Privacy Pressures Could Mold CRM Strategies

Compiled ByDeborah Austin The privacy vs. personalization tug will weigh heavily in customer relationship management (CRM) strategies this year, suggests research and advisory firm Gartner Inc., Stamford, Conn. In fact, 40% of firms with already-installed CRM solutions will rethink them, with emphasis on finding a balance between privacy and personalization, says the company's report "Gartner Predicts 2002: Customer Relationship Management." Customer demand will require privacy concerns be adequately addressed -- "rethinking how information is gathered, how customers can access and control that data and how enterprises can safeguard it from parties that might want it but shouldn't have it," says Scott Nelson, vice president and research area director. Some states are discussing legislation regulating consumer-information use, which could force such changes anyway, he says. Additionally, privacy-savvy customers will spotlight personalization and real-time analytics. They will want to see why personal data is being gathered, and expect the CRM experience to reflect intelligent use of it. "Otherwise, enterprises will not be in a position to ask for the data at all."