Permission Marketing

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Permission Marketing
9
chapter
Slide 1 of 23
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Youve got mail!
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Learning Objectives

• To understand the basics of permission marketing.
• To learn about the new insights it offers.
• To study the differences between permission
  marketing and other forms of direct marketing.
• To understand how to create, implement, and
  manage a permission marketing program.

9
chapter
Slide 2 of 23
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Introduction

• What is permission marketing?

• Permission marketing envisions every customer
  shaping the targeting behavior of marketers.
• Consumers empower a marketer to send them
  promotional messages in certain interest
  categories.
• The marketer then matches anticipated,
  personal, and relevant advertising messages with
  the interests of consumers.

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Insights Offered by Permission Marketing

• Cocreation and consumer control

Cocreationpermission marketing envisions
marketers and consumers as partners in creating a
marketing mix.
Consumer controlA key element of permission
marketing is consumer control. A firm cannot
send a message to a consumer without their
permission.
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Permission versus Database Marketing
What are the key differences?

• Traditional databases rarely involve consumer
  consent.
• Permission marketing programs using e-mail are
  much cheaperthe content creation and message
  delivery costs are both lower.
• Permission marketing occurs much faster due to
  the use of e-mail.

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E-mail is Synonymous with Permission Marketing
The use of e-mail introduces three capabilities

• Interactivitymeans two-way, rather than one-way
  communication.
• Rapiditymeans that a message can travel swiftly
  from marketer to consumer, providing quick
  feedback.
• Reache-mail provides good reach since a large
  proportion of the population has an e-mail
  address.

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E-mail is Synonymous with Permission Marketing
(continued)
Figure 9.1 Media Buyers Perception of Most
Responsive Marketing Method
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Different Types of Permission
What are opt-out, opt-in, and double or confirmed
opt-in?

• Opt-Out--refers to the situation where a marketer
  sends an unsolicited e-mail and then provides
  individuals an option of not receiving future
  messages.
• Opt-In--requires the consumer to tell the
  corporation explicitly that it has permission to
  send messages.

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Different Types of Permission (continued)
What are opt-out, opt-in, and double or confirmed
opt-in? (continued)
3. Double or Confirmed Opt-Inwhen building
e-mail lists marketers must send a confirmation
e-mail to all individuals who have opted in to
ensure that the consumer is indeed interested.
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Different Types of Permission (continued)
Four business models can be used to accomplish
opt-in

• Direct relationship maintenanceconsumers sign on
  for sales alerts in order to receive e-mail when
  specials are offered.
• Permission partnershipthe consumer provides a
  portal or media site with permission to send him
  or her promotional offers.

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Different Types of Permission (continued)
Four business models can be used to accomplish
opt-in (continued)

• Ad marketconsumer provides detailed information
  about his or her preferences and interests to an
  infomediary, which then uses this information to
  identify advertisers.
• Permission pool--different consumers provide
  different firms with permission to send them
  promotional offers.

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Permission Marketing for Existing Customer
Relationships
How does a firm determine whether or not it has
permission to send promotional messages to
existing consumers?

• Determine the customers expectations.
• Determine the level of relationship with the
  customer.
• Recall what the customer was told when the
  database was built.

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Permission Marketing for Existing Customer
Relationships (continued)
How does a firm determine whether or not it has
permission to send promotional messages to
existing consumers? (continued)

• Determine if the customer feels that the company
  plays a role in his or her life.
• Determine the level of permission the customer
  has given the company.

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Permission Marketing for Existing Customer
Relationships (continued)
Table 9.3 provides a guide for managers to use to
determine the level of permission.
Table 9.3 Judging the Level of Permission with
Existing Customers
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Permission Marketing for Existing Customer
Relationships (continued)
Table 9.3 Judging the Level of Permission with
Existing Customers (continued)
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Permission Marketing Best Practices
Oxmans advice for building an e-mail list

• Explain in simple English, and in plain view, the
  complete intended use of the e-mail address.
• Avoid using a must-fill field for the e-mail
  address.
• Always send a confirmation auto-reply immediately
  following registration.
• Ask only critical targeting questions, minimizing
  the online collection of basic demographic data.

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Permission Marketing Best Practices (continued)
Some problems with permission marketing exist

• Consumers are typically asked for their
  permission when they initially register, and then
  never asked to revisit their preferences.
• Customers give their permission once, and are
  thereafter repeatedly targeted with marketing
  messages.

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Permission Marketing Best Practices (continued)
Some problems with permission marketing exist
(continued)
3. Consumers are frequently asked to opt-in to
categories that are too broad. 4. Permission
marketing places demands on consumers.
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Permission Marketing Best Practices (continued)
The following elements must be included in the
creation of every permission marketing campaign

• Explicit permission seeking process
• Verification process
• Recognition of relationship

• Access to personal information
• Communication control
• Frictionless exit ability

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Measuring Consumer Interest in a Permission
Marketing Program
Consumers must be engaged and participate
wholeheartedly for a successful program. Key
metrics to help ensure this include

• Opt-out ratethe proportion of your database that
  has opted out of your program.
• Virtual opt-out ratethe proportion of your
  database that has not responded to any offer you
  have sent out during a six-month period.

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Measuring Consumer Interest in a Permission
Marketing Program (continued)
Key metrics (continued)
3. Zero communication ratethe proportion of
your database that has not communicated with you
in any way over the last six months. 4. Profile
updation ratethe proportion of the database that
has updated its profile in the last six months.
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Sustaining Consumer Interest in the Program
What two benefits can increase an individuals
interest in a permission marketing program?

• Message relevancemust be relevant to the
  individuals needs.
• Monetary benefitmust be consistent with the
  individuals needs.

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Sustaining Consumer Interest in the Program
(continued)
Three mental transaction-related costs exist and
must be considered to sustain consumer interest

• Information entry/modification costs
• Message processing costs
• Privacy costs

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Suggestion

• Respect consumer as a partner Trust is number
  one for permission marketing
• Quantity than Quality
• Make out the creative way for voluntary opt-in
• To sustain the consumer a continuous incentive
  and stimulus.