Permission-Based Email Marketing: What Is It and How Does It Work

On December 02, 2024
6min read
Brooks Patterson Head of Product Marketing @RudderStack
Permission-based email marketing explained

In 2023, spam made up 45.6% of email traffic globally.

Even though you’re sending engaging and relevant content, users may still tag it as spam if they didn’t expect to receive it.

What’s the remedy for this situation?

Gain consent from existing and potential customers. Read this guide to learn about permission-based email marketing and how it helps your business.

What is permission-based email marketing?

Permission-based email marketing is an approach where businesses gain user consent before sending commercial emails. It prevents users from receiving unsolicited emails from businesses. 

Permission email marketing enables businesses to better connect with interested customers and comply with regulations. 

Besides email newsletters, permission marketing also applies to:

  • Promotional email campaigns
  • Customer feedback surveys
  • E-books, webinars, and whitepapers
  • Loyalty programs
  • SMS text messages
  • Mobile app notifications

Today, permission marketing is easier than ever. Use email marketing solutions with business architecture platforms to align your strategy, focusing on customer preferences for opt-ins and relevant materials.

Do you need permission to send marketing emails?

Yes, you need permission to send marketing emails—this isn’t the 1990s with dial-up modems and constant barrages of “You’ve got mail.” Regional laws such as the EU’s General Data Protection Regulation (GDPR) require consumer consent for you to send commercial email content. 

Laws such as the CAN-SPAM Act also outline how businesses can contact people by email.

Basic CAN-SPAM guidelines include:

  • No false or misleading headers
  • Identify content as an ad
  • Let users know where you’re located
  • Tell email recipients how to unsubscribe
  • Remind subscribers they can opt out at any time
  • Promptly process opt-outs

The abbreviation stands for Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003. The important thing is that the mouthful is as serious as it sounds — a CAN-SPAM violation can result in a fine of up to $51,744 per email.

Daily number of spam emails sent worldwide, by country, as of August 2024.
Source

The US is number one in a lot of things; however, being first in spam emails isn’t something to cheer about. A 2024 report found that over eight billion spam emails are sent in the US every day.

But, to stress, don’t be a spammer; gain consent – it should be simple. However, sometimes businesses get confused about what type of permission is required.

  • Explicit permission: Users take action to give you permission to send marketing communications, such as emails, offers, and other types of newsletters.
  • Implicit permission: Users give you their email address when signing up for an app, subscription, or creating a user account. While permission is implied, they haven’t given explicit permission for you to contact them through email.

The benefits of opt-in email marketing

At first glance, it appears that permission marketing does nothing but shrink down your email contact lists. But there’s much more to email opt-ins—it’s a win-win scenario for you and your customers.

Permission-based email marketing benefits include:

  • Higher open rates: Customers are more likely to open and click through emails if they already expect them to appear in their email inboxes.
  • Improved compliance: Opt-ins help you meet many compliance requirements for customers from all over the world, reducing the risk of penalties and fees.
  • Improved user experience: Customers get more control over the marketing content they receive, only being solicited by relevant brands and email types.
  • Build consumer trust: Asking for permission and setting clear expectations helps promote confidence in your business.

Permission-based email marketing best practices

Email marketing tactics, such as newsletters and free e-books, are great for both B2C and B2B lead generation. Drip campaigns and other email promotions also help you nurture relationships with existing customers. 

Regardless of what’s happening, send every message through the gatekeeper of consent. 

Follow these tips to implement a permission marketing strategy for your email tactics:

Use double opt-ins

What’s a double opt-in? Well, it’s exactly what it sounds like. You get explicit consent from a new subscriber twice

Here’s how it works: A website visitor encounters a lead magnet or popup form. They fill out their contact information, including an email address, in exchange for something like access to a white paper or to create a user account. They tick the box to receive marketing email messages. 

A confirmation email is sent to their account. They must then open the email and click on a verification link to confirm they opt-in.

Why do this? First, it ensures no one is being misled into receiving emails. Second, it lets you know the email address is healthy and active—exactly the accounts you need on your contact list.

Implement compliant forms

It’s not good enough to include a line about opting in for an email or agreeing to receive promotional materials. Remember, permission-based email marketing is all about gaining explicit consent. The user needs to take an action to signify they agree to receive marketing content. 

Ticking a box is an action. Include a box on any email sign-up forms on your website and mobile app.

