How would you respond to this request?

Question

You are the CPO of a midsized manufacturing company, with sales of more than $250 million per year and almost $50 million from Interent-based sales. You have been challenged by the vice presidet of sales to change the company's Web site data privacy policy from an opt-in policy to an opt-out policy and to allow the sale of customer data to other companies. The vice president has etsimated that this change would bring in at least $5 million per year in added revenue with little additional expense. How would you respond to this request?

Answer 1

Nike.

Carpe diem!

Answer 2

This depends on a few things.

1. What do I, as the CPO, think is the best policy?
2. What is the net profit from the additional revenue of $5M? Let's say with a revenue of $250M, your net profit is $10M. By changing this policy, your revenue goes to $255M and profit increases to $14M. Your revenue increase ~2% but increased the profit by 40%. This is significant from per share basis.
3. Does the VP of Sales know anything to make that policy change?

Do note that just because the VP wants something done, it doesn't necessarily mean it's a good strategy. You have the option to counter his point if you disagree with the decision.

Of course, if you do agree with the decision, then you would want to send out an email to the customer of the change and put a disclaimer on your website as the new customers are entering their email addresses.

Answer 3

Your internet based customers will be unhappy. Most will leave you, some will also bad mouth you, and others might even try to sue you. You're taking an almost guaranteed chance of losing a proven $50M per year just to possibly gain 5M per year. Once the word gets out. You'll almost surely lose the $5M too. Not a wise move in my opinion. But then, I'm not a VP or a CPO (whatever CPO stands for). I'm a HSD (High School Dropout).

Answer 4

1. Since this involves an invasion of privacy, a mass mailing with clearly spelled out agenda should be sent to clientele.

2. Opt In/Opt Out, it must be noted, is generally viewed as a intrusion, inconvenience and turn off. The company may well lose revenue because it will no longer be trusted.

3. Consider the annoying mail. But, consider on a larger scale the SPAM that makes internet experience tedious. One cannot truly get on with their mail until they have rid themselves of the annoying 'mosquitoes' that your VP proposes to launch on them.

4. My advice is that 5M is 'chump change' compared to what the company already yields. Why complicate things? Why anger clientele? If you want to generate new revenue, better your products. Better is best.

Good Luck and Warm Regards.

Answer 5

Good question. I know so little about it, but...

It seems like the request isn't as invasive based on the nature of the business. If the company were to be involved in or dealing with more personally sensitive data it might raise red flags with clients.

However, is the 1.5% increase in total revenue worth the risk of 'exposing' a customer's personal info?

As a liberal business-minded individual, I've never really understood the strategies that corporations use to squeeze extra dollars when its model seems to be holding water already.

Answer 6

By reminding the vp of sales that all the customers to date will want their data private if that is waht they choose, unless they are explicitly asked and agree to change. the cost of this process has to be rolled into the equation, and may lead to loss of customers.

Answer 7

I wouldn't do it because you will lose buisness. If you start selling your mailing list some people are bound not to be happy about receiving unsolicited junk. I would make it easier for people to opt in.

Answer 8

Would not do it , and that's why have zero chance at such a position even if skills were possessed. People interested in long-term grow and not quick fast buck are not favored in today's business climate.

Answer 9

I would refuse to sell customer data, that is an invasion of their privacy.

Answer 10

Tell the VP that 'THAT'S A GREAT IDEA!'

Cuz, you know, everybody else is doing it that way anyways - you have to opt-out.

Answer 11

i'd do it for the sake of my job, but would also do my best to make sure that every person involved KNEW for sure that they had to opt out.. make it very clear and plain in big bold writting that they can't miss.. hiding it in the fine print is kinda unethical.