An Eye on Privacy
| Category: Marketing | Date: 2001-03-07 |
Forget about the pending Microsoft breakup, the demise of Internet retailers, and the roller-coaster stock market. The real hot topic on the Internet today is PRIVACY!
Marketing on the web can be a very data-driven endeavor, and those companies that use the data effectively for target marketing and delivering customized services are realizing the benefits. Many Internet hotshots have business models that rely heavily on consumer data - Amazon.com, DoubleClick, YesMail, etc.
The significant question that has surfaced is where the line between invasion of privacy and customer focused and efficient targeted marketing is drawn. Many companies are struggling with this issue.
DoubleClick has combined consumer online data with their offline data, and is being sued over it. RealNetworks Real-Jukebox was collecting users music listening habits and Microsofts Windows 98 Registration Wizard was sending hardware information back to Microsoft without consumer knowledge. Each discontinued these practices when pressure from public concern mounted.
Organizations such as TrustE, BBBOline, and SecureAssure that are supposed to be the consumer watchdogs for the industry have largely been ineffective with little power of enforcement, and are relatively unknown entities to consumers. The threat of the government getting more involved in the privacy issue seems to be becoming more and more of a reality.
We believe that the best solution for business today involves the following initiatives:
1) Consumers are made aware any time information is being collected about them or their behavior.
2) Consumers have the option to not provide the data.
3) Consumers are made aware if their data will be shared with partnering companies, and have the option to not have it shared.
4) Consumers are made aware of how this information will be used in marketing efforts.
5) Consumers have access to all of the data a company has about them AND they can modify this data however they choose.
The last point is the most radical, but forward-thinking idea. With the world evolving more towards a customer-driven shopping experience and the increasing privacy concerns detailed above, consumers will eventually demand access to the data. They not only will want access, but they will want to modify and update it as they choose - and why shouldnt they, it is information about them!
Businesses that are unable to provide this level of data access, will loose the authorization to engage in target marketing activities with their consumers. Those that can provide this access, will benefit enormously. Their information will be more accurate, more up-to-date, and cleaner. Providing this level of access will actually improve a companys targeted marketing efforts!
Giving consumers access to all of their data is not an easy one. It involves complex data integration and a number of tough business decisions. The roles of database builders and integrators, along with relationship marketing experts will be more and more in demand. Begin thinking of all of the places data is captured about a consumer, what it takes to integrate it, and how to provide consumers with access to it - No small task, get started now so that your business can continue with focused & efficient targeted marketing!
About the author
DBMarkets@aol.com
http://www.msdbm.com
Marketing on the web can be a very data-driven endeavor, and those companies that use the data effectively for target marketing and delivering customized services are realizing the benefits. Many Internet hotshots have business models that rely heavily on consumer data - Amazon.com, DoubleClick, YesMail, etc.
The significant question that has surfaced is where the line between invasion of privacy and customer focused and efficient targeted marketing is drawn. Many companies are struggling with this issue.
DoubleClick has combined consumer online data with their offline data, and is being sued over it. RealNetworks Real-Jukebox was collecting users music listening habits and Microsofts Windows 98 Registration Wizard was sending hardware information back to Microsoft without consumer knowledge. Each discontinued these practices when pressure from public concern mounted.
Organizations such as TrustE, BBBOline, and SecureAssure that are supposed to be the consumer watchdogs for the industry have largely been ineffective with little power of enforcement, and are relatively unknown entities to consumers. The threat of the government getting more involved in the privacy issue seems to be becoming more and more of a reality.
We believe that the best solution for business today involves the following initiatives:
1) Consumers are made aware any time information is being collected about them or their behavior.
2) Consumers have the option to not provide the data.
3) Consumers are made aware if their data will be shared with partnering companies, and have the option to not have it shared.
4) Consumers are made aware of how this information will be used in marketing efforts.
5) Consumers have access to all of the data a company has about them AND they can modify this data however they choose.
The last point is the most radical, but forward-thinking idea. With the world evolving more towards a customer-driven shopping experience and the increasing privacy concerns detailed above, consumers will eventually demand access to the data. They not only will want access, but they will want to modify and update it as they choose - and why shouldnt they, it is information about them!
Businesses that are unable to provide this level of data access, will loose the authorization to engage in target marketing activities with their consumers. Those that can provide this access, will benefit enormously. Their information will be more accurate, more up-to-date, and cleaner. Providing this level of access will actually improve a companys targeted marketing efforts!
Giving consumers access to all of their data is not an easy one. It involves complex data integration and a number of tough business decisions. The roles of database builders and integrators, along with relationship marketing experts will be more and more in demand. Begin thinking of all of the places data is captured about a consumer, what it takes to integrate it, and how to provide consumers with access to it - No small task, get started now so that your business can continue with focused & efficient targeted marketing!
About the author
DBMarkets@aol.com
http://www.msdbm.com
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