Why an E-Mail Newsletter is Critical to Your Business

It's been said that on the Internet, anyone can be a publisher. Certainly it's a message that most e-commerce companies have taken to heart, as they've resurrected that old workhorse, the company newsletter, and recast it as a formidable marketing tool for the Internet age.

Today, e-mail newsletters are much more than simply electronic equivalents of the supermarket circulars that tumble out of your Sunday newspaper. Sure, there are bargains to be had. But savvy Internet marketers know that it takes more to attract and keep subscribers than a constant stream of blue light specials.

Want to know when to plant daffodil bulbs in your area? Check out the latest issue of "Bloom Times" from Garden.com. Interested in the latest varietals from California's Central Coast? Sign up for Peter Granoff's monthly newsletter from wine.com. Today's online shopper wants advice, tips, hints and other information of value. Successful dot coms like these are smart enough to give it to them.

But what if your business isn't roses or rosé? An e-mail newsletter can still be a powerful tool even if you don't sell your product or service over the Web.

First, newsletters aren't just for customers. In fact, one of the primary benefits of a well-crafted newsletter strategy is it serves to capture information from people who may not be ready to buy today, but who may be potential customers in the future. It helps convert anonymous hits into measurable Web leads by providing a "low commitment" offer to people interested in your type of product or service.

Furthermore, a newsletter helps identify potential prospects who may not even perceive a need, but nonetheless face the challenges or issues that your product or service can help solve. For example: if your company markets sales automation software, an e-mail newsletter on "Selling More With Technology" will attract those sales executives who a) need help making quota and b) are pre-disposed to using every tool at their disposal.

One of the more obvious benefits of an e-mail newsletter is that it keeps your company "in front" of prospects on a regular basis, increasing the chance that they'll think of you when they're ready to buy. (Garden.com and Wine.com are perfect examples of this.) On a larger scale, say you're a consulting firm that specializes in ebusiness solutions. A newsletter that offers tips on how to optimize the selling power of your Web site can serve to maintain contact with those companies interested in keeping their site on the cutting edge, and who may eventually need a partner to take their operation to the next level.

What are the secrets to a successful newsletter? First, provide information of value. Not coincidentally, this is where most newsletters fail. A monthly highlight reel of your company's press releases, product updates, and trade show schedule won't attract many subscribers beyond your most loyal customers.

Naturally, original content - news, tips, strategies, etc. - takes work. If you don't have the resources in-house, think about sourcing third parties like trade publications, consultants and other business partners, freelance writers, or content providers like isyndicate (www.isyndicate.com).

Developing a thriving subscriber base means promoting your newsletter prominently on your Web site and elsewhere. A simple, text-based link exhorting visitors to "Sign up for our newsletter" will attract only the bare minimum of attention. Instead, consider a graphic or side-bar that speaks to the benefits of the newsletter - for example: "Get the latest ebusiness news in your inbox FREE."

Even that may not be enough. On the registration page, prepare for the possibility that people may want more information before they sign up. Include a link to a sample issue, or a "Tell Me More" page that sells the newsletter in strong, benefit-oriented language.

Newsletters are the perfect viral marketing tool. Be sure to incorporate "forward to a friend" functionality that enables the recipient to forward the newsletter to a friend or colleague. Note: Discourage readers from using the "forward" key on their e-mail software. Instead, provide a link to a "referral" page on your Web site that will enable readers to enter multiple e-mail addresses and with one click, generate e-mails preceded by a personal message and their address in the "From" field. This way, you'll be better able to track the volume of referral activity and subsequent conversion rates.

Newsletters built in HTML are more expensive, but they're worth the investment. Graphics, animation and other capabilities that HTML provides have been shown to increase response substantially over plain text. Not everyone can receive HTML documents, so ask subscribers to select HTML or plain text when they sign up. (it's also possible, with just one broadcast, to determine the e-mail capabilities of each recipient automatically.)

Using HTML unlocks an entire spectrum of capabilities that's simply not possible with e-mail text. For example, some technologies offer the capability to generate "dynamic content" - essentially, a custom newsletter that's tailored on the fly for each individual recipient based on that person's user profile, transaction history, even which sections of the newsletter they click on most frequently.

E-mail newsletters fulfill two of the key ingredients - Content and Community - often quoted as crucial to Web success. They increase site "stickiness", customer loyalty, transaction levels, and return traffic. Whether or not your company name ends in "dot com," an effective e-mail newsletter is something no high-tech marketer should be without.