Honour the Opt-out

13 Mar Honour the Opt-out

By Gareth Mountain, Head of Sales, Olico

A recent segment aired on Carte Blanche highlighted the frustration experienced by consumers when receiving marketing messages via phone, especially after they Opt-out. The programme certainly made the case that ethical and responsible marketing is now more important than ever.

In a previous article I emphasised why it is in companies’ own best interests to toe the line when it comes to direct marketing best practices. It boils down to the fact that ethically it is the right thing to do, and that they should not wait for the implementation (and subsequent fines) of the Protection of Personal Information (PoPI) act to kick in to respect the consumer.

Nevertheless, it is worthwhile exploring what PoPI holds in store for companies undertaking any form of direct marketing, and the importance of honouring consumers’ right to opt out of the marketing process.

Electronic comms and outbound calling

The most notable point to understand when it comes to electronic channels of communication (email, SMS, Automatic Voice Messaging), is that companies will need explicit opt-in permission to contact the consumer. Here it is not about having the legal right to market to them as the Electronic Communications Act currently specifies, but rather being able to prove that they specifically gave permission for your communication.

This is set to bring about an overall decline in electronic marketing, and securing that valuable opt-in permission is going to be crucial. Yes, some companies will certainly struggle, but by providing relevant, ethical, targeted deals to your consumer database, there’s no reason for them to opt-out, especially if your offers are beneficial.

When it comes to outbound calling, PoPI permits one marketing call to a person, even if they have not opted in. During this call, operators can attempt to get them to opt-in for future marketing (both electronic and voice). While this might protect jobs in the South African call centre industry, it could   result in locals receiving more intrusive calls, while less intrusive email and SMS marketing declines.

Respect the No

One thing to keep in mind during all marketing communication, is to respect the public’s requests. If a person asks to be removed from your electronic marketing or direct calls, make 100% sure to comply and ensure their number/email does not slip through the cracks to the next campaigns.

On a national level the Direct Marketing Association of SA (DMASA) has established a National Opt Out Database to adhere to. Paid-up members of the DMASA have access to this database as well as the process involved in making sure that their own database corresponds to the DMASA no contact list. This is through a process called “Deduping” and ensures companies do not accidentally market to anyone on this national do-not-call database. DMASA members also need to adhere to the code of conduct which regulates behaviour in the industry.

The responsibility of the company

When it comes to a company-wide level, it is best to automate the opt-out process so that human error is taken out of the equation. Keep a record of the opt-outs and inform the consumer that they have indeed been taken off the database. One grey area where we believe companies might try and bend the rules, would be to opt-out the consumer on a product-level, meaning that although they have said no for marketing on one brand or product, the company will continue with marketing other products in the stable. It is unlikely, however, that a consumer will decline receiving marketing for one product, and still want communication for another. Rather take them off the database completely.

The reasons why companies must honour opt-outs are numerous, with the fact that the PoPI Act allows for fines of up to R10 million or jail time for violation perhaps standing out as the most prominent. But with the ethical behaviour of companies under the spotlight locally, the moral responsibility of respecting the consumer should not be ignored.

About Olico: Lending and Innovation Company, Olico, is an online and mobile marketing partner. It offers an end-to-end service, enabling financial service providers or other advertisers to market and sell their products in a highly targetable way. Olico works with blue-chips Liberty, Sanlam, Hollard, RCS, 1life Direct and many more, using a CPL or CPA model, generating over 10 000 insurance sales and over 100 000 loan applications per month. Olico was founded by Mike Kann in 2013. It is a member of the DMA and is POPI compliant.