How to Use Consumer Data Safely in Marketing

As the leading direct mail automation platform in the US and Canada, we spend a lot of time exploring how to use consumer data safely.

Regulations like the European Union’s General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), Canada’s Anti-Spam Legislation (CASL), and other emerging rules like California SB 1096 make it difficult to gather and use consumer data via electronic media. Agencies tasked with producing results for their clients with electronic messaging are hampered by eliminating third-party cookies or other privacy-related measures. They are looking for alternatives.

Direct mail is unaffected by these regulations, allowing marketers to target their offers according to readily available household demographic data – data that is surrounded by less law than electronic messaging. Rules about collecting and using consumer data still apply to direct mailers. However, marketers have access to demographic information that can be used to target potential buyers effectively. Marketers use this information to segment their lists or drive variables included on the printed materials, affecting the graphics or offers.

Spam laws make it virtually impossible from a legal standpoint to send unsolicited email messages to prospects. No such regulations stop marketers from contacting consumers via postal mail. Several states are considering legislation that will similarly affect direct mail marketing, so stay in touch with your Postal Representative or industry mail professional for any developments.

What Are Data Privacy Laws?

Data privacy laws are legislation designed to protect individual users’ rights to data privacy and security. They typically include rules about how companies can collect and use data and how users are informed. Data privacy laws govern nearly every aspect of how a business engages with consumers digitally, including email marketing. The most expansive law is the GDPR, which governs the European Union. Canada and California have their own rules. Other individual states and countries have or are considering similar consumer data use specifications.

Complexity

The privacy rules are complex and bear harsh penalties if not followed. This is an immediate concern for a marketing manager or agency. For example, the GDPR requires that businesses obtain the consent of anyone before contacting them via email. Additionally, the GDPR requires that companies demonstrate how they obtained permission and whether any consenting users have since unsubscribed from email marketing communications. Marketers must also delete a user’s data upon request. California’s CCPA is similar but has additional requirements.

Compliance

GDPR violations carry steep penalties. A company that violates the data privacy requirements is subject to fines of up to 20 million euros, or 4% of the company’s annual revenue, whichever is greater. If you have a handful of European email addresses on your marketing email list and are unsure how they got there, delete them, at least for the moment. You are still liable even if the email originated in the United States. Fines for California’s CCPA regulation range from $2,500 per unintentional violation to $7,500 per intentional violation. Businesses generally have 30 days to reverse any violations and solve the problem to avoid liability.

Direct Mail is Safe and Effective

As a manager, corporate marketing department, or agency, you produce results from the marketing campaigns you launch. As governments enact rules for electronic communication, the importance of direct mail becomes clear. Marketers enjoy more freedom to use intelligence to reach an audience. Moreover, customers physically touch your messaging. They interact with the mail piece. The jumbo postcard stays behind the banana magnet on the refrigerator for days. Direct mail drives physical visits to your business or virtual visits to your website.

Direct Mail’s Common-Sense Regulations

No federal mail laws prohibit direct mail advertising on the national level. Still, Postalytics recommends marketers avoid any issues by following the existing regulations for direct mail marketing. Adherence is straightforward. Below is a quick summary of postal mail laws in the United States and what they regulate:

The Deceptive Mail Prevention and Enforcement Act (DMPEA) (39 U.S.C., Section 3001)

Non-governmental entities cannot send solicitations that imply a connection with the federal government for the purchase of products or services. It also prohibits mailing sexually oriented materials to those who refuse such mail with prior notification to the postal service.

Theft or Receipt of Stolen Mail Matter Generally (Title 18 U.S. C., Section 1708)

This federal law punishes citizens that steal, abstract, take, or obtain by deception/fraud any postal mail.

Health Insurance Portability and Accountability Act (HIPAA)

This act protects the medical information of US citizens and modernizes the processing of patient records. It prohibits sharing mailing lists used by medical facilities.

Direct Mail Automation Software Compliance Tools

It’s important to respect both the letter and intent of the laws that protect consumer data. Generally, you’re better off NOT mailing to people who have asked to be removed from mailing lists. They clearly are unlikely to buy whatever you’re selling and have asked you to remove them from your lists.

Leading direct mail automation software like Postalytics offer several tools to help you comply with rules and to stop mailings from going to people who have requested removal from your lists.

Suppression Lists

Suppression lists are mailing lists that are used to “suppress” or “not mail” to members of the list. These are commonly used by savvy marketers to limit a mailing to recipients that are likely to respond to an offer.

Good direct mail automation software enables suppression lists to be used for any mailing campaign. While suppression lists are commonly created to suppress mailings for campaign ROI reasons (why send a mailing for a product to existing customers?), they can also be used to suppress consumers that have requested removal from mailing lists.

Global Account Suppression Lists

A Global Account Suppression lists is an ideal tool to use for consumer opt-out suppression. These lists operate on a “global” basis within a direct mail automation account, ensuring the members of the list are removed from all campaigns, without the need to manage the list on a campaign-by-campaign basis.

A few key attributes that make up a good Global Account Suppression List include:

• Permanent Availability: While accessible for viewing & managing, these lists should not be able to be deleted.
• Multiple Input Methods: Add contacts manually, via API, or through Append functionality.
• Edit and Manage: Search, download, or edit the list as needed. You should also be able to remove contacts if recipients change their minds—a common occurrence in opt-out scenarios.

Mailing Opt-Out Links

Another best practice, and now a requirement for some mailings in California, involve the use of “Opt-Out” links and pages. These are tools that you can add to your direct mail creative that provide a path for mail recipients to easily opt-out. The links that are included in the creative often lead to a form for a recipient to fill out and confirm they’d like to be removed from future mailings.

Recipients that utilize a mailing opt-out link and confirm they wish to be removed from future mailings should be added to Global Account Suppression lists automatically. Postalytics does this and also uses the CASS (Coding Accuracy Support System) database from the USPS to ensure that addresses added to suppression lists are standardized to help eliminate input errors.

Use Consumer Data Safely & Mail the Smart Way

Good marketers understand that most consumers really like getting mail, and the smart use of consumer data to drive targeted campaigns can generate great ROI. They’re also using cutting edge tools such as suppression lists and opt-out links to help ensure compliance with the evolving consumer data legal landscape.

Postalytics provides enterprise-grade direct mail automation with great compliance tools as well as workflow, integration, and analytics. Sign up for a free account and try it out!