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Presented By:
How To Use Permission
Marketing to Create More New
Clients Tah ever Before
There is a new approach to marketing that you can use successfully in your business.
Its called “permission marketing”, or “co-operation marketing”. Potentially, it can
create more new prospects and more new customers than any other marketing system
known… particularly when it is used in conjunction with the Internet as a web
marketing strategy.
This new marketing approach can be used in your business to build a bigger
client/customer base than you’ve dreamed possible.
In the past, no matter what a business sold – goods or services – the traditional
approach to marketing has been to interrupt (hopefully) well-targeted market
segments by way of an ad - a space ad, a TV or radio ad, or a salesletter ad… an
interruption ad that that came at you out of the blue with a message you weren’t
expecting and were not really that keen to see or hear.
This form of marketing has been called “interruption marketing” by Seth Godin, the
guru of “permission marketing”.
In his book Permission Marketing, Godin says:
The basic idea of this form of marketing is very simple: Each of us is born
with only a certain amount of time on this earth, and figuring out how to use it
wisely is one of life’s primary activities. ‘Paying attention’ to something –
anything – is, in fact, a conscious act requiring a conscious effort.
So, one way to sell a consumer something in the future is simply to get his or her
permission in advance. You do this by engaging the consumer in a dialogue – an
interactive relationship, with both you and the customer participating.
Rather than simply interrupting a television show with a commercial, or barging into
a consumer’s life with an unannounced phone call or letter, tomorrow’s marketer will
first try to gain the consumer’s consent to participate in the selling process.
Perhaps the consumer will give his permission, because he or she is volunteering to
learn more about a particular product or class of products. Or, perhaps you’ll
actually offer some type of payment or benefit in return for the consumer’s
permission.
OK! There you have it in a nutshell. The easiest way to understand this is to
remember back to when you were courting or being courted. Think how you sought
(or gave) more and more permission as your relationship developed! And so it is
with building a relationship with a new prospect who has given you permission to
contact him/her. You first get permission to send some promotional material along
with some material that will benefit him/her. Then you get permission to send
him/her e-mail promotional information, and other information of interest.
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Copyright © Fred Steensma
How To Use Permission MarketingTo Create More New Customers Than Ever Before
You can do this by way of an ezine (electronic newsletter). And so on. As the relationship develops, it
becomes more intimate, with maybe exchanges of e-mails of a more personal or problem-solving nature
that help him/her in his/her business activities, etc.
Why Permission Marketing?
Basically, the mass-production market has topped out. There are just too many high-quality goods and
services - all madly competing for the consumers’ dollars. Consumers are exhausted. It has been
estimated that the average consumer sees more than 3,500 marketing messages each and every single day.
That’s more than one million marketing messages a year. And don’t overlook the fact that one simple trip
to the supermarket can expose you to up to 10,000 marketing messages!
Consumers are exhausted. In most cases they are already happy with the brands they use to want
to worry about considering switching to another brand. They are too tired of advertising messages
to be bothered giving them enough time and attention to make a considered decision about what to
do about a new product or new offer. Consumers are sick and tired of the constant demands on
their attention.
But… marketers want to get their messages in front of you. They must get their messages in front
of you, just to survive… the only problem is do you, as a consumer, really want more marketing
messages?
To this end, it is essential that we move from mass marketing to interactive marketing. And it is possible
to do this now, with the new cost-efficient technologies available. Now we can actually take a step back
and ask for a customer’s permission to sell him/her things… to get him/her actually to look forward to,
and to pay attention to, our selling messages.
You and I can now ask a consumer directly if s/he would like more information… and then deliver
it. (Incredibly cheaply by e-mail).
Yes, you and I can now reward consumers for receiving and acknowledging our marketing messages if
we ensure that that consumers' own interests are being served, by giving them the chance of learning
about a new product or service that we are eventually hoping to sell to them!
Five Levels Of Permission
Seth Godin makes much of an ascending order of levels of permission. (Revisit our courtship model!)
And, in fact, any of us who have been in business for some time would realise this. As trust levels grow
between us and our longer-term customers, the permission levels do, in fact, escalate.
For example, if I own a book shop and have had a customer for a number of years who regularly buys
books on, say, the subject of the pyramids, I would ask that person if I could have his/her permission to
put aside books on this subject for his/her inspection as they become available. I would most likely be
given a “Yes, please do that… thank you.”
