From Privacy Times, May 2, 2000
MARKETING FIRM SURVEY: INFORMED
CONSENT VITAL TO USE OF E-DATA
After conducting an opinion survey of Internet
users, a database marketing firm has recommended that e-commerce
Web sites post clear privacy policies and obtain the informed consent
of their customers before using their data.
“At the minimum, make sure all information is collected
using the fundamentals of permission marketing. This means ‘opt-in’
should be the default,” wrote Cyber Dialogue a market research and
database marketing company.
“Always facilitate an easy opt-out procedure on
every communication. This does not mean opt-in opens the floodgates,
rather it is only the first step in establishing a continuous dialogue
with your most valuable customers. Consumer ignorance about terms
like ‘opt in’ should not be taken advantage of.”
The survey found there was a strong desire for
personalization among Internet consumers and a growing awareness
of cookies and other data collection practices. Increasing numbers
are willing to give their names and other demographic data in exchange
for personalization, it found
“What many will not accept, however is the distribution
of personal information, including age, name, education, address,
salary or credit card number – without permission or compensation,”
Cyber Dialogue concluded.
The survey found that 88% were willing to give
their name, compared to 67% in 1997. Nearly 90% were willing to
give level of education, age, hobbies and attitudes toward the Internet.>
Some 59% were willing to give household income, compared to 44%
in 1997; 41% would reveal salary, compared to 29% in 1997; and 13%
were willing to give a credit card number, compared to 4% in 1997.
"While 38% of online users see the benefit
of receiving targeted marketing messages from a personalized site,
they do not appreciate targeted messages from sites that they have
not personalized or registered with, (as) it is a clear indication
that their information has been disclosed to a third party. Web
sites should not mistake a consumer's need for relevant content
as a sign of tolerance for unsolicited marketing messages,"
the report said.
"Over 95% of cybercitizens have received
unsolicited e-mail and the consensus is strong -- they are clearly
annoyed and have taken steps to prevent it. We view this marketing
technique, also known as spam, to be ineffective to the point of
being counter-productive."
Cyber Dialogue recommended that Web sites only
collect information that is absolutely necessary and "treat
it with respect."
"While published privacy policies are commonly
used to inform users of the company's practice and gain their trust,
the reality is that these policies are often inconspicuously placed
on the site, full of legal jargon and difficult to understand,"
it added.
"The long-term gain of retaining your high-value
customers clearly outweighs short term gain of selling them out.
Building a two-way dialogue is what this medium is all about."
"Privacy protection is an issue that is not
top-of-mind among consumers, but as soon as it is violated, the
latent sleeping giant awakes. Assure your customers that you are
proactively on guard to protect their right to privacy. Never compromise
this commitment for short-lived benefits." (www.cyberdialogue.com) |