Human Issues of IT Application on CRM: Privacy, Trust, and Customer Retention

摘要

The emerging of customer relationship management (CRM), empowered with information applications such as data warehousing, data mining, and data matching, enables the business to depict a transparent profile of their customers. However, such assaults on business customer data also cause great concerns of their customers in data security and privacy. Such concerns on privacy will endanger the trust relationship, the basic successful ingredient in e-commerce, between the customers and business. This paper discusses the human issues of IT applications on CRM. These issues will focus on the privacy concerns caused by the application of IT, and how such concerns will affect customer trust formulation process, customer loyalty, customer retention, and customer profitability. Finally, this paper suggests business to apply privacy impact assessment in the CRM planning and IT applications, and also recommends business to employ an enterprise approach to formulate and implement privacy policy.