privacy impacts purchasing

Privacy Impacts Purchasing: Top Ways Companies Can Use Online Testing and Privacy Seals to Improve Privacy Practices and Increase Sales: 

Privacy Impacts Purchasing: Top Ways Companies Can Use Online Testing and Privacy Seals to Improve Privacy Practices and Increase Sales Carolyn Hodge, Marketing Director, TRUSTe Jamie Roche, President, Offermatica Tess Koleczek, Chief Privacy Officer, E-LOAN

Agenda: 

Agenda TRUSTe – ROI of Privacy: Earning Trust, Building Business Consumer attitude and research around privacy Privacy trust builders & eroders Offermatica – Online Privacy Practices: Stop Guessing and Start Testing Explanation of testing & how it works Specific client cases regarding security and privacy seals E-LOAN – Privacy: What’s it worth? How to mobilize testing internally How to use ROI testing to build privacy budgets and business relevance Q&A

ROI OF PRIVACYEARNING TRUST, BUILDING BUSINESS: 

ROI OF PRIVACY EARNING TRUST, BUILDING BUSINESS Carolyn Hodge Director of Marketing

ROI OF PRIVACY: 

ROI OF PRIVACY Agenda Consumer privacy attitudes survey ROI case studies 2007 Most Trusted Companies for Privacy What you can do to influence customer attitudes and behavior.

CONFUSION ON PRIVACY IS WIDESPREAD: 

CONFUSION ON PRIVACY IS WIDESPREAD A majority of consumers are confused about the role of a Web site’s privacy statement. Fifty-three percent of survey respondents believe that a posted privacy statement means the organization “will never sell or give any of my personal information to anyone else.”

PROTECTIVE ACTIONS NOT PURSUED : 

PROTECTIVE ACTIONS NOT PURSUED 45 percent have used more than one email address so that one is reserved solely for their personal communication 43 percent have read privacy policies 33 percent have provided email addresses and information that would not identify them personally 33 percent have changed passwords on a regular basis 26 percent have looked for third-party seals or certification

TRUST IMPACTS BEHAVIOR: 

TRUST IMPACTS BEHAVIOR The survey shows that consumer trust online impacts behavior. In the past six months: 71 percent of respondents have decided against registering or making a purchase online because those actions required them to provide information that they did not want to divulge. 41 percent said that, in the past six months, they have provided inaccurate information to Web sites that required personal information which respondents did not want to share.

PRIVACY TRUST ERODERS: 

PRIVACY TRUST ERODERS

PRIVACY TRUST BUILDERS: 

PRIVACY TRUST BUILDERS

LEVERS TO BUILD TRUST: 

LEVERS TO BUILD TRUST Can consumers easily find notice at the time they need? Easy to navigate and read the notice? Provide easy access to account information and ability to change it? Can you easily delete or deactivate an account? What are cookie practices and how are they disclosed? Choice for sharing in and out of network? Third party seals present with redress mechanism? Have the sites had any breaches or public incidents in past 12 months? What is governance structure for privacy? Security for transactions and sensitive information?

USERS WILLING TO PAY MORE FOR PRIVACY: 

USERS WILLING TO PAY MORE FOR PRIVACY CMU Experimental Study on Privacy Information People were willing to pay about 60 cents more to protect their privacy for each $15 item purchased. Low privacy premium 3-5%, High privacy premium 7-10%

VISIBLE & TANGIBLE ASSURANCE PRODUCES RESULTS: 

VISIBLE & TANGIBLE ASSURANCE PRODUCES RESULTS $20,000/week in additional revenue CourseAdvisor.com

Slide13: 

Online Privacy Practices: Stop Guessing and Start Testing Jamie Roche, President, Offermatica

What is a Test, Anyway?“A/B…N” and “Multivariate”: 

Tests allow you to measure the effectiveness of websites, landing pages, emails, ads, etc. and/or different elements thereof. Two popular types of tests are: A/B…N Test: Test “Recipe A” vs. “Recipe B” vs. “Recipe C” and so on Multivariate Test: Test 3 or more different elements of an online marketing campaign. What is a Test, Anyway? “A/B…N” and “Multivariate”

Ways to Test on Your Web Site: 

Ways to Test on Your Web Site A region on your web page, email, or ad where you can test, target, and optimize content for visitors/viewers. slot slot slot Offers An offer is content that is displayed in a slot (image, html, flash, an entire page or even dynamic content) Slots offer Z offer Y slot

Case Study #1 - A/B/C/D Landing Page Teston Stamps.com: 

Case Study #1 - A/B/C/D Landing Page Test on Stamps.com A B C D

A/B/C/D landing page test results - Stamps.com: 

A/B/C/D landing page test results - Stamps.com After running the campaign for 9 days… Total lift of the winning landing page (D) was 13% All segments had the same winning alternative In this case our success metric was just registrations (subscription business model) When testing in our consumer store, we use conversion to purchase, average order value and revenue per visit. B A C D

