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Why Outdoor Recreation Marketers Should Move Quickly to Build Customer Databases Amidst Rising Privacy Concerns

By Parker Stoner – Senior Vice President, Director of Database Marketing

Privacy has become one of the most significant marketing issues and is likely to be an even bigger concern in the future. As consumers become more aware that their own personal data is commonly available and routinely sold by companies, they are worrying and complaining more. Congress, the Federal Trade Commission and other units of the government have been holding various hearings and workshops on the subject of privacy. The government seems ready to take action to address consumer concerns. The only question is how severe will these actions be.

There is little doubt that some laws will be enacted restricting the selling or sharing of some types of consumer data between companies. The restrictions could be in terms of forbidding selling/sharing certain types of data such as financial information. Another possibility is that each consumer will have to grant permission for a company to sell/share any data with another company.

Restrictions could go even further. Some European nations have strong laws in place that not only make it illegal for companies to share data, but prevent companies from gathering certain types of consumer data at all. Depending upon how loudly United States consumers complain, it is possible that such laws could be enacted here.

Surveys indicate a majority of consumers favor strict laws that prohibit companies from collecting or using data for marketing purposes. Many people do not understand that such laws might prevent them from receiving certain desirable mailings such as catalogs. Nevertheless, many consumers still favor such strict laws even when told they might not receive some items they enjoy. It is important to keep in mind that many outdoor recreation enthusiasts, especially firearm owners, tend to be even more sensitive regarding privacy than average consumers.

It is difficult to know what privacy legislation will be enacted and how severe it will be. Outdoor recreation marketers would be smart to quickly build customer and prospect marketing databases before such activities are restricted, made more difficult or possibly outlawed. Chances are legislation might restrict certain activities in the future, but would not prevent companies from using information already gathered. One other possibility is that companies may be required to compensate consumers and/or receive special permission from them to collect and maintain personal data. This could make building a good marketing database much more difficult or more expensive.

A good marketing database is of such tremendous value to marketers that those companies with good databases have a huge potential competitive advantage over those who do not. Depending upon what privacy legislation is enacted, some outdoor recreation companies may find they have an irreversible advantage or disadvantage compared to competitors depending upon who has a database. This is another reason for companies to move quickly to build or upgrade their databases.

Here are some actions we recommend outdoor recreation companies take regarding marketing databases to react to the increasing privacy concerns and in preparation for possible restrictive legislation:

1. Begin building or enhancing your company’s marketing database. This is a project that takes a lot of time including considerable up-front planning. Do not wait and then expect to get it done in a couple of months. Having a good marketing database will give your company a huge competitive advantage even if severe privacy restrictions are not enacted.
2. Become a “privacy conscious” company and let your customers and prospects know it. Ask people only for information that will help you to better meet their needs and interests. Protect their privacy by closely guarding the information they give you. Do not sell or share the data with other companies or organizations. The few dollars you can generate from renting your customer list is minor compared to the loss of business you may incur from angered customers.
3. Tie your database building efforts to legitimate customer benefits. For example, maintaining a warranty or product registration database has more legitimacy than simply compiling data for non-specific marketing purposes. Likewise, a database used to maintain a membership club roster or a list of people who receive a company magazine is founded on a specific customer benefit.
4. Explain to customers and prospects why you are asking them for information. Tell them, as best you can, how the data will be used to benefit them.
5. If you already have a marketing database, examine your market situation and needs to see if there is any important customer information you would like to have. C onsider actions to collect this additional data while it is still possible or before it becomes more difficult or expensive to do so.

Privacy is a topic that outdoor recreation companies will need to deal with in the coming years regardless of what legislation is enacted. Privacy is fast becoming a defining issue when it comes to consumer perceptions of companies. It could be that consumers will decide whether to do business with your company as much on its privacy policies as on the quality of its products. Consumers may divide companies into two categories: those they can trust to respect their privacy and those they cannot trust. Move to build or upgrade your marketing database now and make certain your company is perceived to be among the companies that consumers trust.

I welcome your comments or questions regarding this article or interactive marketing in general. Call me at (402) 437-6458 or send e-mail to parkers@swansonrussell.com.

Swanson Russell can help you build a marketing database and use it in an effective, but privacy conscious, manner. See Database Marketing for a more detailed explanation of database marketing and a description of Swanson Russell's database marketing communications services.

Call Steve Russell at (402) 437-6400 or send e-mail to outdoors@swansonrussell.com to discuss how your company can use our interactive marketing communications services or any of our other services for companies in the outdoor recreation industry.