The next major catalyst for privacy and data-use legislation will come from marketers taking excessive license with consumer information, as opposed to out-and-out crime.
“As government has done more to increase security, people get used to sharing more information, and companies are being more laid back about using it,” Walter Janowski, a research director at Gartner, said.
Ironically, companies that move to the forefront of technology by integrating their operations, and give more departments access to the data resources, may be at higher risk for internal breaches of privacy. This occurs not out of malice, but rather through ignorance of stated company policies.
“Data need to be secured across the entire institution,” Janowski said. “Are the marketing people aware of the privacy policy on your Web site?”
These pitfalls can be easily avoided. According to Janowski, “You can do anything you want with customer information, provided you tell them about it in advance, and get their permission.” He also recommends communicating the value proposition in advance, that is, exactly what the customer stands to gain by handing over information or permission.
There are some common-sense approaches that can stave off alarming customers. Marketers should be careful of demonstrating how much they know about an individual. When companies receive highly relevant offers, the approach should be a “happy accident.”
Janowski offered an example of how not to wave data knowledge in front of a computer. He recalled receiving a letter from a mortgage-refinancing company.
“We have researched publicly accessible records, and notice you have a mortgage at [such and such]%,” the solicitation startled. “We can do better.”
Janowski was so turned off by this seeming intrusion that he did not respond to the solicitation.
