Shoppers pay more for privacy

Shoppers on the Internet are prepared to pay more for what they buy from you if your site has a clear privacy policy. According to research from Carnegie Mellon University, shoppers want to see your privacy policy plus they will pay more for goods and services from sites where such policies are available.

The study found that prices can be around 5% higher for sites with privacy policies that are clearly stated and available, compared with sites that don’t have these policies in place. In other words Internet shoppers are happy to pay for their privacy.

If you sell anything online this means your privacy policies should be obvious and clearly stated. You may also want to create a “P3P” policy, which is a web standard privacy system that can be shown by web browsers automatically – a similar scheme to the padlock icon for security.

However, for most sites a clear privacy policy is probably all you need. Don’t opt for great long screeds of legal text, instead think about the user. What they want is instant reassurance. A handful of bullet points on each sales page should suffice.

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Graham Jones
Graham Jones is an Internet Psychologist who studies the way people use the online world, in particular how people engage with businesses. He uses this knowledge to help companies improve their online connections to their customers and potential customers and offers consultancy, workshops, masterclasses and webinars. He also speaks regularly at conferences and business events. Graham is an award-winning writer and the author of 32 books, several of which are about various aspects of the Internet. For more information connect with me on Google+
Graham Jones

@grahamjones

Graham Jones is an Internet Psychologist, professional speaker and author of 32 books who helps businesses understand the online behaviour of their customers
RT @PsychToday: Social media may not be the best place to convince your friends of your political candidate’s attributes—or, conversely, th… - 1 hour ago
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