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Companies should rethink customer insights practices

Anuradha Shukla | Sept. 22, 2014
Legislators have changed the way companies collect and use data.

Companies should think about their customer insights (CI) practices differently due to changes in personal identity management (PIDM).

In a new Forrestor report, principal analyst Fatemeh Khatibloo notes that legislators have changed the way companies collect and use data.

This change is encouraging CI professionals to categorize the different types of data their firms collect and provide guidelines on how to govern the data.

The data landscape is continuing to evolve as customers have stopped sharing their personal information willingly due to its alleged misuse by marketers.

Media and regulators across the world are discussing reforms and accountability as proliferation of digital data can harm both named and unnamed customers.

Presently there are 112 pieces of legislation in the US Congress that address privacy and data breaches. The EU Commission is also set to update its outdated Data Protection Directive.

Self-govern approach

There is no self-govern approach to customer data and governance guidelines for customer data have also fallen far behind.

Customer insights technology has advanced leaps and bounds encouraging CI professionals capturing anything and everything they can.

These professionals find it difficult to decipher the often complicated customer data laws and perhaps this is why 33% of US online consumers don't do business with companies with questionable privacy policies.

This situation can take an upturn if organizations have a solid data governance policy as it will help retain consumers.

Marketers should create an organizationwide strategy for their customer insights professionals for capturing and application of customer/user data.

This approach should also be communicated in a clear and simple manner to that it is easy to comply with new policies.

 

 

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