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The Cost (And Benefits) Of Customer Data Privacy

Story:

According to a new survey by Jupiter Media Metrix, nearly 70 percent of US consumers are concerned about privacy online - but only 40 percent take the time to read privacy statements.

Site privacy statements are found confusing by at least 70 percent of site visitors.

Jupiter forecasts that as much as $24.5 billion in online sales will be lost by 2006 due to fears about data security and online privacy.

Analysis:

Jupiter recommends both safeguards for customer data and customer education to make sure that your customers know what they can reasonably expect. An analyst states

"Companies should clearly and pervasively communicate their policies on data gathering and use of data to make trade-offs between information and benefits increasingly clear to consumers."

They further recommend that businesses identify customer segments that are most likely to respond to marketing based on their privacy concerns.

Link:

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