Mobile Privacy Experts: Consumer Trust Vital

Gary Schwartz, president and CEO of Impact Mobile and chair of the North American Chapter of the Mobile Entertainment Forum, tells Street Fight that building trust should be the core of a retailer’s mobile and online strategy. “The key to engaging with the consumer in a trusted relationship in a retail environment is you don’t want to engage with people who don’t want to engage with you,” says Schwartz. “The outreach should be focused on loyalists with a retailer’s brand. It’s about your loyalists putting up their hand and saying ‘hey I want to talk to you because I love your product.’”

“You need to make a call to action on all your touch points, and say if you love my product opt in. Once you have that, you have to let them opt out at any time,” Schwartz adds. He believes the strategy can be outrageously successful: “If you’re on target, if you are talking to them and they love your product, they will stay with you. It will attract 10x over your email channel.”

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Building trust requires developers and businesses to implement a strategy that give consumers a better idea of what information is collected from them, and what choices they have to control it. Regulators have encouraged developers and businesses to engage in “privacy by design,” that is, incorporate transparency and protections for consumers on their information as products are built and launched.

Regulators have become increasingly aggressive in addressing what they perceive as abuses in the use of consumer information from mobile devices. Already, Apple, Google, Microsoft, Hewlett-Packard and Research in Motion and other major application stores have agreed with the California Attorney General to require all developers to provide privacy policies with their applications, include a process to display such policies in their stores, and report developers that are not complying. The California Attorney General’s office warned it will take enforcement action if the privacy policy process is not in place within six months.