Personalized Email Addresses Privacy Concerns
by Scott A. Martin

Consumers are fed up with having their e-mail inboxes bombarded with spam - unsolicited, commercial e-mail from marketers and companies wishing to sell them a concept or product.

One solution that could help resolve this issue and perhaps satisfy both the needs of consumers and business is personalized e-mail.

Consumers who have a thirst for information are also re-defining how and when they want to receive this information. As a result of continuous e-mail harassment by unwanted solicitors, consumers naturally are resisting the urge to grant permission to receive information they do not specifically ask for, and they are becoming less willing to share personal information with marketers.

However, a recent study by the Personalization Consortium, an advocacy group of companies formed to promote the responsible and beneficial use of technology for personalizing consumer and business relationships, indicated there was light at the end of the marketing tunnel.

Essentially, the results showed that consumers want control over their personal information. The study also indicated that consumers would share information under certain conditions. The determining factor in this process was how marketers communicated with them. As an example, if marketers provided communication that was personalized (one-to-one), offered a value proposition and contained relevant, timely information, consumers said they were more likely to share their personal information.

Customer permission is on the fast track to becoming a high-priority business issue and not just a marketing problem. Companies can no longer assume that they have permission to contact a customer just because that customer purchased their product or service. Marketers must become more proactive ÷ such as creating a plan to gain explicit customer permission for all their marketing initiatives.

Personalized e-mail is a refreshing direct marketing approach with a huge, positive upside. Unfortunately, it is currently under fire.

Why? Largely because of impending legislation such as that being proposed in Ontario. Such legislation, if passed, will not allow e-mail communication with a consumer without their explicit permission.

One of the interesting aspects of personalized e-mail is that if it is done correctly (ethically), personalized e-mail marketing can be a win-win for both the consumer and the marketer.

Without explicit permission, I believe there will be a formidable consumer backlash. In my view these consumers will start opting-out (not giving permission) of everything that arrives in their e-mail in-basket.

For marketers, the potential for consumers choosing to opt-out will be costly. To gain consumers' confidence and persuade them to opt-in again will take time and a lot of marketing dollars.

My point is this: Don't wait for this to happen ÷ be proactive and take the high road to gaining consumer permission.

Let me illustrate my point further. Remember the 1980s when the U.S. automotive industry fought emission controls legislation by lobbying government to stop legislation that it said would ruin the auto industry? The Japanese, rather than fighting the legislation, saw it as an opportunity to gain market share and worked quickly to comply. In the end, the Japanese zoomed ahead of the Americans in the compliance race and became firmly entrenched as a major player in North American automotive sales. On the other hand, the North American automotive sector lost its lobbying effort and ended up complying with the legislation. More importantly, its members no longer dominated North American auto sales.

Those companies that are currently employing what I call proactive permission marketing strategies are really integrating three basic principles of permission-based e-mail marketing. First, to gain consumer e-mail permission, these companies are providing and exchanging ongoing value. Second, to maintain consumer permission, these organisations are engaging their target audiences and convincing them with a winning strategy that is earning their permission and loyalty over time. Third, to increase the number of customers providing permission, these companies are providing customers with benefits that encourage them to recommend that company's service or product to others.

I have also observed that companies who are successfully employing e-mail marketing as another way to grow their business are following common sense business practices.

Typically, they are doing more than everyone else in their sector. As an example, they may go beyond existing or pending legislation and user expectations to ensure the security and privacy of personal information.

These successful e-mail marketers also are keenly aware that customer loyalty will be proportionate to the explicit permission existing customers give them to contact them again regardless of the product or service purchased. Consumers may demand to be left alone. The smart e-mail marketer is listening and will comply. As an example, filling out a warranty card is not a "carte blanche" to contact customers again without their permission.

Timing is everything. However, in e-mail marketing timing and content is everything. Marketers are getting much better at strategically staging their request for permission with appropriate content and timing. Clearly, those marketers that develop a strategic global marketing permission plan-of-action are going to be the frontrunners of their industry sector. Those that do not plan ahead run the risk of extinction.

E-mail marketing is one form of direct marketing that is here to stay. Direct e-mail marketers have a unique opportunity to build trust with consumers by deploying an effective personalization strategy that will allow them to gain explicit permission leading to consumer insights and information not previously available. Those marketers that choose to continue to spam customers run the risk of having their message deleted, unread.

The message for marketers in my mind is clear. Take the high road. Gain explicit permission starting today. Build your customer base through ethical, personalization strategies. Go beyond what other marketers are doing. Don't wait for legislation to dictate what you can or cannot do. Start planning your global marketing permission e-mail strategy today, and start turning e-mail inboxes into cash boxes that generate recurring revenue.