Your Privacy Policy: Can it Improve Your Conversion Rates? You Bet!
- Date: 2008-09-21 - Word Count: 599
Share This!
I've always been a stickler for advising my clients to comply with applicable laws regarding the posting, maintenance, and amendment of their privacy policies and related regulations regarding data security. The reason... because there's substantial exposure to liability if you don't.Recently, however, I've been advising clients to do these things for another reason -- to improve their conversion rates. That's right!I'll let you in on a little secret that I've learned from some of the big players on the Web... you might be surprised to learn that they believe their privacy policies are a significant factor in improving their conversion rates.How can this be?A Little HistoryWay back in the 2000-01 time frame, trite little phrases like "we respect your privacy" were the norm. The Federal Trade Commission (FTC) had provided guidelines for privacy policies, but there was no federal statute mandating that websites post a privacy policy.Things really began to change in 2003 when California enacted the California Online Privacy Protection Act of 2003 (OPPA) which became effective on July 1, 2004. OPPA is the first state law in the nation to require owners of commercial websites or online services to post a privacy policy.Although OPPA is only a California state law, it has essentially become a de facto federal law. This is because OPPA's reach extends beyond California's borders to require any person or company in the United States (and conceivably the world) that operates a website that collects personally identifiable information from California consumers to post a conspicuous privacy policy on its webite that makes the required disclosures.After OPPA, the collection of personally identifiable information from a California resident triggers the application of its privacy policy regulations. So, if you collect only an email address of a website visitor from California, OPPA applies... and you enter into a realm of of significant regulation and exposure to liability.Post-OPPA Privacy PoliciesPrior to OPPA, most online customers trusted and believed in the typical "we respect your privacy"-type statements. Affer OPPA, not any more!The effect of OPPA was widespread and fairly uniform. Online ecommerce companies either modified their privacy policies to comply with OPPA, or they jumped on the OPPA bandwagon and posted a new OPPA-compliant privacy policy.These OPPA-compliant policies are fairly easy to identify because they require you to describe:* how you collect information (for passive information, describe how you use certain methods as cookies, Internet tags or web beacons, and navigational data collection);* the categories of information you collect (for example, for personal information - email address, name, physical address, etc. and for passive information - a detailed description of the categories of information collected through such methods as cookies, Internet tags or web beacons, and navigational data collection);* how you use the information;* how you share the information and for what purposes you share; and* how users may modify and update their personal information.ConclusionSince OPPA-compliant privacy policies are easy to spot, knowledgeable online shoppers can quickly determine if a website is OPPA-compliant. And If your privacy policy doesn't measure up, knowledgeable customers may not have the requisite level of trust to convert -- especially if you're a smaller player on the Web and not a household name.Think about it... marketers tell you that little things count in terms of building the level of trust and credibility that fosters higher conversions. Things like:* posting security certifications,* posting relevant affiliations,* posting testimonials, and* offering a money-back guarantee.I believe that posting a privacy policy that is clearly OPPA-compliant, is at least as important in terms of building trust and credibility as those items listed above. And some of the big players on the Web agree.
Related Tags: legal contracts, contract forms, chip cooper, online contract drafting service, sample contract agreements, contract drafting software, privacy policy generator, sample privacy policy, privacy policy form, legal forms software, examples privacy policy, saas co
Chip Cooper is a leading intellectual property, software, and Internet attorney who's advised software and online businesses nationwide for Chip's 25+ years. Visit Chip's http://www.digicontracts.com site and download his FREE newsletter and Special Reports: "Determine Which Legal Documents Your Website Really Needs (With Sample Agreements)", "Draft Your Own Privacy Policy", and "Write Your Own Website Marketing Copy -- Legally".
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Using Keywords Effectively For an SEO Campaign
Keyword research is one of the most crucial parts of an SEO campaign. If you end up choosing the wro - Search Engine Optimization Copywriting Tips
SEO copywriting is not as technical as it sounds but is different from traditional copywriting for t - 3 Tips to Make Money Using Videos
For the last five years video has been a real success in the internet. Now you can find video in alm - Is Social Media Networking Your Next Strategy For Your Online Marketing?
When you try to work on online promotion and online marketing, social media especially social media - Submitting a URL of Your Website
People who make a website usually do research on how to improve not only the quality of their websit - 5 Bad Habits of Article Marketing
There are many ways to advertise your company but having a highly ranked website is the best. Most p - Facts About SEO Services Company
SEO services companies are becoming very popular in the internet marketing world but there are some - 4 Ways Search Engine Optimization Can Be So Powerful
Whether you are an affiliate marketer, small businessman or a large organization, your first step wh - A List of 3 Options For Internet Business
The trend of making money through online business has become trendy now a day. People are shifting t - Getting the Best Affiliate Products For Your Site
Making money online was never so difficult before. There are numerous ways through which you can mak
Most viewed articles in this category:
- The Revolutionized Ebay Etailsolution Software
With the help of eBay, the auction business has received a new meaning. With the help of the many eB - Internet Millions - by Ryan Orrell - Honest Review
REVIEW: "Internet Millions", by Ryan Orrell, is a refreshing new kind of internet marketing e-bo - A Google Adsense Addiction
54% of all Google Adsense publishers admit addiction to click income. A recent online study conducte - Lead Generation for Top Residual Income
At the heart of any good residual income business is a person who knows how to generate leads. Lead - Make Money With Information Ebook Products: The Other End
I don't like thinking of myself as the kind of person that has made it rich on the internet, but in - Repeat Business Equals a Residual Income Stream
Residual income comes from other people reacting to a single action by the business owner. What bet - The NFL & United Way
There are many ways that NFL players help with the United Way. First of all, they donate a lot of th - Seo - Making Money Writing Seo Reviews
If you are a reviewer or critic you are likely to find work writing reviews of products and services - Understanding Perfume Types
Understanding the various varieties of perfume can help to cut through the difficulty in selecting a - Ecommerce Basics: Three Things To Avoid
When you decide to put your ecommerce website together there are a few mistakes that are easy to mak