Privacy: the Achilles heel of the new marketing

Customer relationship marketing (CRM) is now a major growth area for most firms. An essential aspect of relationship building in CRM is the acceptance by both parties of the free transfer of information between the firm and its actual or potential customers. This free transfer of information has led to concerns about the consumer's ability to manage and benefit from this exchange process. Recent developments in technology and software have resulted in a situation where the balance of power between the two parties might be about to change, leading to a substantial threat to the development of interactive marketing and CRM. This paper reviews the literature on the nature of CRM and consumer concerns about privacy, and identifies the benefits to consumers and CRM companies relating to the exchange of information. The possible problem areas of privacy will be outlined, with suggested recommendations on how these can be minimised.