Model Management: Flying in the face of fear

A survey by the Accenture Institute for Strategic Change, part of the consulting group, has found that 95 per cent of US Internet users express at least some concern over privacy issues. But, say consultants Paul Nunes and Ajit Kambil, who carried out the survey, "like the fear of flying, this fear does not stop them from participating in online activities".

While consumers are reluctant to provide information (such as address, phone number, income, or credit card number) many more admit to having provided this information at some point to a web site. Overall, people who spend more time online are somewhat more willing to provide information.

Unsurprisingly, the level of concern varies according to the type of information. For example, users are less willing to hand over medical and financial information than personal demographic information or information about online behaviour.

According to the survey, those who report "a little to no concern" with Internet privacy are much less willing to provide information online than those who are "somewhat concerned". Though this finding may seem contradictory, the survey's authors suggest it may indicate that those who take care to protect their information tend to worry less about its misuse. So users who appear unconcerned about privacy should not be viewed as being more willing to provide information than other respondents.

Online users are also unwilling to trade information - or only at a very high price. According to the survey, this reluctance to trade information increases with the sensitivity of the information. The only offer that significantly boosts willingness to provide information is a statement of privacy protecting the use of the information. Though cash payments are attractive to some, users want substantial amounts of money for their information - more than $40 for the vast majority of those willing to sell.

The report suggests a number of ways online companies can overcome these concerns:

- Provide a clear privacy policy statement and ensure the policy is rigorously followed.

- Carefully target information requests - users should be segmented by their online experience, since each segment responds differently to providing information.

- Ask more probing questions - graciously accept 'no' for an answer but do not be afraid to ask those questions that will help better serve the customer.

- Be patient. Users are more comfortable revealing information gradually; don't ask for a long resume at the door, and don't expect users to reveal everything about themselves for a discount coupon.

They conclude that "privacy remains a deeply personal issue and should be respected as such. Customer intimacy, evidently, is bought not with coupons but with respect and trust".