Simon Payn's Effective Customer Newsletters

How to Be Like Oprah

I got the shock of my life on the internet last night.

There on my favorite news website was a big, blue headline: "Oprah Talk Show Going Off Air."

Now, I know she had Sarah Palin on this week, but it can't have been that bad.

I thought Oprah was stronger than that.

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Turns out, of course, that Oprah is - in her own way - going rogue. Doing a bit of that mavericky stuff.

Because instead of doing a show for that mainstream icon CBS, it looks like she's going to have her own cable channel - the Oprah Winfrey Network.

Betcha they'll be a talk show on there.

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Oprah, as we know, is one smart businesswoman. She's got a brand as big as Jupiter and more power (and probably money) than anyone in the media.

So it pays to take note of what she does.

So what is she doing? She's taking control of her own distribution. Instead of being a slot on CBS, she's going to own an entire channel. 24 hours a day of Oprah doing what she pleases.

SO WHAT LINKS OPRAH - AND YOU? Simply, that you can create your own distribution - your own network.

Now, I wish I could say this was all my idea. But Seth Godin blogged about it first.

Seth was talking about real estate agents - but it applies to any industry. Real estate agents, he said, should create their own publication (their own newsletter) rather than being forced to advertise in newspapers.

Imagine if a local business put out its own weekly publication. It needn't be fancy, but it does have to be interesting and relevant. Pack this publication with local news, what's on events, profiles of local celebrities, details of the H1N1 clinics, sports reports, pictures of newlywed local couples, reports on what the municipality is doing.

Sounds a lot of work - and it is. But imagine if that business joined with other (non-competing) businesses to share the costs.

Your publication would be the talk of the town. Indeed, an essential resource.

And which company would have unlimited space for advertising? The owner of that distribution channel, of course.

OK, I know this sounds crazy. But it's worth at least listening to what Oprah does.

Going rogue does make some kind of sense.

[Picture credit]

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Why Real Estate Agents (and Others) Need to Be Publishers not Advertisers

Once again, Seth Godin is speaking my language.

In a post today he draws our attention to the difference between renting eyeballs (the old media way, where you buy an ad that is shown to the readers of, for example, a magazine) and actually owning the platform - owning the magazine or other media.

He gives an example of the local real estate agent:

She can spend to run ads every week in the local paper, or she can use the same money to start a legitimate media channel, a digital magazine, say, one that cheers on the school and gives the local paper a run for its money. And oh yes, the only houses listed for sale are hers. It might take a lot of work and even some money. But what does she get? A platform forever.

This is what I've been urging my real estate (and other) clients to do. Make their newsletter into their own magazine...be a community hub (like this hypothetical bar or this funeral home). 

It's the route to owning the market.

Seth wraps up with this:

Compared to the cost of renting eyeballs, buying a platform is cheap. Filling it with people eager to hear from you... that's the expensive part. But if you don't invest in the platform, you'll be at a disadvantage, now and forever. The smart way to build a brand today is to invest in the elements of the platform... the product, the technology, the websites (plural) and the systems you need to make it easy for people to show up at your very own trade show. And then embrace these people and shoot for 90% conversion, not .5%.

Like most good investments, it's expensive and worth more than it costs.

Be a publisher, not an advertiser.

(P.S. When I last wrote on this theme, someone emailed me to say that yes, it's a good idea, but not practical. No real estate agent (or other) is going to do this. That's almost true. But I said in reply that the one that does do this - that does invest the time, energy and money - will clean up.)

Real Estate Agents: How to Make 4x as Much Commission

Here's another of my little charts. This one applies to real estate agents and mortgage brokers in particular - but the general idea applies to any business.

It makes a compelling economic case for keeping in touch with clients over the long term.

 

The chart shows the difference in commission earned by a real estate agent (or mortgage broker) who keeps clients for life compared to one who just does a single transaction with a client.

The difference results in four times as much earned in commissions.

How is it worked out?

Consider that a real estate career lasts 30 years.

The average time a family spends in one house is said to be 7 years.

So, over that 30 years, the family will move 4 times (4x7=28).

Instead of earning one commission over your career from one client, you earn four commissions.

Let's put some numbers on those bones.

If the median home price in the US is $180,000 and commission is 5%, the commission earned would be $9,000. 

So four times that sum is $36,000 - a difference of $27,000.

Of course, this doesn't account for commissions shared, and portions paid to the broker and your costs...but the result is the same. You earn a lot more money by keeping a client for your career.

