Discussion
Focus is on CRM and Analytics.
Five years ago, the Wall Street Journal reported online travel booking company Orbitz Worldwide Inc. was steering people who used Apple computers to pricier hotels than Windows users. Orbitz officials said data analysis revealed Apple users were willing to pay higher nightly rates, so the company put the most expensive rooms at the top of the search results pages they saw.
Businesses are applying analytics to customer data at an exponential rate in order to tailor the user experience. When data analysis results in different customers being offered different products or prices, there's the possibility for problems related to privacy and fair business practices.
According to Pam Dixon, founder and executive director of the World Privacy Forum, a research and policy analysis group in San Diego, "Determining whether someone is going to be a loyal customer is fine. But then if you're changing the way you treat your customer based on that, that's where the questions come in."
Here is your Task for This week: If you were the Director of CRM Ethics, what measures would you put in place to make sure customer data was being used in ethical manner and how would you enforce it? If you say fines, how much? Please don't respond with "It Depends." If you provide the same answer as a classmate, I will be looking for a different spin.