Privacy: Reduce your Customers' Concerns by Build
By: Anti Spam League | Posted: 27th December 2004
Before making a purchase from you, buyers need to trust your
company and think that your products and services will do what
they are supposed to. Do your marketing and online practices
help establish the trust necessary to convince prospects to buy
from you? What is the connection between privacy and trust?
Evidence shows that the two are closely correlated.
Since the beginning of interpersonal communication, trust has
been perhaps the most important influence on information
disclosure. Then, when commerce started, people would trade with
those individuals whom they trusted and would avoid those who
were perceived as non-trust-worthy. Intrinsically subjective and
hard to define, trust is a function of the amount and type of
control one has in a relationship. Social exchange theory
advocates that individuals weigh both the costs and rewards in
deciding whether to engage in social transactions. Aided by a
little common sense we can conclude that if the rewards outweigh
the costs, then the individual is likely to enter into an
exchange relationship whereas if the cost outweighs the rewards
there will be no exchange. This trade-off occurring inside
people's minds should not be overlooked since it ultimately
determines whether they will buy from you or not.
The same process takes place in cyberspace. That is, the risks
of disclosing personal information are weighed against the
benefits when deciding to provide information to a website.
Hence, trust is critical to disclosure in both interpersonal and
online relationships. This is where privacy concerns come in.
In a previous article; "How to write a privacy policy", we said
that privacy involves protecting our integrity as individuals
and our right to disclose or not to disclose our personal
information to third parties. Since technology has become such a
powerful enabler of data collection and utilization, one of the
biggest IT responsibilities is making sure that the personal
information their systems collect is protected from misuse and
abuse. Who draws the line that separates them both? This seems
to be quite an intricate issue.
As a consequence of the terrorist attacks of September 11 2001,
increased security is a reality in today's world. As the US
government collects more personal information about its
citizens, are Americans really confident that their personal
information is being safeguarded without their privacy being
compromised? A survey conducted by the Ponemon Institute, a
leading privacy think tank, in September 2003 uncovers some
interesting findings. The more than 6,000 Americans who
participated in this first annual Privacy Trust Survey were
asked to indicate their confidence, as it relates to protecting
privacy, regarding 60 different government agencies. The overall
results indicated that the majority of Americans surveyed (83%)
consider privacy a matter that is important or very important to
them. Nonetheless, many respondents indicated they have a high
level of uncertainty about the government agencies that collect
and use that information, thus creating a negative impression of
those organizations. The survey also showed that protecting
personal information is important to people of all ages,
education and income levels. Among the organizations scoring the
highest were hospitals, doctors, banks and the U.S. Postal
Service. Those ranking lowest included retailers, grocery
stores, telephone companies and the newly created Department of
Homeland Security. Although at a first glance it might seem
somewhat strange that two federal government agencies could
score so differently on the survey, a closer look would explain
the apparent discrepancy. When you compare the two, it is easy
to see why consumers trust the mailman more than the people
fighting terrorism. The Postal Service has more than a century
of proof it can be trusted, while the Department of Homeland
Security does not yet have such proof.
A number of studies of interpersonal exchange situations have
confirmed that trust reduces the perceived risks or cost
involved in revealing private information. As a case in point,
Jarvenpaa and Tractinsky in their 'Internet Consumer Trust
Model' (1999) found that trust increases confidence in a
company, which lowers the perceived risk of electronic exchange
with that company and, therefore, increases the likelihood of
consumers engaging in electronic transactions. Similarly,
Swaminathan et al. in the 'Exchange Model' (1999) established
that consumers prefer to do business with web sites that they
perceive to be reliable, honest, consistent, competent, fair,
responsible, helpful, and altruistic, all of which are main
components of trust.
All of the above indicates that the role of trust in
facilitating disclosure is especially critical in online
exchanges, where computer-mediated communication replaces
physical contact. Other potential issues on the Internet
include; technical difficulties for people who are new to the
online world, lack of ability for consumers to physically
inspect goods prior to purchase, and new companies that have not
been in the market long enough to establish good reputations.
Trust is important because it contributes to building a good or
bad image of the company before the customers' eyes. Negative
images are very hard to change. This is why this is such a
delicate and critical issue.
