacy refers to the issue of avoiding customer trust violations regarding
personal information and should be governed by laws, and the firm's
data acquisition and maintenance strategies (e.g., the use of permissionbased, opt-in, transparent data use policies).
• Data security is concerned with the ability of unauthorized third parties
(such as hackers) to access a firm's customer data and should be
governed by the firm's data protection strategies (e.g., the use of
firewalls, etc.). Data security is also concerned with ensuring that your
business partners, such as other channel members like vendors and
suppliers, abide by your explicit customer privacy policies to ensure that
such data does not "leak out" beyond your control.
Managing Customer Relationships: A Strategic Framework,
Second Edition Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
21
Benefits of Good Privacy Practices
• Improvement in consumer and employee trust
• Reduction of risks associated with inaccurate or out-of-date data
• Reduction of cost by eliminating the collection and management of
unnecessary information
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
22
Today, managing customer experiences &
relationships:
Enterprises collect information about individual customers in a “virtuous cycle”
 To be able to deliver additional value to individual customers
 While protecting the privacy and security of that data
Privacy: Is whatever the customer thinks it is? There is a current gap.
Good privacy practices and transparency elevates the customer experience and
customer relationships
Good business relationships require trust… privacy is one of its underpinnings
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
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Protect Privacy and Earn Customer Trust
to Encourage More Interactions
• Create a culture based on customer trust
• Always ask how you’d like to be treated if you were the customer
• Make it clear and simple
• Use flexible opt-in policies
• Offer explicit bargains
• Accept that the lines are blurring among interaction channels
• Tread cautiously with targeted web ads
• Remember you are responsible for your partners too
• As interactions multiply, trust becomes more important
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
24
Privacy Policies: Best Practices
1. Make the pledge readable and easily accessible—easy to find, easy to read, easy to understand.
Let the customer people override the legal people. Be brief, concise, clear, and fair.
2. Clearly itemize the pledge/policy
3. State the benefits an individual customer can expect as a result of its use of his information
(faster or preferential service, reduced costs, etc.).
4. Specify how personal information will be used by the company.
5. Make commitments about how individual customer information will never be used.
6. List a customer’s options for directing the enterprise not to use or disclose certain kinds of
information. (Opt in, and Opt out)
7. State how a customer can change or update personal information it has collected.
8. Provide specific procedures allowing a customer to order the company to stop collecting data
about him, or to purge his information files at the company.
9. Specify the situations in which it accepts or denies liability for damages incurred through the
collection and use of customer data, such as through credit card fraud or misuse.
10.Identify events that might precipitate a notification to the customer by the enterprise, such as a
court subpoena.
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
25
Managing Customer Relationships
…customers as
uniquely addressable
individuals
… customers, by
their value and their
needs, individually
Customer Insight
…more cost efficiently and
effectively
…some aspect of the
company’s behavior
or offerings
Customer Experience
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
26
Potential ICE ?
©2022 Don Peppers and Martha Rogers, used with permission to accompany Managing Customer Experience and Relationships: A Strategic Framework, 4th edition (Wiley, 2022).
27