Cold Email in the UK. Is it Legal? Is it Worth it?

Cold email, also known as unsolicited email, has become a controversial topic in the world of marketing and sales. This type of email is sent to potential customers or clients who have not specifically requested to receive it. While some view cold email as an effective tool for reaching a large number of potential customers, others consider it to be an unethical invasion of privacy. In order to fully understand the case for and against cold email, it is important to examine its performance as a marketing tool, as well as the regulations surrounding it, such as the Privacy and Electronic Communications Regulation (PECR).

Performance of Cold Email as a Marketing Tool

Cold email has been widely used by marketers and sales professionals for many years. Despite its controversial reputation, studies have shown that cold email can be a highly effective way to reach potential customers. According to recent statistics, the average open rate for cold emails is around 15% to 30%, with conversion rates ranging from 4% to 7%. These numbers indicate that cold email has the potential to be a highly successful marketing tool if used correctly.

One of the main advantages of cold email is its cost-effectiveness. Compared to other marketing methods, cold email is relatively inexpensive and can reach a large number of potential customers in a short period of time. Additionally, cold email allows marketers to reach potential customers who may not have heard of their company or product before. However, the success of a cold email campaign is largely dependent on its execution.

Factors such as the quality of the subject line, the personalization of the message, and the relevance of the offer to the recipient can all play a significant role in determining the success of the campaign. A well-executed cold email campaign can result in a high return on investment, while a poorly executed campaign can result in a waste of time and resources.

One marketing personality, Neil Patel, has stated, “Cold email is a great way to reach out to potential customers if done correctly. If done incorrectly, it can be seen as spam and harm your brand’s reputation.” This highlights the importance of using discretion when sending cold emails, as a poorly executed campaign can result in negative consequences for the sender.

Implications of PECR on Cold Email

The Privacy and Electronic Communications Regulation (PECR) is a set of guidelines that regulate the sending of unsolicited emails. These guidelines are designed to protect the privacy of individuals and ensure that they are not subject to unwanted marketing messages. The main principles of PECR include providing an opt-out mechanism for recipients who do not wish to receive further emails and being transparent about the purpose of the email.

Marketers who do not comply with PECR risk facing significant fines and damaging their reputation. Additionally, non-compliance with PECR can result in negative consequences for the recipient, such as unwanted marketing messages and the violation of their privacy.

It is important for marketers to be aware of these regulations and to ensure that their cold email campaigns are in compliance with PECR. Many believe this involves obtaining prior consent from the recipient, but this is only applicable in B2C instances, B2B email communications do not require prior consent in most circumstances.

The need for prior consent only applies when a business is contacting an individual. It does not apply to when a business is contacting another business or an individual representing that business.

What's the difference?

It's the difference between sending an email to johndoe@gmail.com vs info@proliferatemarketing.co.uk or John.D@proliferatemarketing.co.uk. As such, contrary to popular belief, totally cold email with no prior consent is entirely legal under PECR, dependent on the recipient. For further clarity, I recommend this excellent video from Privacy Kitchen.

That said, marketers should avoid using misleading or false information in their cold emails, as this can also result in legal repercussions. Marketers should carefully consider their target audience, personalize their message, and provide relevant and valuable offers in order to increase the chances of success. Finally, marketers in the UK should be careful when sending cold emails to foreign businesses, as their countries laws will likely apply. Germany, for example, exercises a total ban on cold email. By following these best practices, cold email can be a valuable tool for growing your business and reaching new customers.

But is it Ethical

As we all know, legal does not mean ethical and vice versa. Of course, ethics is a broad field but ultimately, the act of sending a cold email would appear to have ethical value based upon the intention behind it. Is your cold email being sent with a genuine intent to aid and benefit the recipient, albeit in a mutually positive way?

In conclusion, cold email is not inherently unethical, and does not automatically violate PECR. However, like any marketing tool, it must be used with discretion in order to avoid negative consequences. Cold email can be a highly effective way to reach potential customers, but its success is largely dependent on its execution. Marketers must take into consideration the regulations surrounding unsolicited email and ensure that their cold email campaigns are in compliance with PECR in order to avoid negative consequences and maintain the trust of their potential customers. With a clear understanding of its potential consequences and a focus on best practices, cold email can be a highly effective way to reach potential customers and generate new business opportunities.