Report

September 1999

The Privacy Best Practice

Christopher Kelley 		Wired consumers worry about their online privacy. To solve the privacy problem and build customer loyalty, sites must implement the privacy best practice -- a model that gives consumers control over their personal data.
by Christopher Kelley with James McQuivey, Michael Gazala, Tell Metzger, Christine Ham

MARKET OVERVIEW
  • Two-thirds of online consumers worry about Web privacy.
  • Net users only share personal data under certain conditions.
ANALYSIS
  • Addressing privacy is about building relationships.
  • The privacy best practice gives consumers control.
ACTION
  • Merchants must flaunt their privacy policies.
  • Retailers should keep privacy seals for now.
WHAT IT MEANS
  • The FTC will stay out of retailers' way.
  • Personal data intermediaries will struggle to be relevant.
 
Figures & Data
  • Figure 1.  Privacy Concerns Are Broad And Decrease Online Participation
  • Figure 2.  Personal Information Will Be Shared -- Under The Right Conditions
  • Figure 3.  Web Retailers Must Create Direct Relationships With Customers
  • Figure 4.  The Privacy Best Practice Helps Deepen Relationships With Customers
  • Figure 5.  A Sample 'Privacy Best Practice' Customer Control Panel
   
RELATED MATERIAL 
  • Research Methodology
  • Experts Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Discrimination fears continue into cyberspace.
  • Consumers gravitate toward active personalization.
  • Beware the whimsy of the people.
  • Do you have kids at home?
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