With modern online marketing techniques heavily focused on areas such as social media advertising, influencer marketing, viral trends, search engine optimisation etc., a tool somewhat closer to home may only sometimes get the headlines it deserves. 

Your customer database possesses immense potential as a secret weapon capable of driving sales and fostering customer engagement. However, it's crucial to ensure compliance with the laws for GDPR post-Brexit to protect your customers' privacy.

In this article, we delve into the reasons why customer databases and email marketing should not be underestimated in your business growth plans. 

We also explore the pertinent legal considerations you need to keep in mind, empowering you to unlock the full potential of your customer base while safeguarding their trust.

Why should I maintain a customer database?

William Wordsworth once famously said, “Life is divided into three terms - that which was, which is, and which will be. Let us learn from the past to profit from the present and from the present to live better in the future.” Although he probably did not intend it at the time, we can now apply these wise words in the context of database marketing! 

The great thing about your customer database is that it represents real customers that have either bought from you in the past or registered an interest in your products or services. 

These are not theoretical target demographic groups; they’re real people with names, addresses, emails and order history. 

As such, their value to you should be magnified. By learning from previous purchases, you can form a clearer picture of who is buying from you, where they’re located, how often they purchase and their typical order value.

However, in processing customer data, you must ensure compliance with all relevant data protection laws, including the Data Protection 2018 and the UK General Data Protection Regulations (UK GDPR) and the UK GDPR rules relating to consent. 

You must also have a privacy policy in place on your website if you’re handling customers’ personal data. This will cover how you’ll collect, process, store and transfer their personal data and also detail the customer’s rights. These rights include a right to access, correction and erasure of their own personal data.

Why are customer databases sometimes overlooked?

It can be tempting for businesses to focus heavily on new customers whilst losing sight of the value in existing or previous customers. 

This may be due to naivety; perhaps small business owners think customer loyalty can be simply assumed. Even if this may have once been the case, it certainly is no longer the case. 

Why is email marketing so useful?

Your business can be easily ignored despite a constant barrage of advertising and marketing messages. In most industries, the modern-day consumer can be routinely overwhelmed and is often spoilt for choice. 

It’s your job as a growing business owner to appeal to new and existing customers. You have to make your products or services stand out from the crowd. 

A great way of doing this is via email marketing to keep in contact with your customers. It can be done via regular newsletters to boost general engagement and interest or via more direct sales emails to actively market your products or services, automated email sequences, etc. 

To ensure compliance with the UK GDPR law, it’s essential to verify that the contacts in your marketing database have explicitly consented to receiving your communications.

Are there any legal issues to consider with email marketing?

Effective email marketing requires careful consideration of legal issues to ensure compliance. One crucial concern revolves around customer consent. It’s imperative not to send marketing emails to individuals unless they have explicitly consented to receiving such communications. 

Furthermore, you must provide an easily accessible opt-out option for recipients in both the initial collection of their information and each subsequent email sent.

If your target audience comprises consumers, additional compliance is necessary under the Consumer Protection from Unfair Trading Regulations 2008. These regulations aim to prevent unfair sales practices, safeguarding consumers from deceptive marketing tactics that create false urgency or manipulate them into making purchases under pressure.

If your target audience consists of businesses, you need to adhere to The Business Protection From Misleading Marketing Regulations 2008. Similar to the consumer regulations, these rules prohibit misleading marketing and advertising messages directed towards businesses.

Given the severe penalties for non-compliance, it’s strongly advised to seek appropriate legal counsel to ensure that your marketing strategies align with legal requirements.

Wrapping up

While modern marketing strategies often steal the spotlight, maintaining a customer database and email marketing can significantly contribute to sales generation and customer engagement. 

However, it's vital to process customer data in compliance with data protection laws like the Data Protection 2018 and UK GDPR. Consent plays a crucial role, and a transparent privacy policy is necessary to outline data collection, processing, storage, and customer rights.

If you would like advice and support regarding the legal issues around customer database marketing and GDPR, you should contact a commercial lawyer with appropriate expertise.

LawBite lawyers can provide expert GDPR legal advice to your business to ensure that your documents, including your websites and contacts, are appropriate and robust.