Personalization versus privacy – it’s an ongoing paradox in dealing with customers over the Web.

Customers expect sites to tailor content to their personal tastes and interests, yet they are suspicious of a company’s efforts to gather personal information about them. So how can you get your customers to open up?

An article by David Rubini in Design Management Journal says it comes down to this: Ask only for what you need, and when you get it, use it wisely.

• If you need a customer’s ZIP code for demographic profiling, Rubini says, don’t ask for a complete address. Ask for the minimum information, and explain why you need it.
• Once a customer gives you personal information, protect it with the utmost security. If you don’t respect the customer’s privacy, Rubini warns, they won’t trust you with their information – or their business.
• Use personal information to give customers something they want. Rubini holds up Amazon.com’s book recommendations as a good example of showing customers the value of letting you get to know them.

If people see that you’re using their information to serve them better, they’ll be more inclined to give you that precious peek into their personal side.

You can download the complete paper from the Design Management Institute for a $5 charge.