Maximize your opt-in rates for the use of customer data in marketing through a deeper understanding of what customers truly want in exchange
Gaining and retaining the consent of customers for the use of their data in marketing is a constant challenge for all telcos. Consumers expect to receive personalized services and, while they are often willing to opt-in to the use of data in order to get this, concerns about privacy and how data will be used are widespread. Therefore, an effective consent management strategy is an essential part of telco marketing.
The challenges of gaining consent
The first step is to ensure you have the necessary permissions to use customer data in telco business intelligence and analytics processes. Without consent, telcos will never be able to take full advantage of the wealth of first-party data they hold. Yet getting consent can be tricky.
A move away from an environment of assumed consent to one where customers are required to actively opt-in to accept the use of their data poses many challenges. From regulations such as GDPR, which set out strict rules on how to gain consent, to tech industry efforts by the likes of Apple and Google, the balance has shifted significantly in favor of privacy in recent years.
Telcos are required to disclose that customer data will be used for marketing purposes, and firms may be reluctant to do this out of worry it can create suspicion. As such, it’s essential for organizations to demonstrate the positives – and most customers expect to get something out of this consent.
For some, this could be relevant, informative content. For others it might be free items such as coffee. Others will want reassurances their information won’t be passed on to third parties, while some never consent to the use of their personal data.
Getting consent where possible, however, is vital to the success of marketing campaigns. Telcos have an incredibly rich first-party data source that can be used to greatly improve their personalized marketing. Yet in many cases, data such as weblogs is mainly used only for operational purposes – partly because firms struggle to work with this data quickly and at scale and partly because of consent issues.
Maximizing the value of your opted-in customers
In order to maximize rates of opt-ins, telcos should treat this as part of their customer journey management activities. Privacy is an integral part of the customer experience, yet many companies still fail to tie these areas together.
With the right insight into who a customer really is beyond demographic data – their interests, brand affinities and the services they use – telcos can provide customers with real value in exchange for opting in.
However, developing tailored, relevant messages for these users is just the start. The insight gained from these customers can also be used to help retain and increase consent. By looking at which messages keep customers opted-in, when they share a specific cluster of interests and demographics, telcos can create detailed, segmented models of their customers to identify those who are most likely to opt in.
This can in turn allow firms to tailor consent-focused campaigns that offer the most relevant incentives and reach only those people who are likely to switch their status, while avoiding wasting time, money and goodwill contacting those who will not do so under any circumstances.
However, once opted-in, it’s also critical that telcos don’t treat this as mission accomplished. They will still have to carefully tailor and measure their communications to each customer to make sure they actually realize the value of this.
Delivering the right message, via the right medium, at the right time is vital in maintaining consent. If the marketing materials aren’t deemed relevant, come too frequently or interrupt customers where they don’t want to be reached, they will quickly withdraw their consent.