CRM systems give marketers unparalleled insight into consumers' decision making process. Used ethically and effectively, CRM software can help sales professionals anticipate ordering opportunities or shorten sales cycles. When blended with targeted research, companies can use CRM applications to identify their most valuable customers over time--even when those customers' spending habits keep them under the radar. However, CRM software's ability to scale with storage and processing power raises concern for privacy advocates, who worry that companies can risk legal action if they learn too much about their customers.
Colin Beasty from CRM Outsiders cites a recent case in which the Federal Trade Commission outed Sears for failing to inform certain customers about how their web surfing habits would be monitored and analyzed against their purchasing history. Although customers willingly signed up for a promotional program, they didn't learn about the extent of the CRM system's tracking details until being alerted by FTC agents. By failing to disclose the extent of the information collected by their CRM software, officials at Sears risked their company's reputation without ever achieving the project's goals.
Beasty and other CRM experts warn companies to begin crafting clear customer privacy and ethics guidelines that can shape the future selection and deployment of CRM applications. CIOs, sales leaders, and other company officials can lay the groundwork now for successful CRM deployments that don't put customer information at risk. Furthermore, a growing number of consumers demand to know how their information will be used by retailers and vendors. A clear CRM systems policy that emphasizes service and security can become a selling point in itself, as well as an effective tool to grow sales.
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