Slide18: 

Case Study #2 - Multivariate Testing on Home Page of Audible.com

Slide19: 

Different Home Page Slots - Audible.com

Slide20: 

Audible.com Home Page Elements

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Users Received 1 of 8 Recipes

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Results Best Recipe Included privacy seal Had 24% Increase in Engagement

Slide23: 

The Winning Home Page Layout Control Winner

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Privacy seal had a 7% influence on engagement Key Results

Multivariate TestingGuidelines: 

Multivariate Testing Guidelines Select the elements you believe will have the strongest impact on the results. You must have at least three elements to test. It is recommended that elements be independent of each other. (For example, do not test your layout and content in the same test.) Its recommended that each element must have the same number of alternatives. For each element, it is recommended to have alternatives that are significantly different from each other.

Testing Best Practices: 

Testing Best Practices Choose your success metric during campaign design. Let campaigns run for a minimum of one week (two weeks is preferable). If possible, always filter testing results by traffic source. Exclude extreme data (i.e. unusually large orders) when evaluating revenue measures. Consider statistical confidence: What is the likelihood that these results will be consistently reproduced?

Slide27: 

Tess Koleczek Chief Privacy Officer First Draft of Section 1.0 [7/13/04] Privacy – What’s It Worth?

ROI – A New Privacy Concept: 

ROI – A New Privacy Concept Why measure ROI for privacy? Privacy = Trust Trust gets you three things: Customer acquisition Retention throughout the transaction Repeat business Those three things translate to revenue. Revenue gets you noticed within your organization. Seat at the table gives consumer advocacy a voice in the business.

Game Plan: Measuring ROI: 

Game Plan: Measuring ROI Getting Started: Six Steps to Demonstrating ROI: Step 1: Obvious – Review your current situation Step 2: What is your role in the business? Step 3: Get down to business Step 4: Test your theory Step 5: Build some momentum Step 6: Make it happen

Step 1: Look at the Obvious: 

Step 1: Look at the Obvious Your Privacy Policy Is your policy pro-consumer? Do customers have an opportunity to view it or even know it exists? Is the policy readable, aka, would my mom get it? What are you telling people up front? Or do they have to scroll down the page in order to find something comforting?

Step 2: How Does Your Company View YOU?: 

Step 2: How Does Your Company View YOU? Privacy Team Are you a participant in key operations & development meetings? (where’s your seat at the table?) If not, at what stage do you become involved? (driver or rider?) Can you discuss more than just regulatory requirements and privacy? (do you speak the business language?) Are you a business person or a privacy cop? Demonstrate that you understand the goals of the business, not just your department.

Step 3: Dig A Little Deeper: 

Step 3: Dig A Little Deeper Location of links to privacy policy Certifications or seals – are they visible? Pages where you are “selling” your brand Points of collection Type of message your company projects Value? Products? Trust?

Slide33: 

Step 4:Testing Your Trust Theory - A/B Testing Images provided by Offermatica

Examples of Adding Value: 

Examples of Adding Value Work with Public Relations & Marketing Pick endorsements or certifications that add value Find appropriate locations for display

Financial Benefits : 

Financial Benefits Measuring success TRUSTe logo alone provided a 3-5% bump in application conversions Newer websites: TRUSTe logo plus other endorsements provided a 20% increase in conversion rates! Calculate the benefits: Every “converted” application = $X 2000 apps per day = 100 more conversions = $X,000

Step 5: Prepare to be Heard: 

Step 5: Prepare to be Heard Make a map of the current placement of privacy info - What is the message being projected? Identify locations that would benefit from a bump in consumer trust & strategically locate info to derive value. Is there “real estate” available for better messaging? Offer various combinations of “enhancements” Get the support of business owners – they want to succeed, too. Estimate the financial gain for the company TRUSTe logo alone provided a 3-5% bump Request testing to prove your point (be persistent!)

Step 6: Make It Happen: 

Step 6: Make It Happen Sell ideas and benefits to business owners – get their support - Operations - Marketing - Customer Service - Compliance - Legal Escalate – work the decision-making food chain Emphasize the bottom line: TRUST = $$

Consumer Advocacy is Good Business: 

Consumer Advocacy is Good Business Business reality: Revenue drives most business decisions Adjust your privacy program to contribute a financial benefit It takes time & support, so be patient Use tools already available: TRUSTe seal Other certifications (Verisign, ESRB, etc.) Endorsements (“as seen in WSJ, Forbes, etc.) Document successes and let executives know your value!

Contact Information: 

Contact Information Carolyn Hodge Director of Marketing TRUSTe chodge@truste.org Jamie Roche President Offermatica jroche@ottodigital.com Tess Koleczek Chief Privacy Officer E-LOAN, Inc. tessk@eloan.com