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Permission Marketing: Definition, Strengths and Disadvantages

In the world of marketing, there are different types of marketing strategies that businesses can apply. Among the different types of marketing strategies and marketing plans, the one you need to consider is permission marketing.

As the name suggests, the concept of this marketing strategy is to approach prospects (prospects) based on their permission. According to Marketing Insider Group, this marketing concept is capable of increasing lead conversion as well as the profitability of lead management and prospecting processes.

Indeed, companies can acquire qualified and potential leads to become loyal customers, which increases the redemption rate. However, this marketing strategy also has a number of disadvantages if the company cannot implement it optimally.

So, what is the concept of this marketing strategy?

What is authorization marketing?

According to HubSpot, authorization marketing is a marketing concept centered on obtaining the customer’s permission before offering something.

This concept of marketing first appeared in 1999. Seth Godin, one of the marketing and business experts, was the first to explain this concept through his book titled “Permission Marketing: Turning Strangers into Friends and Friends into Customers”.

The concept of this marketing strategy is different from the mode of marketing in general. Where typically the marketing team will do marketing without needing permission from the target market first. Even so, this method is quite effective in increasing customer trust (brand authority) and attracting quality leads.

Because potential customers have the freedom to choose and marketers should not be constrained to conduct promotional strategies. So, potential customers will feel much more comfortable when marketers offer offers, promotions, etc.

An example of this marketing strategy is a subscription.

Many brands today offer a subscription option. For example, brands that implement product-driven growth as the spearhead of their sales process. Thus, customers can feel the value and comfort of the product while using the product before deciding to use it continuously.

Another example is when you sign up to subscribe to a brand’s newsletter. After deciding to sign up, you will receive marketing emails containing promotions, discount information, seasonal product offers, and more.

Forms of permission marketing are email marketing, chatbot marketing, web push notifications, and even SMS marketing.

Meanwhile, according to Investopedia, the concept of permission marketing is often seen as the opposite of direct marketing and personal selling. Because, as we know, marketers usually make offers immediately as part of the direct marketing process like this. Sometimes they even do aggressive selling, which seems to force consumers.

Benefits of permission marketing in the marketing process

As explained above, this marketing concept is basically useful for capturing quality leads. Because if consumers authorize marketers to make offers, it means that they have expressed an interest in your product/service.

For more details, here are some of the benefits you can get by applying permission marketing:

1. More qualified leads

The first benefit, of course, is getting higher quality leads. Because when a person wants to get information and knowledge about a product or service, it means they have an interest in the product.

This means that the customer engagement opportunity can be higher and the conversion rate can be higher. These people are what we call high-quality leads.

2. The marketing process becomes easier

If someone has expressed interest in the offer, the marketing process will of course go more easily and smoothly, right?

Because indirectly, by first asking permission before marketing, you have then qualified and segmented the target market. This will make it easier for you to set up a marketing campaign strategy as well as sales methods and approaches.

3. Reduction of marketing costs

The next advantage is the use of marketing costs which tend to be cheaper. Imagine, you will be marketing to quality leads, so the possibility of lead conversion is also high. In other words, they have a great opportunity to make a purchase.

In this way, this strategy will certainly be more effective and can reduce expenses rather than doing the marketing process on the wrong tracks.

4. Increase customer loyalty

The next advantage is that it can increase the number of loyal customers (customer retention). Because with permission marketing, potential customers will have a positive impression of your brand (brand image). Thus, your brand reputation for them will be very good.

As a result, the number of rejections will also decrease, with increased sales growth. Because in truth, the better your marketing strategy, the more positive your brand image is in the eyes of customers. This way, it will be easier for customers to engage and be interested in making repeat purchases and even becoming repeat customers.

Disadvantages of permission marketing in the marketing process

Although it has many advantages, this does not mean that this strategy does not have weaknesses. Some of the things that can be a downside to permission marketing are:

1. Fewer leads

Getting approval from potential customers to make an offer is not easy. Therefore, don’t be surprised if you will get fewer leads than other marketing strategies, even if the leads are of high quality.

However, with good lead quality, long-term marketing prospects will be more assured.

We can therefore conclude that this strategy is suitable for companies that prioritize success and long-term customer retention (customer retention). Instead of companies that tend to want to target as many prospects as possible.

2. The marketing process tends to take longer

The second weakness is the marketing process which tends to take longer. The reason for this is that getting the attention of potential customers and getting permission to make an offer is not something you can do instantly. You cannot simply show the superiority of your product, or even compare it to that of your competitors like other marketing campaigns.

Even so, the possibility of increasing conversion rates will be higher and marketing costs will be minimal. Thus, this strategy is the right choice for companies that prioritize lead quality and marketing profitability.

This is a review of permission marketing and its pros and cons. Generally speaking, this marketing strategy is a more effective marketing concept but generates higher profits.

Besides, permission marketing can also be one of the effective relationship marketing strategies to establish interaction between businesses and customers. Thus, when the company launches a product or makes a new offer, sales will be easier and more.

In addition to permission marketing, there are various other marketing strategies you can apply. Moreover, you can also use the services of a digital marketing agency to help you grow your business. Some of the marketing strategies that can be implemented are growth hack marketing, inbound marketing, 360 digital marketing and data driven marketing so that the business can grow rapidly.