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How the GDPR Is Affecting Email Marketing

Adam Uzialko
Adam Uzialko
Editor
Business News Daily Staff
Updated Aug 05, 2022

The GDPR covers all personal data from users within the EU. By investing in your email marketing campaigns and following regulations, you should see an increase in click-through rates and engagement.

  • The General Data Protection Regulation is a set of standards that cover all personal data generated by users within the European Union.
  • Compliance with the GDPR will not only save you from fines, but also retain more of your subscribers.
  • By investing in your compliance efforts and reviewing your email marketing campaigns, you should see an increase in click-through rates and engagement.
  • This article is for new business owners trying to improve their email marketing efforts in compliance with data privacy laws like the GDPR.

The European Union’s General Data Protection Regulation (GDPR) is a sweeping data privacy law that unifies the data privacy regulations of all EU member states. Under the previous standard – the Data Protection Directive – each member state had its own data privacy laws governing the collection, analysis, usage and storage of users’ personal data.

The goal of the GDPR is to better protect the personal data of EU citizens. For companies that rely on email marketing campaigns, the law means adjusting your strategy to comply with the GDPR. Here’s how you can do that while maintaining success in your marketing campaigns.

How has the GDPR impacted marketing strategies?

The GDPR is, at its core, about data protection. It includes provisions that empower users (“data subjects” in the text of the law) when it comes to the collection and handling of their own data. 

Among these provisions are the right to consent to data collection, the right to understand how and why that data is being used, and the right to request the deletion of that data under certain circumstances. It also includes provisions requiring the timely reporting of any data breach, along with a full accounting of which personal data might have been compromised.

While these provisions sound straightforward, implementing the structural changes necessary to meet GDPR requirements was a monumental task for many companies, especially those in the U.S., where data privacy rules are significantly looser than in the EU.

Marketing departments were forced to pay particularly close attention to the GDPR. There is no avoiding the effects of GDPR requirements on digital marketing efforts, especially email marketing campaigns and email lists.

“All marketing activities are likely to be affected by the GDPR in one way or another. That much is obvious,” said Oksana Chyketa, product marketing manager at Newoldstamp. “That said, we see [the] GDPR having an exceptionally large impact when it comes to email marketing.”

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What does the GDPR mean for email marketing?

Email marketing is a common advertising tactic that has been easy to implement in the past. But after the GDPR, it’s another area of business that requires careful consideration.

For instance, companies need to ensure that their contacts provide explicit consent before continuing to send emails to them. This calls for a stricter subscription process, which should involve a double opt-in and easy opt-out feature and exclude involuntary or required opt-ins.

A double opt-in confirms that users are interested in receiving emails, weeding out any fraudulent or accidental requests (for example, a user’s failure to uncheck an automatically checked subscription box). If a consumer provides their email address for a subscription, they will have to go into their email and agree to it for a second time.

The double opt-in requirement acts as a safety net for any business sending promotional emails. Anyone subscribing to your emails should be able to do so freely and not feel bribed to do so for a particular product or service. They should also be able to unsubscribe from your email list at any time with no repercussions.

Key TakeawayFYI: The best email marketing software includes tools to help you track your compliance with laws like the GDPR and the California Consumer Privacy Act.

How can you profile data under the GDPR to send personalized and targeted emails?

The GDPR specifies two entities: a data controller and a data processor. The data controller is responsible for determining the purpose and means of personal data processing; this is usually a company collecting personal data for some business application. The data processor is the entity that conducts the actual analysis of that data. In some cases, this is a single business, but in most cases, it involves the use of third-party service providers in conjunction with a business.

As a data controller, you are responsible for the actions of any data processors you work with. In other words, if a third-party service provider you use suffers a data breach or otherwise runs afoul of GDPR requirements, you could be on the hook. However, GDPR regulations offer an opportunity to conduct a full data audit to ensure you are compliant and to help you organize personal data more effectively for your email marketing campaigns.

“Organize a full information audit and review the existing data you have, paying particular attention to where this data came from and who you’re sharing it with,” said Chyketa. “If you’ve been marketing to an email list that you obtained using methods that are noncompliant [with the] GDPR, you should no longer reach out to individuals on this list, unless they’ve double-opted in to your communications.”

The GDPR’s effect on engagement and click-through rates

While becoming and remaining compliant with the GDPR is a major challenge, there are silver linings. By ensuring your email marketing campaigns target only the users who expressed interest through a double opt-in and offered their explicit consent, you should see an increase in click-through rates and engagement.

TipTip: Determine the effectiveness of your campaigns by measuring email marketing metrics such as your open rates, click-through rates and unsubscribes.

Data from digital marketing company Acoustic, which was formerly part of IBM, shows that the GDPR is already having a positive impact on engagement. The company’s 2021 Email Matters report examined the marketing data of thousands of brands across 40 countries. Among other results, the report found that email open rates and click-through rates were at their highest during the start of the pandemic and increased over 5% in some months. This trend is a continuation of increases seen since the adoption of data privacy laws like the GDPR.

“Marketers were initially skeptical of privacy and data regulations like [the] GDPR in the U.K. and [anti-spam legislation] in Canada, since they restrict how brands may gain access to and use customer data,” said Loren McDonald, electric vehicle analyst and consultant at EVAdoption, in a statement. “But our data shows that these regulations are actually improving results by driving change within marketing organizations, many of which are becoming more focused on consumer trust and the customer experience. In addition to improving permission and data management practices, brands are increasingly using AI to personalize emails, dissect and analyze big data, and detect when campaigns aren’t performing well.”

While the GDPR is definitely a major change for many companies, the work involved in maintaining compliance can be worth it not just for regulatory reasons, but for business reasons as well. After all, digital marketing works best when the audience you reach is actually interested in your products and services. Disinterested users amount to wasted marketing dollars.

Transparency in email marketing campaigns

Your marketing efforts should be transparent to your consumers. Outline exactly what data you’re recording and what you plan to do with it. Anytime there is an update to your privacy policy, alert your contacts and offer them a way to unsubscribe. Many consumers opt out when faced with a privacy policy update, but it’s better to send messages tailored to your customers than a generic advertisement to a broad audience. So, if you want to recruit and retain contacts, you need to know how to engage them.

“I think the one thing we’re likely to see is that brands may see an increase in unsubscribes and/or requests for deletion,” said Jennifer Horner, senior director of relationship marketing strategy at Merkle. “I feel that when presented with a privacy policy update … customers either ignore the email or, if they’re not highly engaged with the brand, take that message as an opportunity to unsubscribe from the emails.”

Horner added that consumers now expect personalized communication and that companies should leverage their data to customize messages and advertisements. That way, the contacts you have will be satisfied enough to stay subscribed.

Data privacy rules are critical for marketers

As data privacy regulations become more prevalent, people want their personal information safe, secure and away from scammers. Email providers are doing their best to filter out the spam, but there is a silver lining. The effort and due diligence you put forth will pay off with your clients returning to your business. After all, digital marketing proves effective when your target audience is actually interested in your products and services. Our best advice is to get ahead of the problem and hire some help. Communicating and having the tools necessary is always a great way to battle a problem. 

Elizabeth Veras and Sammi Caramela contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

Image Credit:

undrey / Getty Images

Adam Uzialko
Adam Uzialko
Business News Daily Staff
Adam Uzialko is a writer and editor at business.com and Business News Daily. He has 7 years of professional experience with a focus on small businesses and startups. He has covered topics including digital marketing, SEO, business communications, and public policy. He has also written about emerging technologies and their intersection with business, including artificial intelligence, the Internet of Things, and blockchain.