So what can you do to get your customers to trust you? The
following tips can help you build trust, increase sales, reduce
your customers' privacy concerns and keep them coming back.
.Reduce Perceived Risk: Consumers' overall regard for a company
strongly influences perceptions of trust and perceived risk.
Personal evaluations are made on the basis of many things, for
example, firm reputation or personal experience with a company.
Nonetheless, in the case of new companies where reputation and
personal experience are lacking, personal evaluations are made
on the basis of a company's observable attributes or signals,
such as, self presentation through advertising, customer service
interactions, or stated policies. Also, one of customers'
biggest concerns is how well your product or service will
perform. It is important that you clarify the value you provide
and state your commitment to ensuring that your customers are
extremely satisfied about your product and services. You must
use all communication means at your disposal to enhance the
customers' experience on your web site, which in turn will
reduce their perceived risk.
.Use Clear Language and Give Examples: It is also important that
you post a clear privacy policy on your web site and that you
use Plain English in every piece of information you write. Many
web sites like to use sophisticated language to look
professional but they fail to see that they might be losing
customers as a consequence. Giving examples is a good tool to
increase credibility. Tell a story instead of making impersonal
and exaggerated claims of what your company or your products do.
Use case studies to tell what you did for whom and the
difference it made in their lives or their business.
.Personalize Your Marketing: Personalizing your communications
is definitely a trust booster. People like to do business with
people - not with faceless companies - and they feel a lot
better when you refer to them as 'Bob' or 'Mary' than when you
simply call them 'Dear Customer'.
.Give Something Away: Evidence suggests that when you give
something to people, regardless of the cost, they are more
likely to trust you and return the favor by buying something
from you or providing you with more of their personal
information. For example, you can use an ebook, an article, a
workshop or a free demonstration to build trust.
.Adhere to Recognized Seal Programs: Enhancing perceptions of
web site privacy protection via features such as privacy
statements and seals helps increase regard for the company and
trust. TRUSTe and BBB Online are two well regarded seal programs
that can contribute to your efforts of building trust. In
addition, you can take a step further by telling your visitors
that your web site adheres to anti-spam practices by displaying
The Anti SPAM League seal. This organization, formed
specifically to combat the spam problem, has a seal program for
web sites that are concerned about email communication. You can
become a member for free by visiting www.AntiSpamLeague.org.
.Make Contact Easy: If you want clients to get in touch with
you, make it easy for them to contact you. Put your phone number
and your other contact information on all your marketing
materials - including your web site -. When you call them, give
them your phone number again at the end of the conversation and
tell them to call. This is another powerful way to build trust.
.Stay in Touch: The people you see and talk to on a regular
basis are usually the ones you trust the most. If you sell
services or high end products, a personal phone call is one of
the best ways to answer prospects questions, and to establish
trust. If you have a web site, it is a good idea to periodically
contact your customers through newsletters containing
information you think might be of interest to them. One key
point here: make sure customers have manifested an interest in
receiving such information and have given their permission via
an opt-in option or another similar mechanism. Remember that
permission always builds trust, rapport and respect.
As stated before, the degree to which Internet users think a
commercial web site protects their privacy will positively
influence their overall regard for the company and trust of the
company's web site. Once achieved, trust becomes one of the
company's most valuable assets. Not only does trust eliminate
skepticism, but it also has the power to transform visitors into
customers for life. Following these guidelines can help you
avoid missteps that can negatively impact your brand, public
goodwill, and customer satisfaction/loyalty (e.g., 'trust').
If you want to learn more about this and other related topics,
check out www.Anti-Spam-League.org. This organization offers
free membership and the chance to access a wide amount of
relevant information on privacy, spam, email abuse, Internet
fraud, responsible marketing and several other topics.
About the Author
The purpose of the Anti SPAM League is to help consumers and business owners reduce the amount of SPAM they receive. In addition, our Anti SPAM organization believes that educating site owners in the area of SPAM prevention and ways to successfully and responsibly market their sites, is key in making a difference.
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Tags: prospects, integrity, marketing, common sense, third parties, advocates, interpersonal communication, enabler, cyberspace, rewards, relationships, relationship