Transcript Opt-out rate

Marketing Management 2010 Project
Permission Marketing
Hüseyin AKTAŞ
Introduction to Permission Marketing
 Introduction
 “Turning strangers into friends, and friends into customer.”
 Used in marketing in general and e-marketing specifically.
 Consumers provide marketers with the permission to send them
certain types of promotional messages
 History
 Permission marketing is a term coined by Seth Godin.
 Dates back to late 1990s.
What is it?
 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.
 It is mostly used by online marketers, notably email
marketers and search marketers, as well as certain direct
marketers who send a catalog in response to a request
Insights Offered by Permission Marketing
 Product co-creation and consumer control:
 Co-creation : Permission marketing envisions marketers and
consumers as partners in creating a marketing mix.
 Consumer control: A key element of permission marketing
is consumer control. A firm cannot send a message to a
consumer without their permission.
Business Models
Business Models (continued)
 Model 1 (Advertiser – Customer)
 Model 1 can best be characterized as direct relationship
maintenance.
 For example consumers can sign on for sales alerts from X
company.
 Very little additional information is asked for and hence,
there is no sophisticated targeting being conducted here.
 This is seen as an additional service offered to customers to
maintain a strong relationship. Hence, this is characterized by
low permission intensity, direct contact with advertiser and
minimal targeting.
Business Models (continued)
 Model 2 (Portal – Consumer)
 Can be described as a permission partnership.
 Here, the consumer provides a portal or media site with the
permission to send him or her promotional offers.
 This is commonly used to increase traffic to websites.
 Hence, here we have low to medium permission intensity,
contact through an intermediary and low targeting.
Business Models (continued)
Business Models (continued)
 Model 3 (Ad-market)
 Can be described as an ad market.
 A consumer provides an infomediary (Hagel & Singer, 1999)
with detailed information about his or her preferences and
interests.
 The infomediary then uses this information to identify
advertisers.
 The ads supplied by these advertisers are then carefully
targeted to be consistent with the consumer’s tastes.
Business Models (continued)
 Model 4 (Permission Pool)
 Can be described as a permission pool.
 Different consumers provide different firms with the
permission to send them promotional offers.
 These firms pool the information provided by the consumer
and then promotional messages are sent out targeting this
larger pool. Examples of this practice include yesmail.com.
E-mailing
 E-mailing: Best tool for PM
 Provides Interactivity—means two-way, rather than
one-way communication.
 Rapidity—means that a message can travel swiftly
from marketer to consumer, providing quick
feedback.
 Reach—e-mail provides good reach since a large
proportion of the population has an e-mail address.
E-mailing (continued)
Figure : Media Buyers’ Perception of Most Responsive Marketing Method
Types of Permission
 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.
 Double or Confirmed Opt-In: When 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.
Measuring Consumer Interest
 Opt-out rate: The proportion of the database that has
opted out of your program.
 Virtual opt-out rate: The proportion of the database
that has not responded to any offer you have sent out
during a six-month period.
 Zero communication rate: The proportion of the
database that has not communicated with you in any
way over the last six months.
 Profile updation rate: The proportion of the database
that has updated its profile in the last six months.
Permission Marketing Tools: Examples
Conclusion
 Permission marketing is a form of marketing that is
quite useful to advertisers.
 This method is one of several developed by marketers
to eliminate the disadvantages of e-mail marketing.
 A company does not want to be placed into a
permission marketing system that abuses its consumers.
 Avoid to SPAM rules and laws.
Thank You!