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)