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Introduction
Selling customer information compares with sharing information and it depicts data exchange between the different firms, individuals, or technologies. With the increasingly complex analytic tools, practically all entrepreneurs enjoy some access to a broad range of information about their customers. Such business owners know where their clients live or where they can be found, the language they use in communication, their sex, as well as their levels of income (Chan & Chan, 2009).
Moreover, business owners take time to check the contact information provided by their clients prior to creating customer accounts for them.
This information has been handled different, with some business owners and marketing executives selling their customer information.
In the business to business (B2B) context, information sharing or selling of customer information could be termed as availing customer information to the trading partners (Pandey et al., 2010). This essay aims at investigating whether customer information should be sold or not. The essay will look at the arguments for and against this practice and then draw a conclusion as per the findings.
As a business person, I may collect a lot of sensitive information from the persons who visit my website and business enterprise or even use it in transacting various business operations.
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Undeniably, most business organizations utilize the customer information they have for their internal promotion and marketing purposes (American Bar Association, 2012).
Such purposes include the determination of the type of commodities or services for offering every time the client visits the site, or in the development of a targeted customers’ list who share likes and dislikes.
Besides their internal use, business firms may also offer ‘personally identifiable information’ with third parties or other affiliates (Null, 2013).
According to Yi-Ming and Chin-Fu (2010), the commonly shared information between the various trading partners comprise of the order status, forecasts of sales, shipment tracking, levels of inventory, schedules of production, specifications of commodities and their prices, capacity planning, as well as sales promotions.
Survey into the supply chain consider sharing or selling of customer information as an imperative mechanisms of solving the diverse uncertainties associated with the supply chain because setting up information-sharing mechanisms could result into the intensified interaction among the participants in supply chain. This could in turn foster an improved coordination among the participants in the supply chain (Chan & Chan, 2009; Yi-Ming & Chin-Fu, 2010).
In theory, sold customer information could be employed in development of an intuitive depiction of the organizational clientele that can be employed in customizing the organizational commodities and services offerings (Null, 2013). According to Yi-Ming and Chin-Fu (2009), several past surveys investigating the gains associated with selling of client information chiefly focused upon the way in which information sharing fosters business and supply chain performance via facilitating effective communication between the business partners. Precisely, organizations employ such shared information to help in making decisions in diverse hierarchical levels, thereby fostering the supply chain management and successfulness.
The American Bar Association (2010) claims that it is imperative for organizations to maintain the confidentiality of their customers’ information at all costs since breach of the same are exceedingly upsetting experiences. Furthermore, divulging customer information can abate the trust between a client and an organization.
Consequently, it is advisable for an organization to be in a position to explain any breach of their customer’s confidentiality in case a breach of the same occurred. Peppers and Rogers (2011) assert that every business enterprise must have some guidelines indicating the confidentiality employed by the firm. Moreover, they claim that customers have the right of questioning whoever breaches the confidentiality of their information to explain the rationale of doing so.
In a different review, Null (2013) found out that maintenance of the confidentiality of client information remains a vital factor since it enhances the safety of the clients with the business enterprises. Divulging client information hinders the growth of clients with their firm of choice due to denial of the so much desired freedom. There are several firms that value their customer information and this has been a key player in their success. For instance, the banking sector is known to hold their customer information in high esteem and this can only be shared only through a legal procedure.
Peppers and Rogers (2011) feel that customer information should not be shared since it is the main competitive tool that organizations hold against the others. Sharing of customer information could offer rivals a good platform to access such data and divert the clients to their own sites or firms. Therefore, marketers should be in the front line to agitate for the confidentiality and secrecy of their clients’ information at all costs. However, some data can be shared, but with agreements of privacy and confidentiality.
According to Marsden (2001), most companies think that they know their clients so well. Consequently, they believe that they have all the pertinent data they require to know their clients and prospects, especially when assessing their client information database. Undeniably, most firms have hundreds of thousands of their clients’ names, contact data, as well as addresses. For instance, financial services institutions may have all the details concerning their clients’ credit data, alongside their account numbers, as well as the clients’ spending habits. This data is exceedingly valuable and should not be shared with third parties. Therefore, client data should be shared sparingly in case it must be done.
In a further argument, Marsden (2001) claims that organizations should ask themselves whether their database system connect diverse units of business such that the system incorporates all client-related data. Such data include their visits to the web bearing in mind that all the information concerning the lifestyle preferences of clients can be utilized for the future offers of the organization. Regrettably, most client information databases employed by business-to-business and business-to-client sales and service establishments are mere glorified ledge systems and address records. The only exemptions to this are a small amount of firms ranked highest by their clients and stock market due to performance (Marsden, 2001).
In conclusion, it should not be perceived a big shocker that business enterprises are recording, as well as selling their clients information. No one can hide from collection of data completely. Actually, no one should anticipate living in the contemporary society without having their personal information being sold to advertisers. Likewise, firms exchange some customer information to ensure that they get the best records about a particular client. This essay concludes that it is wrong to share and sell customer information without their consent. It is imperative to involve the customers in all areas involving their confidential or general information. Therefore, selling of customer information should only be done via the client’s consent.
References
American Bar Association. (2012). Customer information and privacy. Retrieved on 15 November 2013 from, http://www.safeselling.org/privacy.shtml
Chan, H.K. and Chan, F.T.S. (2009). Effect of information sharing in supply chains with flexibility. International Journal of Production Research. 47(1): 213-232.
Information Resources Management Association., & Khosrowpour, M. (2006). Emerging trends and challenges in information technology management. Hershey, Penn: Idea Group.
Marsden, R. (2001). Managing customer information from cradle to grave. Customer Interaction Solutions, 20(3), 30-33.
Null, C. (2013). Businesses are loaded with customer information, but unable to act upon it. PC World. Retrieved on 15 November 2013 from, http://www.pcworld.com/article/2043860/businesses-are-loaded-with-customer-information-but-unable-to-act-upon-it.html
Pandey, V.C., Garg, S.K. & Shankar, R. (2010). Impact of information sharing on competitive strength of Indian manufacturing enterprises: an empirical study. Business Process Management Journal, 16(2): 226-43.
Peppers, D., & Rogers, M. (2011). Managing customer relationships: A strategic framework. Hoboken, N.J: Wiley.
Yi-Ming, T., & Chin-Fu, H. (2010). Effects of information sharing on customer relationship intention. Industrial Management + Data Systems, 110(9), 1385-1401.
Selling Customer Information. (2020, Jun 02). Retrieved from https://studymoose.com/selling-customer-information-new-essay
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