Loyalty Register glossary
Opt-out
A member's request to stop receiving a type of message or data use, or a consent model that assumes permission until the member says no.
To opt out means to choose not to take part in something you would otherwise be included in, or to withdraw from it. In marketing, the opt out meaning is narrower: a person tells a business to stop sending a type of message or using their data in a certain way, for example by clicking “unsubscribe” or replying STOP to a text. Opt-out is also the name of a consent model in which a business may contact people until they say no. In loyalty programs, an opt-out usually stops marketing only: the member keeps their account, points and status.
Updated · By Loyalty Register Editorial TeamRelated terms
What is the difference between opt-in and opt-out?
Opt-in means nothing happens until the person says yes, such as ticking an unticked box to receive texts. Opt-out means it happens by default until the person says no. Neither is better in general; the law often decides. In the US, marketing email to members can be sent on an opt-out basis, while automated telemarketing calls to cell phones need prior express written consent under FCC rules. European rules on marketing consent are generally stricter, so a program running in several countries often uses opt-in everywhere for simplicity.
What are the rules for opt-outs in the US?
For email, the CAN-SPAM Act requires a clear way to opt out of marketing messages. As the FTC explains it, opt-out requests must be honored within 10 business days, the mechanism must keep working for at least 30 days after a message is sent, and people cannot be charged or asked for more than an email address to opt out. Being a member of a program does not remove that right.
For text messages, FCC rules let consumers revoke consent by any reasonable method. Replies such as “stop,” “quit,” “end,” “revoke,” “opt out,” “cancel” or “unsubscribe” always count, and revocations must be honored within a reasonable time of no more than ten business days.
Privacy laws add data opt-outs. The California Consumer Privacy Act gives consumers the right to opt out of the sale or sharing of their personal information. In the EU, people can object at any time to the use of their data for direct marketing, and the processing must then stop.
How should a program process opt-outs?
Treat every opt-out as a change to one central consent record, then push it to every system that can send messages: the email platform, SMS provider, app, call center, agencies and partners. Most failures happen in the gaps, when one tool updates and another does not. Make the opt-out specific where possible. A member who stops promotional emails may still want their monthly points statement, and a preference center lets them choose instead of leaving everything. Service messages, such as receipts, security alerts and notices about changes to program terms, generally continue after a marketing opt-out, where the law allows.
What do opt-out rates tell you?
A rising opt-out rate after a cadence increase, a new campaign type or a partner mailing shows members found the messages unwelcome. Read opt-outs by campaign, segment and channel, and look at what members received in the weeks before they left. A program that lowers opt-outs by making messages more relevant keeps its reach; one that lowers them by hiding the unsubscribe link only delays the loss and risks breaking the law.