Privacy Policies Critical to Online Consumer Trust

Vancouver, BC, March 1, 2001 - Canadian Internet users are willing to share personal information, but their degree of willingness is dependent on the organization in question and on how clearly the reasons for collection are communicated, according to a jointly released study by Columbus Group and Ipsos-Reid.

Contrary to popular belief, the vast majority of Canadian Internet users have shared personally identifiable information at a Web site (82%). However, there are definite reasons why Internet users are more likely to submit information at one site and not another. For example, 74% indicate the company's reputation made them feel more comfortable with providing this information, and 55% claim the stated privacy policy - a statement posted on the site that explains the company's intended use of submitted information - made them more comfortable with providing personal information. At a time when consumer trust is the single, largest barrier to e-commerce, this survey underscores the responsibility of companies to clearly state their intentions when gathering customer information through their Web sites.

"At this stage of the game, having a clearly communicated and easily understood privacy policy in place is a competitive advantage," says Chris Ferneyhough, Vice President of Technology Research at Ipsos Reid. "Firms that have recognized this are enjoying the benefit of being able to develop a better understanding of their current and potential online customers. Organizations that have not yet recognized the importance of a clear privacy policy are shooting themselves in the foot and are hindering their efforts to build strong and long-lasting online customer relationships."

The study also found that a privacy policy is the leading opportunity for organizations to build trust with Internet users that have never felt comfortable with providing personal information online. A total of 57% of users who have never submitted personal information online state that a solid online privacy policy would most likely make them reconsider sharing personal information, while 53% state that the company's reputation would also influence their decision. Interestingly, given the recent introduction of the Personal Information Protection and Electronic Documents Act (BILL C-6), only 36% of these users claimed that increased government regulation would make them more comfortable.

Columbus Group, one of Canada's leading Internet Professional Services companies, is encouraged by the findings. "For e-business to succeed, companies have to establish trusting relationships with their online customers. This survey has provided us with more evidence that online privacy concerns can be mitigated though open communication of information policies and by clearly articulating the resulting benefits to the user," says Christopher Burke, Columbus Group's Privacy Advisor. "This understanding is important to Columbus Group as we work with our clients to create personal, relevant, and valuable online experiences for their customers--ensuring that the trust is there is critical."

Among those who have shared personal information with Web sites, the reasons for doing so are varied. For example, 62% have completed site registration forms to access premium content, 57% have entered personal information for purchasing goods or services, and 55% have provided online contest entries.

However, as more Web sites are gathering information from users, the misuse of this information is becoming more apparent. The Columbus Group/Ipsos Reid survey revealed that 18% of Internet users who have shared personal information claim to have experienced a breach of their online privacy. Encouragingly, the bulk of breaches have been relatively minor: 86% say they were subscribed to unwanted e-mail marketing, and 43% state that their data was sold or transferred to a third party.

The release of this information is part of the ongoing strategic alliance between Ipsos-Reid and Columbus Group. The two companies have partnered to provide a powerful combination of Columbus Group's people-centered Internet solutions with Ipsos-Reid's custom interactive research services.

The "Canadian Inter@ctive Reid Report" is the largest, most comprehensive and authoritative source of its kind about quarterly Internet trends in Canada. The results are based on two separate data collection instruments. In the first, 1,000 web users from Ipsos-Reid's Canadian Internet Panel are surveyed online. Panelists are chosen through random telephone surveys conducted on an ongoing basis across Canada. Results are complemented by a further 1,500 interviews via telephone with Canadian adults in order to verify results of the panel, and track issues among non-Internet users. The most recent quarterly results were collected between December 27th, 2000 and January 7th, 2001.

These data are statistically weighted to reflect the population proportions of regular online users by online expertise and regional distribution. Our panelists represent approximately 12.4 million Canadian adult Internet users who are online for one hour a week or more (there are a total of 15.3 million adults who have Internet access).

With a national sample of 1,000 and 1,500 (for each component), one can say with 95% certainty that the overall results are within a maximum of 1772.5 percentage points of what they would have been had the entire population of Canada's regular online users been surveyed. The margin of error will be larger for sub-groupings of the survey population.

Established in 1979, Ipsos-Reid is Canada's leading market research and public opinion company. Its is best known for the Angus Reid Express Poll, the most widely quoted source of public opinion in the country. Founded by Dr. Angus Reid, Ipsos-Reid has conducted extensive market and social research in 80 countries and in 40 languages, and serves clients around the world through more than 300-professionals and 1,000 data collection staff in eleven offices. The company is a member of the Paris-based Ipsos Group, ranked among the top ten research companies in the world.

Columbus Group enables its clients to Get, Keep, and Grow customer relationships using the Internet. The company, with offices in Vancouver, Toronto and Seattle, provides eCRM strategy, Web interface design, application development, and integration expertise to create people-centered Internet solutions. An industry leader for six years, Columbus Group creates great online experiences for TELUS, Chase H&Q, Westcoast Energy, Kraft, Tourism Vancouver, and others. Columbus Group has founded www.people-centered.org, an online community of businesses around the world that are engaged in being people-centered through all aspects of their operations.

For more information, contact:
Bryan Mavrow, Vice President, Marketing
t: 604.801.5758
e: [email protected]
w: www.columbusgroup.com

or

Chris Ferneyhough, Vice President, Technology Research Ipsos-Reid
t: 416.324.2900
e: [email protected]
w: www.ipsos-reid.com