Customer Relationship Management: Privacy and Security

Introduction

The modern information system is substantially involved with exchange and an assortment of personal information. This compilation of personal data in organizations and governmental institutions is, however, associated with insecure features. The insecurity involved in handling personal information has aggravated the implementation of privacy laws. This is due to poor handling of information which affects the performance of both employees and customers of a company. Legislation of privacy practices differs according to the legal power of regions. This has led to implementation of sound practices to avoid misuse of people’s private information.

Aspects of privacy legislation for CRM in Canada, European Union and United States

According to Beal (2005), privacy legislation is essential in customer relation management. In Canada, (PIPEDA) Personal Information Protection and Electronic Documents Act, a privacy act was introduced to deal with privacy laws. This act provides various regulations that manage the handling of personal information in organizations. This guides CRM managers to practice rights of privacy in dealing with individuals’ information. PIPEDA further permits individual people to approve the use of their personal information and accessibility to any changes made. This is done to ensure proper regulations are followed.

In Europe, several laws were put in practice concerning laws based on the Union Data Protection Directive act. This was aimed at defending people whose information is at risk of interference. The directive mainly governs transfer and use of information according to these set rules. In other countries such as the UK family values and personal information must follow the laid down rules as stated by the legislation (Samuelson, 2000).

The United States also has various rules governing the privacy of personal information. The main body defending rights of privacy is the Federal Trade Commission (FTC) and has control over companies and organizations. Therefore, it is vital that business companies observe the international rules on privacy legislation (Beal, 2005). This enables coordination between customer relation managers and their customers.

Benefits of Customer relationship management in companies

CMR is a valuable approach used to govern relations between a company and its customers (Lager, 2005). Most transactions are done using technological means to draw large numbers of customers and offer better services. This is enhanced by observing the customers rights while improving on necessary requirements. CRM schemes are efficient for a company because of several factors associated with customer relations.

The advantages of CRM in a business include the ability to obtain more customers by means of contact administration over other means (Cooper, 2005). This can be achieved by maintaining contact with customers and providing quality services to encourage and attract other customers. It also ensures proper communication between customers and sales marketers via the Internet to conduct businesses at a faster rate. The use of websites and database management facilitates easier classification of customers in the form of trust and dedication to the company (Peleen, 2006). This also enables the company to recognize its weaknesses and strengths in service delivery. For a person working in the CRM, the best strategy is to implement contact management. This is ensured by proper communication between customers and company’s management, which builds loyalty, and truthfulness hence promoting the relationship.

Conclusion

Customer relationship management together with privacy legislation is efficient in implementation of businesses development of companies. Practices of privacy rights in customer relations enable proper information transfer and use. Correct use of information is a main factor contributing to the growth of capital businesses. It is thus necessary to practice laws preventing privacy rights in CRM.

References

Beal, B. (2005). Security, privacy keys to CRM .News Editor, 14(6), 24-25. Web.

Cooper, J. M., Upton, N., & Seaman, S. (2005). Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices. Journal of Small Business Management, 43(5), 43-45.

Lager, M. (2005). CRM in an Age of Legislation.

Peleen, E. (2006). Customer Relationship Management. 2nd edn. NewYork: Pearson Education.

Samuelson, P. (2000). Privacy as intellectual property. Stanford Law Review, 52(13), 45.