Privacy Policies Promote Purchases

Consequently, having a clear, straightforward privacy statement on one's web site is undoubtedly becoming an essential component of continued online commerce success. A user's proclivity to buy online increases dramatically when a site describes what information is being collected, how it is collected, and how that information is being used.

Here are a few guidelines to follow when developing your privacy policy. By simply looking at the "what," "why," "who," "where," "when," and "how," you can start defining the necessary elements of an effective privacy pledge. For instance, here are some of the questions that your privacy statement should answer (keep in mind that this is an example and not 'the' example):

1) WHAT information is being collected

• Do you gather IP addresses, browser tags, and user origins?
• Do you collect demographic data (e.g., age, income level, etc)?
• And do you retrieve contact information (such as addresses)?

(If so, what is being collected without the user's consent?)

2) WHY the information is being collected

• Do you need the data to administer your site?
• Do you use it to customize the user's experience?
• Do you keep it in order to communicate with the user?

(If so, how exactly is it being, and will it be, used?)

3) WHEN that information is being collected

• Do you collect the information through online forms?
• Do you use cookies or any other persistent identifiers?
• And do you gather the data in specific locations? (If so, where specifically is the data retrieved?)

4) WHO will be using that information

• Will you sell, lease, or share the information gathered?
• Will partners, affiliates, or suppliers have access to it?
• And do you supplement it with data from third parties? (If so, who precisely is sharing or will share the information?)

5) WHERE the information is actually stored

• Is the information kept onsite or on any other server?
• Is it sent by e-mail or maintained on a certain database?
• And are there any security measures in place to protect it?

(If so, for how long is the information kept?)

6) HOW to remove or modify that information

• Can one manage, modify, or update one's information?
• Can one opt-out of any future communications or services?
• And does one have a say in how that information is used?

For added convenience, you can have it done for you with a neat wizard supplied by TRUSTe. And if you would like to use specific tools to enhance your site's privacy practices, The Privacy Page offers many online tools, such as web, e-mail, telnet, and data encryption resources.

Ultimately, your goal as an Internet marketer is to increase your online sales. And the way to do so is to ease your prospect's buying experience. By catering to their privacy needs, you will likely increase not only your sales but your repeat and referral sales as well.

In short, make a privacy pledge and they will take the purchasing plunge.