Final answer:
A company must ensure data privacy compliance when tracking customer defection. Prioritizing data privacy is crucial legally and ethically before considering analytics, surveys, or promotions as part of retention strategies.
Step-by-step explanation:
With regards to tracking customer defection, a company must absolutely ensure data privacy compliance. Companies are expected to handle sensitive customer information responsibly, and this encompasses proper data management, adherence to legal frameworks, and the establishment of trust with the customer base. While implementing advanced analytics, conducting regular surveys, and offering discounts and promotions can all be part of a comprehensive customer retention strategy, prioritizing data privacy is a legal and ethical necessity that underpins all other activities.