Online marketing is much more effective if companies know a bit about the customers hitting their sites.

Companies want to be able to cross-sell or up-sell with relevant offers, for example, but that requires the right data. But the concern over theft of PII has risen to the degree that consumers are more protective of their information these days, to the detriment of marketing programs. There's a higher level of distrust, as people generally fail to see any benefits from offering personal information to marketers. Only 52 percent of respondents to a recent survey by LoyaltyOne somewhat or strongly agree that companies are using their personal data to better serve consumers.

There's a lot going on here. While people tend not to trust companies with their PII, those that do offer such information tend to be disappointed by what they get in return, in terms of discounts, product offers and the like. Companies perhaps need to figure out ways to offer more compelling fare.

Of course, none of this works if customers remain unconvinced that their information will be adequately protected. That's a hard promise to make right now, especially given than nearly one-third of respondents have been notified of compromised or stolen information in the past, according to the survey. Long-term, it's possible we could be looking at regulations designed to better protect personal data. Even that may not be enough to instill confidence.

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