The rapid advances in technology we've witnessed over the past few decades have produced products that make our lives easier, and vastly more productive, safe, and even fun and entertaining. At the same time, much of this technology has also had an impact on our privacy - usually resulting in less of it.
The advance of video technology has made for more entertaining movies and games, and the ability to cheaply and easily create movie memories of important events in our lives. It has also lead to increased surveillance of many aspects of our lives, often without our knowledge.
Technological advances in music and television recording devices allow the machines to learn what we like, and find and record similar songs and programs automatically. This saves us time, and enables us to hear and watch things we likely would have missed otherwise. In order to do this, however, they must collect information on what we listen to and watch, and when we do so. Sometimes this information is even sent back to the manufacturer to assist in developing updates and new products. Similarly, many supermarkets use technology to target coupons and other discounts based upon previous buying habits of their "club card" customers. The ability of these companies to attach this purchase information to specific customers has come under scrutiny and drawn some criticism in recent years.
In an effort to reduce response time and improve effectiveness of emergency services, the government now requires mobile phone manufacturers to include technology allowing mobile phone users to be located (and tracked). While this may be a very good thing for a mobile phone user who dials 911 in distress, it may present a serious invasion of privacy if the user is tracked in other circumstances.
The reduction in privacy due to the advancement of technology is an important issue, and is of great interest to many people. It was the cover story of a recent issue of Time Magazine, Congress has several bills on the issue, and many foreign nations and international bodies have taken up the issue. The issue is not just about what information is collected about consumers, but how it is collected, and what is done with it. Also of increasing relevance is the value of the information - is it something up for grabs for whomever can get it, or do consumers have some form of ownership over their personal information, and thus can expect compensation for its use? In essence, it is a question of whether personal information is a commodity.
Hence, marketers must take this issue seriously and carefully consider the implications of their decisions regarding the obtainment and use of customer data, and the design and marketing of technological products that impact the privacy of consumers who use them.
This issue presents an excellent opportunity for marketing companies to go back to the basic tenets of marketing: make sure you know what your customers want, and that you have the ability and resources to provide that. Just because technology can enable you or your product to do something doesn't mean you should. And while it may be easier to design or market products with detailed information obtained by technology that tracks customer purchasing and usage, it always comes with a price. While that price may appear to be free in dollar terms, it can be very expensive if the cost is in customers who feel invaded or betrayed. Trust is a hard won, and easily lost, commodity that can be vastly more valuable than the data gained through its loss.
Following are some key points marketers should keep in mind when making decisions regarding the privacy of their customers:
1. Have a clear privacy policy. Customers increasingly will look for this, and providing it to your customers clearly (not in fine-print legalese) may go a long way to assuaging fears and building trust. It may be possible to make the issue of privacy an asset and marketing opportunity for the company, perhaps a way to differentiate your firm from others who don't take the issue as seriously. Take care, however, to carefully construct the policy-do not spend more time wording it to sound good than you do actually making it good. Saying in large type that you sincerely value customers' privacy, then noting in fine print they must reply in triplicate within 3 hours if they want to be removed from your database will likely not be effective, and could seriously backfire.
2. Do not underestimate the potential for the public to react. Ill-conceived obtainment or usage of customer information could easily ruin a company's reputation. Do not become the poster-child of a company that violates public trust.
3. Be clear internally about what data you really need and how it impacts the privacy of your customers. Consider carefully these questions:
a. Where will you store the data?
b. Will it be stored securely?
c. Will the data be sold? If yes, consider the potential costs in addition to the short-term financial benefits (will your customers be placed on mailing or phone lists, can the information be misused, will it put your customers at greater risk for more serious issues, such as identity theft?).
d. Who will you share the data with? How would they answer the above questions?
4. Keep in mind that just because something is technologically possible doesn't mean it is what consumers want. Product developers may want to put all new technological advances into new products, and planners may want use new technologies to gather as much information about customers as possible, but remember that good marketing means responding to what your customers want, not necessarily what is easiest or most desirable (or always even most cost-effective) internally. Always be aware of the tradeoffs made between internal convenience and customer inconvenience or loss of trust.
Finally, it may be most important to consider what is the real value of customer information. Is it appropriate to compensate consumers for the information garnered from them? In other words, is privacy a commodity? While this may seem offensive to some consumers, it may be acceptable to others. It may turn out best to openly compensate consumers for their personal information, rather than to obtain it secretly (or even "discretely"), for free. Consumers may be willing to share more if they feel they have greater control over who sees their information, and how it is used.