Just so we can benefit from using increasing levels of permission, Godin lists the following five levels of
permission in order of importance:
Intravenous (and purchase-on-approval model)
Points (liability-and-chance model)
Personal relationships
Brand trust
Situation
Page 2 of 6
Better Business Group Ltd
Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 +61 412-667 559– Email: [email protected]
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ +64 4 5266 880 - Email: [email protected]
How To Use Permission MarketingTo Create More New Customers Than Ever Before
The highest level of permission refers to situations where a customer has given his supplier indefinite
permission to keep supplying him with something. For example, the business that supplies refills for
drinking water dispensers in homes and offices just keeps that water coming and billing you for it as it
delivers it.
It is interesting to note that Godin says the idea of automatic replenishment can be extended in more ways
as technology makes it easier to execute these systems. Virtually every product, therefore, can be sold by
subscription! (Can you apply this principle in your business?)
The next level of permission is points. Points are a formalised, scalable approach to attracting and
keeping a prospect’s attention. Remember the use of stamps to build loyalty. Well, this is an example of
this level of permission. Frequent-flyer points are the most common technique used at this level of
permission today. And this concept can be used across many different businesses. However, the cost of
each point to you should be as near to zero as possible, but be perceived as having a high value to your
customers.
The third level of permission is personal relationships. Using the relationship you have with an individual
is an extremely effective way to temporarily refocus his/her attention or modify his/her behaviour.
It is essential for a business to recognise, and use, the power of the permission that exists in developing
personal relationships. The trust that develops here is what is important. Remember that personal
permission is the single most powerful lever that you can have for making major shifts in a consumer’s
behaviour. Plus, it is the single easiest way to move someone to an intravenous level of permission.
Much lower down the permission list is brand trust. It is dramatically overrated. And, by the way, brand
trust is extraordinarily expensive these days to create. However, brand trust does lead to brand
extensions. When the new product from a trusted brand is good, that can lead to an enhancement of the
permission. But a brand extension that fails can do significant harm to brand trust. Once the marketer
abuses the permission granted by the consumer, the consumer is in no mood to be abused again.
The lowest level of permission is situational permission. Usually preceded by the question, “May I help
you?” When a consumer calls a toll-free number for help s/he has given situational permission. When
you stop to ask for directions, or when you ask a store clerk for advice on a gift, or when you buy just
about anything from anyone, you’ve given situational permission.
It is worthwhile taking the time to look closely at just what levels of permission are you being granted by
your customers. And then you need to look at how you can protect those levels of permission, and how
you can actually seek increasing levels of permission from your customers.
Enter The Internet
The Internet has been described as the biggest direct marketing mail machine ever invented. And it is this
new technology - with its killer application, e-mail, inked to faxes, phones and computers - that has really
made…
Permission marketing possible … and imperative
You see, what direct mail marketers have always done (at great printing and mail costs) can now be done
for next to nothing by using the web and e-mail. What they have done is to build up one-on-one
relationships based on an original granting of permission to do so by their customers. And it is significant
that Seth Godin is the first-ever marketing guru whose whole marketing experience has been almost
totally on the Internet. (He is currently Vice-President for Marketing at Yahoo.)
Page 3 of 6
Better Business Group Ltd
Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 +61 412-667 559– Email: [email protected]
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ +64 4 5266 880 - Email: [email protected]
How To Use Permission MarketingTo Create More New Customers Than Ever Before
So, the classic permission marketing technique, as developed for the Internet, consists of having prospects
visit your web site. And then, while visiting your site, voluntarily requesting that they go on your e-mail
data base. They do this to receive both free beneficial information as well as marketing information from
you until such time as they ask to be taken off your e-mail list. Booksellers www.amazon.com is probably
the best-known permission marketer in the world at this time. And they have used precisely this
technique. You can use this same technique to market by your own web site. But how can you use
permission marketing outside of the web?
Using Permission Marketing In Your Business
You really do need a computer capable of handling a database to start using permission marketing
successfully. But that’s about all.
Let’s look at some examples:
A gardening supplies and nursery business:
Say you own a gardening supplies and nursery business. The first level of permission you could ask for is
permission to include customers on your mailing list.
You could, of course, run some form of
“interruption” ads – space ads in your local paper, or radio commercials that offer prospects a free
planting guide or some such if they contact you and give you their addresses. Or, you could use
interruption marketing to promote a “field day” at your nursery at which you demonstrate a wide range of
new plants, fertilisers, cultivators, etc. and then ask attendees for their permission to go on your mailing
list.
The second level of permission you could seek might be asking your customers for details of particular
plants they want, plus their e-mail address/phone number so you can notify them quickly when stocks of
particular plants that they are particularly interested in getting become available. The third level of
permission might be to ask them if you can to hold details of their credit cards, and bill them
automatically for particular products, such as fertilisers, on a monthly or three-monthly basis, as you have
them delivered in a prearranged quantity.
