BY TOM FRICANO
Most companies have realized the benefits of reaching out to customers as part of their email marketing campaigns and understand that this outreach can strengthen bonds and establish familiarity. However, starting an email marketing campaign is a bit more complicated than it used to be, as there are rules and regulations businesses must follow or face potential fines.
Regulations such as the General Data Protection Regulation (GDPR), California Consumer Privacy Act of 2018 (CCPA), as well as customer backlash related to poor customer experiences, has forced businesses to carefully review their email practices, wording and customer opt-out options.
If you aren’t completely sure you are following all of the regulations, there are companies that specialize in helping keep your communications legal. They deal with customer consent and preference management in your email communication, and also provide guidance on how to mind your manners in your email wording to help build a relationship and trust with your customers.
Customer consent is important because it grants permission for brands to provide marketing or service communications with prospects and customers. Preference management is also important. We all sign up for newsletters, product information, promotions as well as lifestyle preferences related to things such as travel. Therefore, it is important for all customer-facing departments (e.g. marketing, sales and customer service) within a business to make it very easy for customers to indicate and change their preferences as their interests evolve over time.
Companies today are spending millions on marketing technologies that enable seamless customer consent and preference management. Research firm Markets and Markets estimates that the consent management industry will represent $765 million by 2025, up from $317 million in 2020.
While many businesses are realizing they need these critical technologies to enhance, refine and preserve the overall customer experience, they should do their homework when selecting the right preference and consent management technology provider to work with – as not all are created equal.
At first glance, there are a handful of enterprise-level technology providers that do everything from customer relationship management, to marketing automation to preference management. These cloud-based software companies have the look and feel of a “big box” provider and offer a suite of applications that help companies manage all aspects of their business.
The allure of working with a provider such as this is the single vendor, all-in-one solution where there are often no additional costs or integration required for a core platform. However, what they gain in their single-stop allure, they often fall short in truly satisfying the unique, holistic and cross platform solutions needed for preference and consent management requirements for each individual company.
Specialty and boutique providers that focus on preference management and consent solutions offer a more holistic approach that includes strategy, best practices, process and governance in addition to technology. They often start by interviewing their customers’ customer to understand what’s truly important to the consumer. With this insight in hand, they are able to design a solution that meets both the consumers and organization’s needs. With this roadmap in place, they are ready to manage the deployment process and help gain adoption. This greater internal and external adoption leads to increased customer engagement, improved marketing ROI and higher revenue potential.
Along with internal adoption comes the ability to help integrate preferences for consumers across the entire organization and its many departments – a critical function.
On the surface, listening to customers and honoring their preferences is not only obvious, it’s a must in today’s customer-driven business climate. Every business today must listen to their customers and the outcomes are immediate and apparent. As digital environments grow increasingly more complex – along with the penalties introduced for non-compliance – businesses of every size and in every region must rely on the right solutions.
The General Data Protection Regulation (GDPR), a data privacy law, became enforceable on May 25, 2018. It sets guidelines for the collection and processing of personal information from individuals who live in the European Union (EU) and the European Economic Area (EEA). It also applies to U.S. companies the offer goods or services to EU/EEA residents or monitors their behaviors, according to Termly.
The California Consumer Privacy Act of 2018 (CCPA) gives California residents more control over the personal information that businesses collect about them and the CCPA regulations provide guidance on how to implement the law, according to the State of California Department of Justice, Office of the Attorney General. Businesses are required to give consumers certain notices explaining their privacy practices.
Tom Fricano is the Practice Director of Strategy and Consulting at PossibleNOW. With more than 25 years of experience, Tom assists clients with customer experience, preference management and consent initiatives through advisory and strategic consulting, technology expertise and project to product to implementation roadmaps.