Permission Marketing

Permission marketing is a concept introduced in a book of the same name in 1999 by marketing expert Seth Godin. Permission marketing is a non-traditional marketing technique that advertises goods and services when advance consent is given.

Permission marketing has increased in popularity, particularly with respect to digital marketing. Subscription email updates are a good example of permission marketing. Users can opt-in to receive periodic emails with updates and offers based on the interests they expressed when they registered on a website or other consumer touchpoint. Subscribing, in this case, is the act of giving permission and allowing themselves to be marketed to.

Benefits

Permission marketing allows consumers to choose whether or not to be subjected to marketing. This choice can result in better engagement. For example, consumers are more likely to open an email marketing message if they “double opt in” compared to a regular “single opt in“. By targeting volunteers, permission marketing improves the odds that consumers pay more attention to the marketing message. Permission marketing thus encourages consumers to engage in a long-standing, cooperative marketing campaign.

Cost-efficiency: Permission marketing employs low cost online tools social media, search engine optimization, e-mails, etc. Furthermore, by only marketing to consumers who have expressed an interest, businesses can lower their marketing costs.

High conversion rate: As the targeting audience are those who have expressed an interest to the product, it is easier to convert the leads into sales.

Personalization: Permission marketing allows businesses to run personalized campaigns; it allows them to target specific audiences according to their age, gender, geographical location, etc.

Long-term relationships with customer: Through the usage of social media and e-mails, businesses can interact and build long-term relationships with the customers.

Marketing reputation: Permission marketing only sends information to those who are anticipating the information. Therefore, prospects who receive the information feel less discomfort.

Levels

There are 5 levels of permission in permission marketing. These “levels” measure the degree of permission a consumer has granted to a specific business. At each successive level of the permission framework, the business achieves a higher efficiency state, with a decrease in marketing cost. Thus, businesses usually aim to achieve the “intravenous permission” level. However, the 5 levels of permission should not be considered as a necessary sequential process, as more than one level could apply simultaneously depending on the nature of the business.

Situational permission: The prospect permits the business to come into contact by providing their personal information.

Brand trust: The prospect permits the business to continue supplying their needs.

Personal relationship: The prospect’s permission is granted because of a personal relationship that he/she has with someone in the provider organization.

Point’s permission: At this stage, the customer has agreed to receive goods or services and has allowed the business to collect their personal data. This is usually because they are provided with incentives, such as exchangeable points or an opportunity to earn a prize.

Intravenous permission: The supplier has now taken over the supply function for a specific good or a service; the customer is completely dependent on the business. This is the highest level of permission. The marketer, who has taken over the intravenous permission will be making the buying decisions on behalf of their Customers.

Permission Marketing vs. Traditional Direct Marketing

Direct marketing in the traditional sense is often blind marketing little is known about the target audience other than the postal code. For example, a real estate agent might send a postcard with their details to every home that has a particular zip code in a certain area.

A permission marketing approach would involve a real estate agent using a blog to share content about home prices, mortgage rates, and tips on selling a home specific to that same area. The blog might show a link to an email newsletter opt-in that prompts the user to answer basic questions that help the real estate agent determine what services they might need. For example, “When did you purchase your current home?” or “Do you intend to buy a home in the next year?” This information can be used to segment emails into different lists and further personalize the content. This type of communication builds a relationship with subscribers. When the time comes for them to sell or buy property, they will be likely to contact the real estate agent who is already communicating with them and with whom they have a relationship.