A restaurant:
Permission marketing can be used very successfully in the restaurant business. As more and more
customers have access to e-mail (either at work or at home), it would be well worthwhile a restaurateur
collecting both phone and e-mail details from all of his/her local customers. It would also be worthwhile
collecting addresses at the same time. Permission could be sought to get these details so that customers
could be contacted from time to time about special offers, sent recipes occasionally, informed of special
events such as an Asian Food night, family discount dine-out offer, or an Enjoy A Meal From The 50s
night, etc.
If your customers like and enjoy your restaurant, why not give them reasons for coming more often? You
might even set up a “frequent-diners out” club, like a “frequent flyers” club, with benefits such as points
for meals bought adding up toward a bottle of French Champagne, or a free dinner, or some such. But, of
course, you have to get your customer’s permission to put them into such a program. Once in the
program, they can be contacted with updates as to how many points they have toward their prize, etc.
And with this comes more special offers to “club” members!
A service station:
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Better Business Group Ltd
Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 +61 412-667 559– Email: [email protected]
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ +64 4 5266 880 - Email: [email protected]
How To Use Permission MarketingTo Create More New Customers Than Ever Before
You may wonder how even a humble service station could use permission marketing. If you owned one,
you could run interruption ads to ask people in your area if they wanted to be told when there was
discount “services” or discount mechanical work available.
One local garage owner on Queensland's Gold Coast is already doing this. He asks clients if he can have
their phone and e-mail details, and when work volume is down he e-mails or phones customers offering
them 10% off the normal cost of a service or mechanical work for a limited time period. In this way he
manages to maintain the volume of work he needs to keep his four mechanics busy.
A local insurance agency:
Once again, this business asks permission to e-mail or mail out a regular newsletter on aspects of
insurance of interest to its potential market. A relationship is built up through these contacts. Prospects
are specifically told that they can ask individual questions or have their own existing insurance cover
reviewed free of charge. Recommendations are then made to them on the basis of this review. And
business is generated. Referrals are sought and permission is obtained from these referrals where
possible, to be put on the business’e-mailing or mailing list. And so it goes on.
The basis of permission marketing is an offer made to a consumer to volunteer to be marketed to. By
talking only to volunteers, permission marketing guarantees that consumers pay more attention to the
marketing message. It allows marketers to tell their story calmly and succinctly without fear of being
interrupted by competitors or interruption marketers. This form of marketing serves both you and your
prospects and customers, because it is a two-way exchange based on increasing mutual trust. As in
courtship!
Permission marketing, claims Seth Godin, encourages consumers to participate in a long-term,
interactive marketing campaign in which they are rewarded in some way for paying attention to
increasingly relevant messages.
Imagine your marketing message being read by 70% of the prospects you send it to. (Not 5% or even
1%.) Then imagine that more than 35% respond. This is what you can expect to happen when you (i)
interact with your prospects one at a time, (ii) use individual messages and, (iii) only exchange these with
their permission over a period of time.
Permission marketing is anticipated, personal and relevant
Anticipated – people look forward to hearing from you.
Personal – the messages are directly related to the individual.
Relevant – the marketing is about something the prospect is interested in.
Your Permission Marketing Workshop
To help you see how you can introduce this form of marketing into your business here is a list of
questions to help you focus on just how it can work for you.
Offering A Benefit To Prospects Who Volunteer To Be Marketed To
What benefit/s (information/service?) can I provide to get prospects' permission to allow me to market
to them?
What are the main areas of interest (information) relevant to my prospects?
Do I have this information now. If not, where can I get it?
How will I provide my prospects with this information - by e-mail, by letter, by phone, by free
periodical newsletter?
Page 5 of 6
Better Business Group Ltd
Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 +61 412-667 559– Email: [email protected]
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ +64 4 5266 880 - Email: [email protected]
How To Use Permission MarketingTo Create More New Customers Than Ever Before
What training/selling materials can I provide with this that will eventually lead to these prospects
becoming customers and purchasing my goods and/or services.
Getting permission
How am I going to get permission?
Will I be seeking to get permission from existing customers or from prospects? (From both?) Will
these permissions be the same or different?
What different levels of permission can I seek as the relationship grows?
What can I do to ensure that I build a strong element of trust into the relationship?
What do I need to teach my permission granters so that I will lead them to becoming committed,
ongoing customers?
How can I delight them, or reward them, throughout the process for granting me permission to market
to them?
How can I reinforce the incentive/s I have given to guarantee that my prospect maintains the
permission?
What even deeper permission can I get?
How can I use these permissions over time to change the consumers' behaviour so that I can increase my
profits?
Page 6 of 6
Better Business Group Ltd
Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 +61 412-667 559– Email: [email protected]
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ +64 4 5266 880 - Email: [email protected]