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Building Compliance into the Email Profit Center Linda Goodman, Esq. The Goodman Law Firm James O’Brien LashBack Sal Tri PowerPoint Presentation
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Building Compliance into the Email Profit Center Linda Goodman, Esq. The Goodman Law Firm James O’Brien LashBack Sal Tri

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Building Compliance into the Email Profit Center Linda Goodman, Esq. The Goodman Law Firm James O’Brien LashBack Sal Tri

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  1. Building Compliance into the Email Profit Center Linda Goodman, Esq. The Goodman Law Firm James O’Brien LashBack Sal Tripi Publishers Clearing House Dianna Koltz, CIPP Memolink | CPA Storm

  2. Compliance Legal Update, Process Overview &Case Studies Linda Goodman, Esq. Principal The Goodman Law Firm

  3. Current Legal Climate • 2008 Increase in State AG activity • Q4 2008 more FTC activity than ever before • 2009 Obama Administration • Increase Consumer Protection • Increase Regulatory Enforcement

  4. Legal Process • Compliance Process Recommendations • Case Studies and Precedent

  5. Email Compliance Reality:Impacts Email Reputation, Deliverability and Profit James O’Brien Director of Marketing LashBack Global Email Compliance

  6. Email Myths and Reality • Myth: Compliance Takes Too Much Time and Is Too Costly. • Reality: See The Ten Guidelines to CAN-SPAM Compliance Handout • Myth: Compliance = Cost Center • Mission: Email Compliance = Quality Control and Email Profit

  7. Email Myths and Reality • Myth: CAN-SPAM to reduce volume of “email” consumers receive • Reality: 90% of all email is junk data, not legitimate commercial email • Myth: CAN-SPAM focuses on consumer legal action • Reality: CAN-SPAM is for legitimate ISPs and Gov’t regulators • Reality: Relevance trumps permission • Myth: CAN-SPAM is Ineffective • Over 100 Prosecutions & Administrative Settlements • More Than Any Other Email Regulation • Enforcement of a “weak” law is better than little or no enforcement of a “strict” law.

  8. What is the “90% of all email is spam” myth? • Email needs a better definition of “spam”. • The huge majority of “spam” is a torrent of junk data. • Almost 50% comes from a source which should not send email. • Another 34% is from “unknown” sources- both hard to measure because much is blocked.

  9. What Email Do You Really Compete Against? • Tons of Bad Email Gets Delivered. • Very Little Email is “Filtered” • Most Compliant Commercial Email Gets Delivered • Legitimate Commercial Email Is a Smaller Percentage of Total Data Delivered Than Anyone Perceives- It is one basis for its high value and ROI.

  10. CAN-SPAM Legislative Intent • Right to Send vs. Right to Receive - “With rights come responsibility” - Email Must Self-Regulate (Learn How Today!) • Consumer Opt-Out is All • Transparency- Clear Ownership/Accurate Contact Information or Permission - Sending IPs, Domains, Physical Address • Obligation to Monitor and Resolve Issues in a Timely Manner - Collaborative Compliance- shared liability - Collaborative Commerce- shared reputation • No Deception- The “reasonable consumer” test • Create an email marketplace by creating basic standards for email and rules for sending behavior

  11. Advanced Compliance • Collaborative Compliancy • Collaborative Reputation Management • Internal Policy and Best Practice Compliance • Contract Enforcement • New Rules of CAN-SPAM

  12. Collaborative Compliance--The Obligation to Monitor--The Opportunity to Enforce Quality Control Federal Register Vol. 70, No. 91/ Thursday May 12 2005/ Proposed Rules. Page 25,431 (not a typo) Section (2) entitled "Sender Liability for Practices of Affiliates or Other Similar Entities" : “[the FTC] has specifically held sellers liable for the actions of third party representatives if those sellers have failed to adequately monitor the activities of such third parties and have neglected to take corrective action when those parties fail to comply with the law.”

  13. Who is liable? • US Advertiser (sender) - UK Publisher • Commercial Email? • Who profits? • Is it your offer? • Who clicks the send button? • Follow the money. • Email Compliance and Reputation is a Collaborative Exercise in the Email Eco-System.

  14. Three Types of CAN-SPAM Compliance

  15. Compliance Benefits • Decrease Liability • Public and private • Identify fraud and brand abuse • Compliance process weighs heavily under legal scrutiny • Reduce legal costs when problems arise • Protect Reputation • Deciding factor for inbox delivery • Deciding factor in who works with you • Increase brand equity • Increase Deliverability • Compliant email is first hurdle for delivery • Identify failures or human error quickly • Actionable feedback data improves future campaigns • Increase Profit • Repel “Spambulance “ Chasers with Confidence • When email gets delivered it impacts not only gross revenue but profit per campaign

