Rules & Regulations

Data: Using Customer Data

This information is part of the Data topic.
In this topic:

• The Data Protection Act (DPA)
• What it means for your business
• Using customer data
• Direct marketing using email, mail and phone
• Using information in the public domain
• A checklist for businesses

In order to use customer information legally you have to apply the eight principles quite precisely when capturing personal details in the first place. You also have to take into account the regulations that came into force with the EC Electronic Communications Directive that was introduced in 2004.

Using customer information

Customer data that you have gathered in the course of your day-to-day business can be legitimately used by you to continue to promote your core business activities. This means that you can, within the law, continue to contact individuals whose names and addresses, telephone or email details you have collected in the past, provided the information you are sending or offering them is related to your core business. For example: you can send a mailing card promoting your business, send them a brochure, a list of special events, some accommodation or attraction information or some special offers etc and you can continue to contact them unless they request that you stop using their information in this way.

However, you cannot share, sell or pass on personal data or conduct joint marketing with another business or organisation, unless you specifically have the permission of the individuals to allow their data to be used by someone else. This means that if you want to share data for joint marketing you must ask the customer's permission. You would be breaking the law if you passed on or shared consumer data without the individuals positively opting-in.

Furthermore revisions to the DPA state that whenever you contact your customers to send them or provide them with additional information you must allow them to opt-out, free of charge, of receiving information in the future. For example, if you send a mailing card, there should be a note at the bottom that says something along the lines of "If you do not wish to receive information from us in the future please write to us at...."

Ask the Data Protection question

Because of this, the DPA is generally interpreted as requiring you to ask, wherever possible, for an individual's consent to using their data, even for your own marketing. This means that if you would like to use your customer data for future marketing you should ask a question along the lines of "Do you wish to receive information from us in the future?" or "From time to time can we send you information about special events or promotions?".

If you think you may want to work with another business or organisation on a joint marketing exercise at some point in the future, then the question you ask should be along the lines of, "Do you wish to receive information from us or similar organisations in the future?" The exact wording is up to you, but your obligation under the DPA is to ensure that your customer is clear about what their information may be used for.

Staff must be well informed

Ensure that your staff ask this question every time they take customer data. It is highly recommended that your staff understand how a customer's details may be used in the future - many customers ask. They should be able to respond appropriately when asked, "What does that mean - receive information in the future? What information?" Staff can be trained to say, "Well we may send you our new brochure when it comes out, or let you know of any special events or promotions." If you are likely to contribute some of your customer data to a joint marketing exercise with another business then staff should add something along the lines of, "Or we may send you similar information about other businesses that we think you might be interested in."

Record the answer properly

Since customers may make a variety of responses to that eg "Yes, mailings are fine" or "Yes, but only mailings from you, not from anywhere else" OR "No, no mailings at all" it must be possible for staff to record the customer's answer accurately. You must also take that answer properly into consideration when building contact lists for future marketing exercises. Don't include anyone who has said no to the kind of marketing you are planning, it is against the law.

Sometimes it is not possible to ask a customer - they may have sent you an email, or a letter, or left a phone message. In this case, provided they don't specifically ask you not to, you are able to use their details for your own future marketing, but not for any joint marketing.

Next in this topic:

• Direct marketing using email, mail and phone