Do not outsource your
online marketing if you want to attract and keep customers.
That is the conclusion of market researcher
Ponemon Institute, which
surveyed 900 British IT and marketing professionals on whether
their online marketing activities breached customers' privacy.
Ponemon, on behalf of internet security firm
Strongmail,
found two-thirds of firms had suffered data breaches, even though
three-quarters believed their organisations complied with
privacy laws and regulations. Fewer than one in five would tell
the customers concerned if their information was disclosed.
Half of those who reported breaches said the breach was due to
the outsourcing of personal information to third-party marketing
organisations. Marketers said these breaches had cost the firm new
and existing customers.
More than seven in 10 firms understood that personal data may
not be shared with third parties.
Despite this, data protection professionals said they would
share information on gender (73%), home address (66%), name (65%),
cellular phone (53%), e-mail address (52%), home telephone (46%)
and marital status (46%), Ponemon found.
Marketers are most likely to share gender (87%), name (86%),
home address (85%), e-mail address (81%), marital status (80%) and
home telephone (73%), it said.
But only 4% of data protection professionals and 3% of marketers
would share individuals' national ID. Both groups would not share
job performance data, movie rental history and biometrics (voice,
fingerprint).
Both groups said e-mail (75%) and internet marketing channels
(70%) threatened consumers' privacy and personal data. Nine of 10
marketers believe that privacy requirements such as opt-in and
opt-out choices hinder their marketing practices, but only 13% of
data protection professionals felt this to be true.
Most firms outsource their online marketing campaigns to
third-parties to save costs, and to achieve better quality of
service and greater efficiency. Protecting customer data is a main
reason why some firms choose not to outsource, Ponemon said.
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