Improving Customer Confidence With A Privacy Policy

Improving Customer Confidence With A Privacy Policy

By Staff Writer

Every day, consumers are faced with news stories of identity theft, credit card fraud, and sold personal information. If you want your Internet customers to return, you need to set their minds at ease. You need to address their reluctance to shop online and assure them that their sensitive information is safe in your hands. In short, you need a privacy policy.

According to the Online Privacy Alliance, over two-thirds of business Web sites have a privacy policy displayed.

According to the Online Privacy Alliance, over two-thirds of business Web sites have a privacy policy displayed, with more adding them each month. A clear statement of how you handle your site visitors’ data, a privacy policy describes what steps you take to protect user privacy. Although there are no government mandates regarding online privacy (except when targeting children under 13 years old), there are definite benefits to posting a statement on your site.

A prominently placed privacy policy sends an important message to your customers. It encourages them to do business with you with a higher degree of confidence, and it encourages their trust. When you state how you manage personal information, you decrease visitors’ fears about providing it.

Elements of a Good Policy
Privacy policies are tailored to individual businesses with different customer demands. For instance, the financial consulting company will need a stricter and more defined policy than the antiques seller. Regardless, there are three key areas that should be addressed in every privacy policy.

Information: Explain what data you collect (email address, phone number, etc.) and how you use it. Be sure to include the information you automatically gather when they log on (IP address, browser type). Tell visitors whether or not you sell or share your lists and whether or not they can expect to be contacted in the future.

Security: How is customer data stored? Outline for readers your security procedures, SSL encryption, and precautions you take to make sure their information is protected.

Customer Control: Tell site visitors how they can view or change the information they give you. If you share your list, how can they avoid getting email from third parties? How can they unsubscribe from your newsletters?

Your privacy policy should be easy to read and easy to locate. Include a link to the policy on every page—in particular the ones where customers enter their personal information.

First and foremost, your privacy policy should be easy to read and easy to locate. Although this is typically a legalistic document, it isn’t necessary to bog down customers with incomprehensible wording. Keep it accessible to the layperson, both literally and figuratively. Include a link to the policy on every page—in particular the ones where customers enter their personal information.

Privacy Policy Seals
To add additional credibility to your commitment to protect customer’s privacy, you also have the option of displaying a seal from a third-party organization. Essentially, when you agree to comply with certain privacy rules, you receive a stamp of approval and can give extra proof to your site visitors that you value their privacy and take serious measures to use their information responsibly. The two main privacy seal companies are the Better Business Bureau Online (BBBOnline) and TRUSTe (Trusted Universal Standards in Electronic Transactions). TRUSTe's program costs $499 annually, and BBBOnline requires membership in the Better Business Bureau ($200 a year).

Writing Templates

If writing a policy from scratch seems daunting, you can download a template privacy statement at TRUSTe, the DMA (Direct Marketing Association), or the Better Business Bureau.

If writing a policy from scratch seems daunting, you can download a template privacy statement at TRUSTe, the DMA (Direct Marketing Association), or the Better Business Bureau. By filling in blanks or answering a brief step-by-step questionnaire, you can get a generic document to post on your site which you can modify to suit your business as it changes.

Making Your Privacy Policy Known
Privacy is a hotly debated topic among consumer advocate groups and government officials alike. A preemptive step—and a crucial marketing message to your customers—is to post a privacy policy today. Remember: Once your privacy policy is posted on your site, adhere to it closely. By doing so you’ll increase customer’s trust in you, build their loyalty, set yourself apart from the competition, and increase sales in the meantime.

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