Does your company send out hard copy or email newsletters to your customers? If done correctly such can be cost-effective ways to retain clients, increase revenue per client and build equity in your customer evangelists.

The inherent benefit to legal and ethical email marketing (i.e. emailing only to subscribers who have opted in and can easily opt out) is the very low cost of publishing and distribution. While response rate numbers can vary based the quality and relevance of your lists and content, on average they’re only 1-2%.

As you’re no doubt painfully aware from a personal perspective, the problem with email marketing is its overuse and the fact that it shares a sometimes blurred line with the scourge of the 21st century−spam.

Pause for a moment and consider how effective email marketing is when directed to you. Keep in mind I’m not talking about unsolicited emails, but rather emails from those newsletters that at one point you made a conscious decision to subscribe. How many email subscriptions can an individual sign up for before they’re completely inundated with information? Chances are that many people have long ago passed that threshold. I receive many email updates from organizations in which I’m keenly interested, yet rarely do I have the time to devote my undivided attention to read through their contents.

Don’t get me wrong, I’m not disputing that email and hard copy newsletters are a proven means of marketing. But there is a better way . . . an easy way to turbo charge your emails so they’re much more effective. What I’m referring to is RSS (Really Simple Syndication), a universal data format that broadcasts the content of your newsletter to the world in a very similar fashion to how a radio or television station broadcasts.

With RSS someone can subscribe to your newsletter in the same manner they preset their favorite radio stations in a car or set their favorite TV stations on a remote. The appeal, and the reason for the rapid growth of RSS, is that the end user is in complete control and no unwanted feeds can force themselves onto the user.

For example, my default homepage is iGoogle which I’ve loaded up with subscriptions to RSS feeds from organizations and topics of interest. The three most recent headlines are displayed for each feed and they are updated automatically when a particular publisher posts a new article. Most of these RSS broadcasters send out email updates of the same info too, but by broadcasting in RSS they’re picking up a wider audience at no additional cost.

RSS provides another important benefit that email does not. Because RSS broadcasts to the world your message is no longer restricted to your closed email subscriber list. Keywords in your newsletter can now be picked up by all the major search engines and thus your newsletter can be found by anyone on the Web. So unlike email or hard copy newsletters RSS is a powerful tool for generating new awareness.

The benefits don’t stop there. When you broadcast a newsletter via RSS, typically a new Web page on your site is automatically created. If people find value in what you have to say they can create a backlink to your article. According to Google, backlinks (aka linkbacks) are the single most important factor for search engines in determining the value of your Website. Increased links back to your Website benefit your search engine profile and ultimately increase your Google PageRank and place your site higher on keyword search returns. From our experience, when utilized with quality content, RSS is the most powerful search engine optimization tool available.

The good news is that if you currently publish an email newsletter adding RSS broadcasting capability to it is not a difficult or expensive proposition. How it can be integrated into an email campaign will vary, but in many cases it can be no more effort than simply typing the newsletter at a single portal. For example, on the Web 2.0 sites we develop your newsletter can be entered online and published with a click. Immediately a new dedicated page is created for your newsletter, a nicely formatted email automatically sent to your subscribors, and the content of your newsletter is instantly broadcast and indexed by the major search engines.

Apple’s current ad campaign

For those of you who know me best, you’re already familiar with my incessant evangelism regarding Apple’s Macintosh. For those of you who don’t know me that well, just keep reading this blog. But for all my biased chest-beating, even the most anti-Apple critic has to acknowledge the recent strides the Mac has made in the marketplace. First off, Apple increased its earnings 88% last quarter, the company’s stock/equity portfolio is higher than it’s ever been, and well known icons within the PC industry are in the process of making “the switch.”

So how does Apple leverage their success? Simply buy understanding the consumer and building stylistic products suited to their needs. Steve Jobs and his engineers and marketers strive toward building and communicating value to those who believe there has to be more to computing than blue screens, random shut-downs, and indistinguishable error messages. Not to mention, Apple has developed a reputation for taking care of its customers, providing the industry’s highest standard in design, all the while building quality products that put the competition to shame.

The point I’m trying to make here is that Apple is successfully de-commoditizing itself within the computing market by establishing itself as a leader in consumer satisfaction. It’s one thing for a company to claim it’s good at pleasing customers, it’s another thing when the customers are saying it themselves. While Dell is struggling to right itself by opening low-price channels through Wal-Mart, Apple is creating the undercurrent for a consumer revolution that will only help to break the Microsoft hegemony within the market.

In conclusion, Apple has proven that organizations are able to operate with substantial margins within a commoditized industry. If your business is struggling to find it self within a competitive, dog-eat-dog market, remember to follow Apple’s example in focusing on your customer’s needs. After all, customers are the most selfish people on the planet; they only care about what your product, service, or brand means to them. Apple understands this principal, as do most profitable businesses.

Earlier this week, I was engaged in a discussion with a colleague on the way corporations tend to invest their capital. The amount of wasted dollars thrown toward executive pet projects, productivity initiatives, cubical redeployments, senseless non-strategic advertising, and other non-sales generating expenditures is simply mind-boggling. It truly makes me wonder how many companies have ever taken the time to consider what the results would be if they were to redirect a portion of their SG&A expenditure to improving customer relations.

Okay, you’re probably asking “what the heck does Erik mean by customer relations?” To be honest, I’ve never worked with or for a company that has ever concentrated their resources at the customer-level of the organization; every company I know concentrates most of their salaries, bonuses, amenities, perks, and other resources at the corporate executive level. Think about it, how many large organizations pay their frontline employees, namely those who interact and serve the customer, more than keyboard jockey managers back at the office?

I remember the first time I was introduced to this concept during my undergraduate studies over in Finland. My marketing professor asked us to read a phenomenal book by Jan Carlzon titled Moments of Truth. Through the book, Carlzon focuses on his stint as CEO of Scandinavian Airlines (SAS), where he is widely renowned for resurrecting what should have been a dead dog company. The SAS Carlzon took over was destined for insolvency, yet his progressive approach to turning the organization upside down literally saved the company and made it a world force in airline transportation. His strategy was simple: slash resources and expenses at the top and invest heavily in the bottom. Within a matter of months, SAS drastically reduced corporate headcount, frivolous spending (such as corporate-level perks), and useless overhead all the while investing in customer service training, customer-focused sales strategies (in regards to ticketing, seating arrangements, and travel packages), employee bonuses based on customer satisfaction, and salary increases for frontline personnel.

Along with the reallocation of resources, SAS initiated a policy wherein all corporate-level employees were required to work at the frontline level for a designated period of time so as to gain an intimate appreciation for the ticket counter representatives and stewards/stewardesses and the customers they served. Furthermore, SAS adapted a progressive policy of promoting high-performing frontline personnel to strategic positions within the organization so as to help consult other service-oriented personnel with customer-relations. Despite the temporary moral downswing at the corporate level, the frontline employee moral shot through the roof as opportunities opened up for incentive pay and promotions. Guess who reaped the benefits of motivated frontline personnel … yep, the customer.

So as to not give too much away, I do encourage you to read Carlzon’s book and contemplate his advice on marketing to your customers through your frontline employees. In addition to the frontline, bottom-up approach, Carlzon provides great strategic insight to managing a successful firm. Here’s a link to purchase Moments of Truth through Amazon:
Moments of Truth

To conclude, it would be well worth your time to consider how your organization could reallocate its resources to building a stronger relationship with your customers. It might be time to consider how to incentivize those who deal with your customers the most.