Recently, Instagram came under fire for their new privacy policy changes, stemming from the consensus that the photo-sharing company could profit from user information and photos. On the flip side, the new Foursquare privacy policy is designed with the customer in mind in an effort to protect the company from the same reaction that plagued Instagram and facilitate the transition to appease their user base.

Focus On The Customer

According to a recent article in PCMagazine, Foursquare sent an e-mail to their customer base stating that the new changes would take effect on January 28, 2013. As for changes in the privacy policy, the articles states, "Foursquare will now always show users' full names across the service instead of its current mix of full names and 'first name, last initial' names that, according to the company, users found confusing." The article goes on to illustrate how businesses will also see an "expanded list of users who have checked in to their establishment" in their Foursquare accounts.

These changes may be small, but Foursquare emphasized the customizable features of the new changes in hopes of stifling user outcry. With the changes, the company demonstrates its understanding of their customer base and target market - they hold the customer's hand all the way through the process. Unlike Instagram, Foursquare is educating their customer base, ensuring they are aware of the changes. This is most a move to prevent a customer revolt based on any misunderstandings. This approach suggests a renewed focus by companies in customer retention and the methods businesses use to manage their data; instead of the traditional e-mail blast with a small memo, companies are looking ahead, starting with the consumer.

Managing A Thriving Customer Base

Businesses thrive on a blend of customer awareness, calculated business decisions, and successful product launches. Midsize businesses must rely on customer understanding while at the same time creating products that enrich and align themselves with the consumer's needs. IT specialists at midsize businesses can use the Foursquare privacy policy, and its execution, as an example of a successful approach for managing data while remaining transparent.

The company has in fact gone above and beyong simple transparency. "Foursquare has also generated an easier-to-read version of its privacy policy for those who don't want to (or can't) peruse the more legalese-drenched version. Dubbed 'Privacy 101,' the document calls out - in plain language - exactly the kind of data that Foursquare uses for its service and what it does with that data once users have submitted it." With its transparency, Foursquare eases their customers into changes instead of executing said changes without customer input or knowledge. It's a simple approach, and businesses and IT professionals can look to Foursquare as a guide for customer retention and an effective way to manage consumer data.

This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. Like us on Facebook. Follow us on Twitter.