Why Customer Newsletters Bring in the Bucks

ZZzzzzz. That’s the reaction I often get when I recommend customer newsletters to business owners, but only from those who don’t use them. The ones who do, know promoting to their customer base brings in the income. Here’s why:

1. Higher Open Rate

An e-newsletter’s “open rate” is the percentage of recipients who actually open the e-letter. For me personally, I can’t guess the number of newsletters I’ve subscribed to and then promptly forgotten about. Later on, when that newsletter shows up in my inbox, I don’t recognize the company name and I delete it. I know, it’s not that company’s fault but when my inbox is overflowing, I am not very discerning.

When you send out a customer newsletter, the recipients will recognize your company name in the sender’s address which greatly increases the likelihood they will open it. If you are better known by a product or service name, then incorporate that name into the email address from which the newsletter will be sent.

2. Higher Response Rate

You know your customers, what they like, what interests them and what problems they are trying to solve. This knowledge enables you to craft content, including ads, that resonate as compared to a generic newsletter for an overall subscriber list. The more your content hits home, the better your response.

3. Higher Conversion Rate

Every so often, I receive a special offer from a company which already has me as a customer. I read the offer, get interested—even excited—until I read the fine print: “For new customers only.” My immediate thought is: “What about me, your loyal customer who paid full price?”

A customer newsletter is a perfect vehicle for customer-only special offers and rewards for referrals (if you are in an industry where this is appropriate and legal). It does validate your customer base and can help push them over the edge on their next purchase.

All of the “stats” above can be tracked when you create your newsletter and send it out using online contact management systems.

What to Include?

There are tons of online articles and blog posts on what type of content to include in an e-newsletter. I’d suggest skipping the recipes, puzzles and other non-essential items which, though entertaining, distract readers from your message.

Try a Customer Newsletter and Monitor the Results

To cite the old cliché, “the proof is in the pudding.” Will customer newsletters help you sell more products and services to your customers? Try one and track the results.

Author: Andrea Kluge

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