6 October 2024

How to optimize Marketing Consent Rate with Dataships

Email marketing remains a powerful tool for businesses to reach customers and drive sales. However, as privacy regulations like GDPR (General Data Protection Regulation) evolve and consumer awareness of data privacy grows, traditional methods of collecting consent are no longer sufficient. E-commerce businesses can still leverage the power of email marketing to drive sales and cultivate customer loyalty by focusing on optimizing their Marketing Consent Rate (MCR).

1. What is Marketing Consent Rate (MCR)?

MCR measures the percentage of customers who actively choose (opt-in) to receive marketing communications from a brand. MCR is calculated by dividing the number of customers who opt-in to receive marketing communications by the total number of customers who interact with your brand (e.g., visit your website or make a purchase). The formula is: MCR = (Number of Opt-ins) / (Total Number of Customers) x 100.

1.1 Why is MCR Important?

A higher MCR indicates a larger pool of potential engaged customers who are receptive to your marketing messages. This can lead to several benefits for your e-commerce business:

Increased Sales: Customers who have opted-in are more likely to open and engage with your marketing emails, potentially leading to higher click-through rates and ultimately more sales.
Improved Customer Loyalty: Regular and relevant communication fosters trust and a sense of connection with your customers, which can lead to repeat purchases and brand loyalty and higher customer lifetime value (CVL).
More Effective Marketing: MCR data allows you to segment your audience based on their opt-in preferences. This enables you to send targeted email campaigns with content that resonates with specific customer segments.

1.2 The Relation between MCR and GDPR:

The General Data Protection Regulation (GDPR) is a regulation in EU law on data privacy and security. It requires businesses to obtain explicit consent from customers before sending them marketing communications. Explicit consent is a clear and direct “yes,” like signing a form or checking a box. There’s no room for misunderstanding. Implicit consent, on the other hand, is assumed based on your actions. For example, giving your email at checkout might be seen as consenting to marketing emails. However, explicit consent is generally preferred. It avoids confusion and respects your right to choose. A high MCR demonstrates compliance with GDPR, as it shows a clear record of customers who have offered explicit consent.

2. Boosting MCR with Dataships

Dataships offers a unique approach to capturing marketing consent. Their technology uses geo-location and dynamic consent collection to tailor the process to a customer’s specific location. This ensures businesses adhere to relevant regulations, regardless of the customer’s geographical base. By prioritizing compliance, Dataships helps businesses avoid potential fines and reputational risks.

Here’s a breakdown of how it works:

Dynamic consent collection: Specifically designed for Shopify stores, Dataships’ widget prompts customers for their consent to receive marketing communications right at checkout. The ‘Opt-in’ checkbox is also location-sensitive, automatically recognizing the customer’s location and dynamically adjusting the consent options accordingly
Trusted compliance engine: Dataships provides a robust compliance engine which validates the consent collected through the widget, ensuring that it meets all legal requirements. It also creates audit-ready consent logs that serve as proof that you have obtained the proper consent from your customers.
Seamless Klaviyo integration: The integration with Klavyio ensures that all the consent information collected through the Dataships widget is automatically synced with your Klaviyo lists in real-time. This eliminates the need for manual data entry and reduces the risk of errors.
Sustained compliant growth: Data privacy regulations are constantly evolving. Dataships helps you stay ahead of the curve by continuously monitoring and maintaining the consent status of your contacts.

2.1 Before and After Dataships

To showcase the potential impact of informed consent strategies, let’s dive into a real-world example.

Serax is a Belgian design brand that collaborates with international designers to create high-quality tableware, furniture, lighting, and home accessories. Their focus on craftsmanship and natural inspiration ensures each product is a statement piece.

The brand saw a significant increase in their Marketing Consent Rate (MCR) after implementing Dataships. Serax’s MCR jumped from 9% to 69% with a growth of 737 marketable contacts, demonstrating the effectiveness of dynamic consent in lead generation.

Conclusion

MCR reflects the percentage of customers who actively choose to receive your marketing emails. This translates to a more receptive audience for your messages, potentially leading to higher sales and stronger customer loyalty.

The key lies in prioritizing informed consent. By clearly explaining the benefits of opting-in and setting expectations for communication frequency and content, you build trust with your customer base. Tools like Dataships can further empower your strategy by ensuring compliance with data privacy regulations while personalizing the consent experience. Ultimately, informed consent fosters trust, fuels your marketing efforts, and drives long-term growth for your online store.