Data Collection
November 2, 2008
For merchants, it is important to remember that you only need certain, specific information from the user to identify and authorize the transaction. For ordinary transactions, you only need the customer’s name, credit card number, contact information and address for verification purposes. A transaction can be completed when you are provided with all these information.
Some merchants tend to make the mistake of going overboard by asking for the customer’s social security or driver’s license number in order to be 101% certain that the order is authorized and legitimate. Going overkill on your data collection practices can lead to detrimental effects to your business. Why, you ask? The occurrence and increasing rates of online identity theft online has led to paranoia on the part of most customers. Fraudsters use numerous techniques for obtaining user information online so that they can use them for illegal transactions. As a result, online users are now hesitant about revealing their credit card numbers out of fear that someone else might obtain it and use it for unauthorized transactions.
Asking too much information then would cause your customers to get suspicious about your website. If they are uncomfortable with the questions and information you ask, they might not proceed with the purchase even if they highly desire your product offerings.
On the other hand, it is often common for merchants to try to get specific information about their customers for marketing purposes. It is common to ask about the customer’s lifestyle, hobbies, interests and annual income. These kinds of information can be used so you can target the customer for future marketing strategies. These questions are understandable, but make sure that you do not ask for more than what customers are willing to reveal.
When asking for information like these that is not necessarily needed for the transaction, always make sure that you make it clear as to what you need it for and what benefits they can get by providing the said information. Make sure you convince them that the information they give will not be used for purposes that will not be beneficial for them.
It is also very important to have a company privacy policy and have it posted somewhere accessible in your website. You can advise your customers to visit your privacy policy page before ordering, as this builds customer confidence.
Also, many online businesses require customer membership before purchasing the products and services available. Signing up to become a member of the site will require customers to come up with a username and password. A password retrieval method is usually employed just in case the customer forgets his or her password. When choosing a password retrieval method, make sure that you provide one that does not ask for very vital information that would cause hesitation on the part of your customer.
In any online business, customer trust is a valuable asset. You must win this trust to ensure success in your venture. However, getting customer trust entails customer respect, especially on matters concerning privacy. Thus, make sure that you treat customer privacy with utmost care by asking just enough information to get your transaction going. Customers will surely thank you for it.