Keep Customers Happy About Data Collection

Get ready for more restrictions on the data you analyze about your customers. Opt-in systems—in which the customer needs to give explicit permission for you to collect data on their individual shopping habits—are likely to spread, replacing the opt-out systems now used in the U.S.—in which the customer needs to explicitly say they don't want the data collected. Because collection and analysis of data about your shoppers is so valuable for your profitability, keep your customers happy about data collection. Show them how your data analysis helps you target advertising to their particular interests, saving them from spam.
     One impetus for more government regulation is a recently released survey research study titled "Americans Reject Tailored Advertising." The researchers are based at University of Pennsylvania and UC Berkeley. My opinion after looking at the study report is that the methodology was excellent and the results are more trustworthy than prior survey research sponsored by groups advocating for online advertising.
     The report recommends steps you can take. Here's a more complete list which was proposed in the past by an expert at SUNY, Potsdam:

• Inform customers what data you collect on them and how you use and protect that data.
• Let customers have a say about what information you collect on them and who you give it to. Make it easy to opt out, but also make your case for your shoppers opting in.
• Help customers correct any errors in the personal information you maintain on them.
• Maintain secure data storage.
• Enforce your information practices. Your customers are serious about this. In the survey, 70% of the representative sample of Americans said a business should be fined a large amount if they violate privacy, and 35% said the executives responsible should go to jail.