  16. Beyond Compliance 101 Enforce Internal Corporate Guidelines and Best Practices Guidance: Many online marketers implement custom controls which go beyond CAN-SPAM requirements to enforce their own corporate policies, procedures and Contracts with third parties. Custom Best Practices: • Use of Specific, Pre-Approved Subject Lines • Monitor for Vertical Compliance Specific Rules: finance, education, health • Quality Control: Link Functionalty/Accuracy, Positive/Negative Traffic • Frequency and Volume Caps for Sending- ListMonitor • Email Brand Usage Monitoring- BrandAlert • Enforcement of Exclusivity- LM/BA/AL

  17. Compliance Impacts Reputation • Consumers and receivers Report Key Metrics to Centralized Data System • Data Linked to Sending IP • and Domain • Marketers Use FeedBack • to Improve Sending • Practices Marketers Consume FeedBack ISPs and Receivers Consume Reputation Data for Delivery Decisions

  18. Compliance Best Practices • Closely Tied to Email Performance Best Practices • Unsubscribe Most Impacts Reputation and Certification (UnsubScore/Sender Score) • Sending/Data Compliance Problems Will Get You Blocked or Filtered • Content Issues Decrease Response Most and Increase Legal Problems

  19. Email ComplianceThe PCH Way Sal Tripi Director of Operations and Compliance

  20. Traditional View Obstacle Sales Prevention Growth Inhibitor

  21. Using Compliance to: • Increase Sales • Grow/Foster Profitable Business Relationships • Protect Brand • Improve Campaign Level Metrics = Increased Conversions

  22. The PCH Brand • Brand Protection is Crucial For Future Success • Leveraging The PCH Brand With Valued Advertisers And Partner

  23. The PCH Brand • Yes!We really do give away all that money • Over 50 Years • PCH is Sweepstakes • One of America’s most well-knownbrands. • TRUSTED • No!You do not have to order to win.

  24. It effects email delivery It effects us as well as business partners Legal implications of not having one Why Have a Compliance Policy?

  25. Acquisition Efforts • Opt in Practices • Segmentation • Targeting • Bounce Management • Delivery Monitoring • ISP Relations • Frequency • Advertisers

  26. Your Sending Reputation Acquisition Methods and Partners Advertisers A Comprehensive Compliance Program

  27. Authentication Lets the ISP’s know who the sender of the mail is. Domain Keys or DKIM – Yahoo SPF – AOL Sender ID – MSN/Hotmail It’s easy to have all 3 It all starts with Infrastructure

  28. ~ 77% of Delivery Issues result from Sender Reputation issues Sender Reputation

  29. Complaint Rate How often people hit the Report Spam button as a percentage of total mailed. Volume How much mail is being sent. Address Hygiene Invalid or non-existent accounts Impacts on Sender Reputation

  30. Spam Trap Hits Spam Traps are either old abandoned email addresses used by ISP’s and Blocklists to trap spammers. Blocklists Blocklists are 3rd party providers of data that ISP’s used to evaluate the legitimacy of senders. Impacts on Sender Reputation

  31. Before you can manage your reputation you must first know your reputation.

  32. Tools

  33. Two types of Monitoring ESP’s provided delivery stats Delivery based on absence of bounce message Key Metric – but not the full story No indication of Inbox/Bulk Seed Program Inbox/Bulk and Missing To truly understand delivery mailers should evaluate both Delivery Monitoring

  34. Campaign Level Monitoring

  35. Spam Filter Review

  36. Rendering Impacts Complaints

  37. How are you growing your lists? 3rd Party emails Banners List Rental Acquisition Partners

  38. Advertisers an be viewed as the sender of the email Sender is responsible for Can Spam compliance Penalties for violation– up to $250 per address. Am I Really Responsible for 3rd Party’s

  39. Typical Acquisition Efforts Email Banners

  40. ? What Could Go Wrong

  41. Emails Sent to suspect lists Scripts inject suspect addresses on unsuspecting sites Aggressive tactics Over mailing Common issues

  42. Know who is marketing your brand Know their reputation Know their mailing practices Know their other clients Know how they are marketing your brand Monitoring is CRITICAL

  43. What Should I Monitor? • Partner Sending Reputation • Block Lists • Unsub Score • Compliance Issues • Key Words/Phrases Related to Brand • Suppression List Management

  44. Who are they sending to? How do they obtain their names? Their mailing practices Frequency List Hygiene Block Lists Who are their business Partners As an Advertiser you are Responsible!! Email Partners

  45. IP’s and Sending Domain Review Sending Behavior Opt in Practices Blocklists Suppression List Abuse Audit

  46. Review of All Campaigns Validate Unsub Process Validate that Partners are using only approved creative's, IP’s, Domains Validate that Partners are not sending to harvested email addresses or Suppression lists Verify that Partners are Marketing your offer in a manner that protects your brand!! Monitor On-Going Activity

  47. What is it? A Suppression List is a list of suppressed email addresses used by email senders to comply with the CAN SPAM ACT of 2004. CAN-SPAM requires that senders of commercial emails provide a functioning opt-out mechanism by which email recipients can unsubscribe their email address from future email messages. The unsubscribed email addresses are placed into a "suppression list" which is used to "suppress" future email messages to that email address. Suppression List Abuse