Pro tip: For compliance, the opt-in box must be separated from any terms and conditions boxes on the form. 

Below is an example of a non-compliant vs. a compliant opt-in form.

A non-complaint form vs. a GDPR-compliant form.
Source

Set clear expectations

There’s no room for vagaries and implied promises with permission marketing. Every new subscriber should be able to easily understand what they’re signing up for and what they can expect to get in return.

They may be signing up for relevant marketing content, a promo code, or some other incentive. Whatever it is, you need to set clear expectations for every user.

Here are some basic guidelines for opt-ins:

  • Use minimalized forms, only asking for the information you need.
  • Keep any related copy clear and concise.
  • Ask for separate consent for different types of email.
  • Don’t make consent a requirement to receive the incentive.
  • Add a link to your privacy policy and terms and conditions.

Send welcome emails

Good news: someone just gave you permission to send them your weekly newsletter! So what now? Start things off on the right foot by sending out a welcome email to new subscribers.

A welcome message gives you a chance to set up future expectations and showcase your brand and its products. Send polished welcome emails that feature the best of what you have to offer—it’s always nice to include a free gift or discount code.

You can even try going for a welcome series of brief emails that each engage users in different ways. For instance, one could talk about your brand, the next could talk about your products, and the third could offer a free trial of your service.

Make it easy to unsubscribe

Both the GDPR and CAN-SPAM require you to make it easy for people to opt out of emails. Your welcome email is a great opportunity to highlight the exit process for new subscribers. 

It’s a good idea to have an unsubscribe button or link clearly in every message you send out. Otherwise, you risk users clicking “unsubscribe” directly through their email platform. Even worse, they may voluntarily flag your email as spam.

Avoid causing confusion and frustration with easy and transparent opt-outs.

Personalize email content

Don’t simply send generic emails to your subscriber list. According to McKinsey, 71% of customers expect personalization from businesses they choose. 

Percentage of consumers in various countries who would stop using a brand that doesn’t provide a personalized experience.
Source

Use email workflow automation tools combined with templates for your newsletters and campaigns. These tools allow you to add personal touches, such as the user’s name, and provide relevant information, such as product recommendations. 

Focus on zero-party and first-party data for personalization. In other words, customize email marketing around the information the customer gives you and what you can gather. 

The former is relatively easy. Gather information from subscriber forms. The latter requires tools such as Google Analytics and other tools that track user behavior. 

These solutions handle ETL for customer data coming in from each app, centralizing information for better insights into customer behavior and personalization.

Clean up your email list, re-engage users

As your email list grows, it’s inevitable that some subscribers will become inactive. That’s why it’s important to constantly segment email list and keep the contact list relevant. One of the benefits of a permission-based approach is focusing your campaigns for higher click-through rates (CTRs). 

Your permission boost in performance is diluted by now unused email accounts. Send out re-engagement emails to inactive subscribers. What exactly is inactive? That’s up to you. Look at your email metrics, such as open rates, CTRs, and conversion rates. 

Find natural cut-offs. However, a good rule of thumb is that someone who hasn’t opened your last five emails has gone AWOL. 

Some permission-based re-engagement best practices include:

  • Send a verification link to confirm the user is still active and wishes to continue receiving emails.
  • Ask the subscriber if they wish to opt out of further messaging.
  • Go omnichannel, and ask users if they have preferred contact channels besides email, such as SMS texting or phone calls.
  • Set an expiration date. If recipients don’t re-engage after a set amount of time, take them off of your email list.
  • Give them a reason to open in the subject line, such as “We’ve missed you. Enjoy [personalized offer].”

Gain consent and reach your target audience

When you gain consent, everybody wins. Use permission-based email marketing to shore up your campaigns. See better results by targeting interested prospects and by building trust from the get-go. 

Stand out from the crowd by avoiding shady tactics and gaining explicit consent every time you gain a new subscriber. You’ll be rewarded in the long run with better compliance and happier customers.

Article by Brooks Patterson Head of Product Marketing @RudderStack

Brooks leads Product Marketing at RudderStack. With a strong foundation in content creation and product marketing, he’s crafted engaging content and is the mind behind the top episodes of The Data Stack Show. He is passionate about making content that connects on a deeper level and drives action. He always champions innovation in his work, which makes his contributions vital to RudderStack’s developments in warehouse-native CDPs.