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Classic relationship marketing diminishes the privacy of the consumer

Classic relationship marketing diminishes the privacy of the consumer

By Michael Gaffney

Privacy research firm, Pew Research, in the “The Future of Privacy” reported that ‘Internet privacy is a fantasy’ and that 55 percent of the population don’t believe that a ‘privacy-rights infrastructure by 2025 that allows for business innovation and monetization while also offering individuals choices for protecting their personal information in easy-to-use formats’ is achievable. We all need to remember that the remaining 45 percent is still a very large number.

Most disruptive events, political, social or technological, come from a tiny percentage of the population evoking a cause or an entrepreneur creating something new and needed. Dr. Martin Luther King and Steve Jobs were but two people in that 45 percent determined to make a change and they were quite disruptive to say the least. The doom and gloom naysayers who write provocative headlines like ‘privacy is a fantasy’ should provide motivation for the 45 percent who are concerned about privacy.

Relationship marketing is a relatively new phenomenon. It evolved out of the 1960’s when consumers began to have more competitive product alternatives to choose from and where there was sustained demand for those products. Merchants had to change from being focusing on the economics of supply to focus on demand. The foundations of what came to be known as relationship marketing – customer recruitment, retention and satisfaction – became the dominant focus of marketers for the past 50 years.

However, relationship marketing has seriously diminished privacy of the consumer. Why? Because by definition a ‘relationship’ typically means some form of intimate knowledge of the other party – in this case the consumer. In marketing terms, it means that the merchant, to effectively market to a consumer, needs lots of information about that consumer. Consumer data is captured, typically without prior knowledge or consent, in a number of ways by merchants. Facebook, Google and other social media sites have only accelerated the loss of privacy. Moreover, corporate customer relationship management (CRM) systems appear to be failing regularly in terms of data breaches and CRM’s are the key repositories of customer information.

So, what are consumers to do given all the scraping of our private information and the data breaches from CRM’s? Privacy and security have been foundations of society as long as we humans have been on the planet. Privacy is complex. We want privacy from our governments; privacy from the prying eyes of the public – especially if you are famous; privacy and protection from the bad guys; and privacy and protection from the merchants that hound us. Dodoname was created to address privacy from merchants and other consumer to business transactions and help address the risk of your data being stolen in a data breach.

How does Dodoname resolve relationship marketing and the loss of privacy? First of all, we designed a system that starts with the consumer in control of their personal and private information. Second, we designed a system that does not even capture your private information – only personal information. What is the difference between private and personal information? Private information is your actual name, street address, telephone number, credit card and banking information. Personal information is your sex, age (not birth date), postal code, married/single, likes, hobbies, etc. At Dodoname, we call the collection of your personal information your Persona. Remember, your Persona never includes your private information. Marketers don’t really need your private information if they have your Persona information. Hackers can hack us all they want but they can’t get what we don’t have. Relationship marketing and its problems with privacy breaches is solved when Consumers use Dodonames and Merchants market to Dodonames.

(Image: Flickr, Bernard Goldbach, link)

 

 

 

 

 

Posted in: Blog, Persona, Privacy

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