With increased concerns about privacy, data collection and control, and customer choice, email marketing has changed and shifted in just the last few years. And while new legislation in Europe and Canada[1] has been received positively by many consumers, they have also required businesses small and large to take a serious look at the practices and policies governing their email marketing strategy, opt-in approach, and opt-out process.
In the EU the GDPR sets an opt-in requirement for email marketing and other outlets, and in Canada the CAN-SPAM Act has a similar opt-in requirement. In the U.S., however, businesses are only bound to adhere to an opt-out process, which requires users to unsubscribe from an email list if they no longer wish to receive these communications. The burden is also placed on U.S. consumers to opt out of marketing text messages and certain website cookies that collect user data.
In order to help demystify opt-out policies, requirements, and strategies for small businesses, we asked our panel of digital marketing experts from the UpCity network to share their insights on the topic. From personal data concerns and legal requirements to user experience issues and beyond, here’s what we learned.
What is an opt-out policy?
An opt-out policy is a set of explicit guidelines supporting your email and digital marketing efforts that allow current or prospective customers to choose not to receive marketing messages from your business.
An opt-out policy also dictates that once a user has chosen not to receive those messages, you will no longer send them emails or other marketing messages for an agreed-upon period of time.
Opt-out policies are less strict or restrictive than opt-in policies[2], as they allow you to begin with a larger database of contacts, each of whom can then select to remain on the contact list or opt out from your marketing messages. Opt-in policies, on the other hand, set a base requirement that customers and/or users must actively indicate that they wish to receive marketing messages from your organization in the first place.
While many U.S. businesses employ an opt-out policy for their marketing materials, those organizations doing business globally, including with customers and clients in Canada and the EU, must comply with the GDPR and CAN-SPAM regulations in all of their marketing efforts. This allows them to develop one comprehensive set of policies and execute their CRM and marketing efforts under that umbrella.
Opt-out options also fall under the CCPA, or California Consumer Privacy Act, which went into effect in 2020. Similar to other privacy legislation internationally, it provides more consumer control over the use, access, and retention of their data.
Why is it important to have an opt-out policy?
There are a number of reasons why an opt-out policy is both critical and beneficial for businesses. The first and most obvious reason is quite simply the legal requirement. But looking beyond legal compliance and liability issues, there are several more reasons why having an opt-out policy and offering your customers easy email opt-outs are important and beneficial.
“One of the reasons to have an easy opt-out policy is to narrow in on your audience. The people who wish to opt out are probably not going to ever buy from you, so you’re wasting your time marketing to them. It’s not a bad thing to lose people on your campaigns, as long as you are retaining your ideal audience. Narrowing in means that your message will be more effective, and you will have a higher conversion rate.” –Madi Taylor, Content Marketing Coordinator at 97 Switch[3]
Having opt-out options for your customers in your marketing emails, including a clear opt-out link, also demonstrates to customers that they have control over their inbox and their data. Plus, it shows a level of respect for customers that can help build trust and demonstrates that your business cares.
“No one likes being trapped in an unwanted marketing vortex. By having a clear and thorough opt-out policy, businesses show they respect their customers’ choices and sanity. It keeps them on the right side of the law, boosts customer satisfaction, and prevents their brand from being labeled as the clingy ex of the marketing world. Remember, happy customers mean a thriving business and fewer restraining orders.” –Valerie Nova, Art Director at Ubunzo[4]
Of course, privacy and opt-out concerns go beyond just email marketing. From the homepage to any and all eCommerce pages, it’s important to have a “do not sell” option for your customers who are browsing or purchasing on the web.
“An opt-out policy is an essential component of responsible marketing practices. By implementing a clear and user-friendly opt-out policy, you demonstrate respect for recipients’ preferences and build trust with your audience. This can contribute to positive customer experiences, compliance with regulations, and long-term brand loyalty.” –Robin Dimond, CEO and Founder, Fifth & Cor[5]
How can SMBs minimize or reduce opt-outs?
Of course, as a small business owner or marketing professional, the goal is to reach as many people as possible with your product and your message. As a result, opt-out policies can seem like a detriment to your goals. And while there may be an initial change in your database numbers, opt-out strategies don’t have to be a drain to businesses that handle them well.
Our experts also offered a number of tips on how you can reduce the likelihood that people will opt out of your marketing efforts. While you want to offer the option to everyone, many customers will continue to subscribe and engage as long as they are getting some value from your messaging.
