Expose Yourself

Now that Microsoft's back in court, we'd like to book an additional charge against the software giant: petty theft. In case you didn't know, the Windows Media Player is a pickpocket. It lifts information about the DVDs you watch and the music you play, then hands off the details to a database in Redmond, Washington. Never mind the privacy issues; this information is worth a fortune. Why isn't Microsoft paying you for it?

Comcast ran a similar theft ring. But when the company got caught tracking its customers' Web surfing habits without their knowledge, a congressman and privacy groups kicked up a fuss. The company has since gone straight.

What's with these low-rent market research tactics? They're foolishly unnecessary: Surfers love to sing. Like a lonely heart at a cocktail party, American consumers will reveal more personal information than you ever wanted to know. All you have to do is provide an incentive.

Lycos understands this. When surfers register, fewer advertisements crowd their screens and existing ads get smaller. Does Lycos turn around and sell the information it collects? Certainly not. The company uses it to cater content to your interests, age, and the like.

And you return the favor. Over time, registered users generate far more revenue than unregistered riffraff.

Amazon.com also understands the power of paying for your secrets. The e-tailer continuously asks shoppers to rate various products according to their tastes. This information is plugged into a personal profile and measured against profiles of like-minded peers. What customers get in return are buying recommendations.

Hold it, you say. A sales pitch is a sales pitch. Where's the payoff?

A growing number of Amazon shoppers find the refinement and sophistication of the e-tailer's recommendations to be a perk. After all, the site's recommendations are based on the personal opinions of you and your fellow shoppers, not on overstocked inventory. Sales tool? No, it's a service. And customers are happy to have it.

Even sites that don't sell products directly will shrewdly pay you to speak your mind. Kraft Foods' Interactive Kitchen page hosts food ideas, nutrition information, and recipes, even though you can't buy the ingredients online.

Just by watching the hot buttons at its site, the company gathers valuable information. The tradeoff is sweet: You learn how to make a cheesy goombah casserole; Kraft learns to diversify its packaged cheese product line.

No company does this better than Procter & Gamble, a pioneer in market research. The company devotes upwards of 50 percent of its $150 million consumer research budget to online efforts.

Recently, P&G sponsored a print and TV ad campaign for its Crest Whitestrips tooth-bleaching kit. The ads lured consumers to the company's Web site with coupons and discounts. Almost instantly, P&G discovered that 80 percent of its buyers were women and that half were between the ages of 35 and 54. Advertising for Whitestrips was tailored accordingly. Even the product itself has undergone changes based on consumer reaction.

Gathering this data cost a fraction of what traditional focus groups would have demanded. Results were compiled faster. The anonymity of the Net guaranteed greater candor from respondents. As it turns out, the information was a gold mine. And best of all, P&G didn't have to steal it.

Wendy Taylor is the editor-in-chief of Ziff Davis Smart Business; Marty Jerome is a contributing editor. E-mail them at taylor&jerome@ziffdavis.com.

Copyright © 2002 Ziff Davis Media Inc. All Rights Reserved. Originally appearing in Ziff Davis Smart Business.