How to use privacy seals to improve privacy practices and increase sales

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

Carolyn Hodge, Marketing Director, TRUSTeJamie Roche, President, Offermatica

Tess Koleczek, Chief Privacy Officer, E-LOAN

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Agenda

TRUSTe – ROI of Privacy: Earning Trust, Building BusinessConsumer attitude and research around privacy Privacy trust builders & eroders

Offermatica – Online Privacy Practices: Stop Guessing and Start TestingExplanation of testing & how it worksSpecific client cases regarding security and privacy seals

E-LOAN – Privacy: What’s it worth? How to mobilize testing internallyHow to use ROI testing to build privacy budgets and business relevance

Q&A

Proprietary and Confidential to TRUSTe3

ROI OF PRIVACY

EARNING TRUST, BUILDING BUSINESS

Carolyn HodgeDirector of Marketing

Proprietary and Confidential to TRUSTe 4

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

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

• 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

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 BUILDERS


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

• 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

$20,000/week in additional revenue

CourseAdvisor.com

Online Privacy Practices:Stop Guessing and Start Testing

Jamie Roche, President, Offermatica

Copyright 2006, Offermatica Corp. All rights reserved. | Proprietary and Confidential to Offermatica Corp. 14

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

• 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 Zoffer Y

slot


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

A B

C D


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 alternativeIn 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.

BA

CD


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


Different Home Page Slots - Audible.com

Offer

Form

Trust Logo

Search Bar

Main Image

Product Ads

Testimonials


Audible.com Home Page Elements

Main Image

Offer

Form

Trust Logo

Search Bar

Testimonials

Product Ads


Users Received 1 of 8 Recipes


Results

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


The Winning Home Page LayoutControl Winner


Privacy seal had a 7% influence on engagement

Element Winning Alternative Influence on Engagement

Main Image Alternative 2 --

Offer Free AudioBook Download (2)

61%

Form/No Form Form (1) 11%

Trust Trust Logos 7%

Search/No Search No Search --

Book Banner Non Clickable --

Testimonials Alternative 2 4%

Key Results


Multivariate TestingGuidelines

• 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

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?

Proprietary & Confidential – E-LOAN, Inc. ©2005

Tess KoleczekChief Privacy Officer

First Draft of Section 1.0 [7/13/04]

Privacy – What’s It Worth?

28 Proprietary & Confidential – E-LOAN, Inc. ©2005

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

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

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?

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

• 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?


Step 4:Testing Your Trust Theory - A/B Testing

Images provided by Offermatica


Examples of Adding Value

• Work with Public Relations & Marketing

• Pick endorsements or certifications that add value

• Find appropriate locations for display

https://www.eloan.com/s/show/secureserverinfo?sid=XNDQVG9RCYRf6kPVUeOqUOT2JlE&user=&mcode=

http://biz.yahoo.com/fo/070223/c100d49a632ce8d6f0a758f2dc190126.html

http://www.bankrate.com/brm/news/investing/20061006a1.asp

http://www.msnbc.msn.com/id/13990764/site/newsweek/


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

• 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

• 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

• 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!

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Contact Information

Carolyn HodgeDirector of [email protected]

Jamie [email protected]

Tess KoleczekChief Privacy OfficerE-LOAN, [email protected]

mailto:[email protected]