“As an email marketer, reducing opt-outs and re-engaging opted-out contacts should be a top priority. One of the best ways to reduce opt-outs is by providing valuable and relevant content. Ensure that your email is personalized, and the subject line is catchy. Another way is by optimizing the email frequency. Bombarding customers with too many emails can be overwhelming, causing them to unsubscribe or opt-out.” –Kimmisha Michels, CEO at En’liven Creative Agency[6]
Clarity and accuracy are two more important tips to help reduce the number of people opting out of your email or digital marketing efforts. As long as customers know who the message is from, and that they have the option to unsubscribe, they are more likely to stay subscribed and engaged.
“Ensure your email messages identify your organization as the sender, along with your contact information. Ensure you include information on how to easily opt-out. Being transparent about how you are using consumers’ information means they will be less likely to opt out.” –Leah Smith, Senior Data Protection Consultant at Evalian Limited[7]
Making your emails and other marketing efforts valuable to customers in one way or another is one of the tips we heard again and again from our experts, and it makes sense. Whether through interesting content, offers, or a combination of efforts, there are almost surefire ways to keep people on your list and engaged with your messaging.
“Enhance your targeting, offer exclusive content or deals, and personalize your content. People are more likely to engage with marketing messages that feel personalized and relevant to their interests. This could include early access to sales, special promotions, or unique content that cannot be found elsewhere. Businesses can achieve this by segmenting their lists and personalizing their messaging based on the recipient’s location, past purchases, and other attributes.” –Paul Floyd, Owner of Blue Frog Web Design & SEO[8]
Opt-out policy tips for SMBs
Just like other areas of your digital marketing approach, there are many options to create and implement an opt-out policy for your small business. And your existing efforts–including social media, templated communications, and more–can help you think of options like a/b testing, template updates, and more.
“My best advice for a new business implementing an opt-out policy is to prioritize transparency, simplicity, and compliance. Clearly communicate how they can opt out of receiving marketing communications, making the process as simple and user-friendly as possible. Also, educate your team on best practices to ensure compliance with privacy regulations, such as honoring opt-out requests promptly.” –Reetesh Sharma, Sr. Marketing Manager at EvenDigit[9]
Just as you would aim for with your calls to action and social media content, the importance of transparency and clarity cannot be overstated. Making things clear and easy for customers shows that you are putting their needs first.
“When implementing an opt-out policy, ensure it is clear, easily accessible, and user-friendly. Clearly communicate the process to customers, respect their preferences, and promptly honor their requests. Regularly review and update the policy to align with privacy regulations and customer expectations, fostering trust and transparency.” –Nick Fernandez, Founder of Upsway Marketing[10]
Another great option that reinforces clarity is acknowledging opt-out requests. Communicating with customers that their request has been received and acted on is not only courteous, but it reinforces your commitment to your business’ responsibilities and to being responsive to your customers.
“Sending a confirmation when someone opts out is a good practice. It shows that you’ve received their request and that it’s been successfully processed. This confirmation helps build trust and reassures individuals that their preferences have been heard and respected. Who knows, this may be enough for them to opt back in! “ –Robyn Resnick, Marketing Manager at The Methodical Group[11]
More opt-in and opt-out marketing advice
Our panel of experts was generally in agreement on their tips for developing and implementing your opt-out strategy, as well as many of the reasons why having a thorough and clear opt-out policy is actually good for business. But, as you can imagine, they had a great deal more information and advice to offer than what we could fit into this roundup.
Whether you are just getting started on compliance in your customer communications or you’re looking to develop more robust and effective marketing strategies, contact one of the dozens of trusted digital marketing experts and partners in the UpCity network.
With reviews and recommendations from other small business owners and marketing professionals, you will be able to find a qualified business partner who can help guide your efforts and offer their expertise to power your ongoing success.
Sources
- GDPR: Email Marketing in the Age of Digital Privacy, Business.com
- Opt In vs Opt Out in Email Marketing, iubenda
- 97 switch home page, 97 switch
- ubunzo h0me page, ubunzo
- Fifth & Cor home page, Fifth & Cor
- En’liven Creative Agency home page, En’liven Creative Agency
- Evalian home page, Evalian
- Blue Frog Web Design & SEO home page, Blue Frog Web Design & SEO
- EvenDigit home page, EvenDigit
- Upsway Marketing home page, Upsway Marketing
- The Methodical Group home page, The Methodical Group