Email Marketing Insight
Always use a statement of origination so it is clear why the recipient has received the e-mail.
The implementation of the new Electronic Communications Directive from the European Community seems likely to suggest that different forms of consent to future e-mail marketing communications will be required according to the form of relationship between the marketing organisation and the individual or the data subject. Three different forms of relationship and the likely consent requirements can be identified:
1. Individual unknown to organisation. Opt-in required. This is the situation if an e-mail list is purchased from a third-party list owner. It seems likely that only opt-in lists can be used legally, i.e. all individuals on the list must have opted in to receive marketing communications.
2. Individual is a prospect or suspect. Opt-in required. If you have acquired a lead from the web site or through other offline means, then it seems likely that e-mail communications will only be legal on an opt-in basis.
3. Individual is a customer of the organisation. Opt-out required. It is likely that if there is an established relationship starting with a sale, then e-mail marketing communications will be legal provided the customer is given the opportunity to opt out of future communications.
This situation arises since the new directive distinguishes quite clearly that opt-out will only be acceptable for customers that have previously purchased directly from the company.
To future-proof, you should collect opt-in, but also record the different acceptable forms of communications to the customer (phone, fax, direct mail, e-mail), the date and time the data was collected and the form of consent given, i.e. opt-in or opt-out. The record should even reference the form of privacy statement in force at the time of registration.
Questions for list brokers
Some list brokers state that their lists are opt-in, when they are not. If you use such a list, you may be breaking data protection laws, have an unsatisfactory response rate and receive complaints that tarnish your brand. So, with all list brokers or vendors, you should initially ask whether the list is opt-in and find out the exact form of the opt-in, what text was used and what the source was. One list vendor in the UK has a privacy statement that states that the recipient's address was collected at a conference, via a magazine subscription or direct mail. This is not sufficiently specific. Some individuals will want to know exactly where their data was collected.
If the form and source of opt-in are not known then there can be no reassurance that you are not spamming and damage to your brand will result. You should ask that it is written into the contract that the list is warranted for use in direct marketing under current data protection legislation. This will be useful if you later receive a complaint from a recipient. You are unlikely to be prosecuted under the Data Protection Act or Telecommunications Act if you have shown due diligence in checking that your supplier is using an opt-in list.
You can also check whether the list owner is on the List Warranty Register (which was originally developed for direct mail). This is a central database of list owner and list user warranties. There are four types of warranty: consumer list owner, consumer list user, business list owner and business list user. Warranties are renewed every year. By signing a warranty the signee agrees to comply with the DMA's Code of Practice and in case of a complaint to be bound by the decisions of the DMA.
CUSTOMER RELATIONSHIP MANAGEMENT
Building long-term relationships with customers has always been essential for any sustainable business. However, for many years, marketing theory and practice suggested an emphasis on a
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short-term approach concentrating on achieving transactions rather than building customer lifetime value. A shift from transactional marketing thinking to relationship marketing thinking was highlighted by Regis McKenna, who suggested a change:
from manipulation of the customer to genuine customer involvement; from telling and selling to communicating and sharing knowledge (McKenna, 1991).
This change has been facilitated by advances in technology enabling customers to be profiled in more detail and their needs assessed through market research. The Deutsche Bank example shows that even an international company with a large customer base can use this approach.
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