10-07-2006, 09:35 AM
Quote: It is a fact that privacy is one of Americans' top concerns. In the early Internet years, privacy advocates pointed to polls and survey data to argue that privacy concerns would slow the growth of e-commerce. Despite these gloomy predictions, e-commerce has thrived.
However, the issue of collecting and using personally identifiable information remains at the forefront of many legislative discussions about online and multi-channel selling. The results of a recent study suggest that multi-channel retailers should act now to build customer trust when collecting and using personally identifiable information, or they may struggle as their ability to niche market and price discriminate is restricted through new privacy legislation...
As e-commerce grows and companies have less direct personal interaction with their customers, developing customer trust will solidify its position as the most important factor in building a profitable retail business. For multi-channel retailers who shift their emphasis during the next five years toward doing more business with existing customers, building customer trust when collecting and using personally identifiable information will give them the tools to maximize sales and profitability...
full article: http://www.internetretailer.com/article.asp?id=20036