The importance of the privacy description
Wakoopa’s software is quite different from the traditional panel research. That’s why introducing the tracker sometimes seems hard. We get a lot of questions from people wondering what the best way is to do so. At Wakoopa we were wondering the same; what would be the best approach for the highest conversion? That’s why we have conducted a research last year to find out the best practice for our tracker. In this blog post we want to show you the outline of it.
In preparation for the research we read almost every relevant study conducted on invitations and incentives in traditional panel research, plus quite some studies about online privacy. After examining the current invitations and conversions of the tracker, it appeared that there was a relationship between the height of the incentive and the extensiveness of the privacy description. We decided to find out more about this relation in an a/b test.
Before we continue we must explain that there are certain factors we can never influence, like the history of the panel. When the tracker is introduced the panel is already conditioned by previous rewards and questionnaires. This means that for some panels the conversion will be structurally lower (or higher) than for others. Next to this there is also the positive effect of reputation. People are more likely to disclose privacy sensitive information when they trust the concerning company. This is partly the reason why some of the conversions deviate substantially from the average.
Privacy and incentive
The a-b testing revealed that the privacy description is actually the most important part of the invitation. This has such a degree of importance, that when the privacy description is not good enough, heightening the incentive will have no significant effect. A good privacy description can be based on taking away the four cost concerns people have, based on the social exchange theory. These are: collection, unauthorised secondary use, improper access and errors. These concerns should be clearly addressed in the privacy statement, for example by telling the panellists where there information goes to and what exactly is collected. An example invite has been added to our knowledge base.
Picture by Matt Niemi on Flickr.com
We didn’t test the different forms of incentives, but our research did show that increasing the incentive has a significant effect on the conversion. We heightened the incentive with a factor ten from €0,50 to €5,00, which increased the overall conversion with 50%, to 11.9%. Concerning the form of the incentive, scientific studies in traditional panel research show that monetary incentives are more effective than non-monetary. Next to this, from the conversions of our tracker it appears that a periodic incentive has a positive effect on the dropout rate. A good incentive would for example be an incentive after installation, combined with a monthly reward.
So to conclude all this, our research showed that it is important to pay close attention to the privacy description you send out with the tracker. A higher incentive will work, however only when the privacy description is extensive enough. For the dropout rate it is advisable to use a periodic incentive. If you want to read the best practice or see the example invite, you can find them in our knowledge base. We hope this will help you with the introduction of our tracker and of course if you have any more questions after reading this, don’t hesitate to contact us!
- Marilou de Haan, Product Manager