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So how can marketers motivate consumers to give them the information they need in order to target them correctly, asks MyPoints' Jim Hodgkins

Permission marketing is little understood and already open to abuse, as witnessed by the recent case of a supposedly opt-in list-provider caught selling opt-out lists. Even when consent has been granted by consumers, how often can they be contacted, especially by email? Best-practice permission marketing delivers the marketer's golden goal - being able to put relevant offers in front of consumers without them getting tired and unresponsive.

But in order to determine what best practice means, we have to insist on tight definitions and rules.

In theory, the consumer dictates the categories of product or service about which they are prepared to receive offers and advertising, usually dictating their frequency. This eliminates 'bait and switch' from the e-marketer's toolbox - the not-uncommon practice of enticing people to give away their details via a one-off incentive and then inundating them with email advertising.

Permission marketing is only useful to marketers if it reaches people who want and expect to receive it. Email is perceived as particularly intrusive by consumers. If they are enticed to give away their personal details, albeit in the knowledge that they're going to receive advertising, they need to be kept aware of the agreement, to continue to endorse that agreement and to have the opportunity to change their minds or preferences.

It does not include consumers who agree to receive email simply because that agreement entitles them to a one-off incentive. Apart from anything else, this doesn't produce good response rates. If consumers gave permission six months ago, will they remember this when they receive an email advertising another offer? Anyone with any experience of direct marketing knows the power of recent information.

Permission on its own does not necessarily produce enthusiasm either.

There has to be an element of motivation at every point of communication for the consumer to be receptive and responsive to advertising. Several proven, successful models exist, such as points schemes, online lotteries and e-vouchers. Cumulative reward programmes are less likely to generate false, pure incentive-based responses, as consumers can earn enough points to get a substantial reward, such as a holiday. But each reward is insufficient to generate a response, unless the consumer has a genuine interest in the product.

Today's consumers expect to be rewarded for their custom and, increasingly, for giving information about themselves. The UK experience seems to prove that regular rewards create more responsive, potential customers. More importantly, the reward element makes frequent interaction acceptable, and even welcome, to consumers.

Opt-in marketing that works has to combine strict, up-to-date permission with attractive incentives. But even that isn't the whole picture. People need to be presented with offers they want to respond to. More relevant offers will have a greater likelihood of response, which means higher reward-earning opportunities. But it also means that the consumer must feel comfortable letting the marketer know a lot about themselves in order for them to receive relevant offers.

Only through a combination of permission, rewards and a strict privacy policy can people be persuaded to part with sufficient personal data to make the process work. Many successful web-marketing firms now refuse to let their clients anywhere near their consumer data. All advertising has to go through the data owner - this is the only way of guaranteeing consumer privacy and permission preferences.

Online marketing response rates will undoubtedly benefit from the EU's opt-in decision. Cynics say the presence of spam offers a useful contrast for best-practice permission marketing firms. Overall, though, the less cluttered the consumer's mailbox, the more enthusiastically they will greet relevant marketing offers.

Permission is not enough to convince consumers to be enthusiastic participants: they need incentives. Nevertheless, true permission is a vital basis of online advertising if it is to be effective. The UK Government and Direct Marketing Association have stuck doggedly to an opt-out policy for all advertising media. In light of the EU decision, they may wish to review their position.