Of course, keeping in touch with clients through newsletters is the best way to be top of mind so that they call you when they're ready to move.

So how much will it cost to keep in touch with them?

If you do it by email, the cost is practically zero, as emails cost nothing to send.

If you do it by mail, and you send newsletters every month, you are looking at an approximate lifetime spend of $576 per client. (That's made up of $1 per month to print the newsletter for 360 issues, plus 60 cents per month for postage.)

Of course, that doesn't include membership to a newsletter program, running at around $49 per month - but that program can be used for multiple clients. And - of course - results will vary, postage and printing costs will go up, and not everyone will get every client to come back every time.

But still...the economics are pretty compelling:

Commissions earned over lifetime per client: $36,000

Cost to keep in touch with client over lifetime: $576

Total commissions minus cost: $35,424

versus..

Commission earned with one transaction: $9,000

Cost to keep in touch with client over lifetime: $0

Total commission minus cost: $9,000

Difference: $26,424

Now, multiply that by the number of clients you might have, and the math is truly astonishing.

As I say, not everyone will get the same results - you could not do as well. Or, with rising house prices, you could do better.

But when you look at it, the investment in keeping in touch is so low and the benefits are so high that it's something you must consider.

Find out more about newsletters for real estate agents and mortgage brokers.

How to Use a Newsletter to Prove that a 'Commodity' Product Can Be Special

Here's a fascinating case study from a company that sends out a newsletter in every box of eggs it produces.

Yes, eggs that come with their own newsletter.

I'll give you what I see as the big takeaway first:

You might think that eggs is eggs. But, as we're told, some eggs are better than others - free range is better than battery, organic better than chemical. But with so many claims (many misleading) about eggs (what does "farm fresh" mean?), how do you make your eggs stand out? One way is by sending out a newsletter with each box of eggs to a) tell the story of the eggs and their producer, and b) build an unshakable bond with your customers.

The Country Hen claims to produce the best eggs in the United States. Here's what Kathy Moran from the sales department told me. (I'm telling the entire story, because it's important.)

Our owner, George Bass, started The Country Hen in 1988.  It was the first Organic, Omega-3 egg farm in The United States.  The only product we produce is an Organic, Omega-3 Egg.  However, I probably should mention, it is the best egg on the market.  I guess if it the only thing you are going to produce, it better be!

 

George had a unique philosophy, in 1988, with regards to creating The Country Hen.  He believed only the happiest, healthiest hens would produce "The World's Best Egg".  George exceeded all standards for egg farming and organic certification laws.  He was actually responsible for organic certification with regards to egg farming to become much stricter in the industry.  The Country Hens enjoy roaming freely through spacious, sunlit barns with outdoor porches attached.  The outdoor porches allow for outdoor access, but maintain our ability to completely control the safety of our hens from predators and any risk of disease.

 

The next thing George did differently was work with top scientists to develop The Country Hen's proprietary feed formula.  The over 10 organic ingredients in the feed formula is a very closely guarded secret.  It is what gives the eggs their exceptional nutritional value, great taste, and also acts as a probiotic for our Hens.  George, of course, insisted on milling the feed right here at The Country Hen farm.  Although it is a very expensive undertaking for a single farm, it gave George the ability to control every aspect of the quality of the raw ingredients and milling process.  Only recently, with all the human and animal grade food scares, do we truly appreciate the value of having our own feed mill.

 

Lastly, George took great care with The Country Hen packaging.  He only produces a half dozen size carton.  This is the way it was twenty years ago and it remains this way today.  Also, case sizes are only 15 dozen eggs.  This was so he could be sure his eggs remained fresh at store level and even in customer's refrigerators.

Finally, since the first egg carton, George also wanted his customers to feel a strong connection to The Country Hen Farm.  For this reason, he produced newsletters for every 6-pack of eggs.  The newsletters are printed every 4-6 weeks and have included many topics including:  nutritional information regarding the eggs, funny farm stories, backgrounds of Country Hen employees, hot button farm topics in the news (ie. recently ethanol), farm poetry, customer letters, etc...  [Here are some links to the Country Hen's newsletter content.]

Now, if you had a story like that, wouldn't you want to tell the world? Wouldn't that make your product different from every other product?  Wouldn't it make customers warm towards you and develop a bond with your product?

Kathy told me that customers complain if their eggs arrive without the newsletter:

We receive many customer emails, from loyal customers and new customers.  A high percentage of those are regarding our newsletters.  Customers love them.  The insert machine that puts the newsletters into the cartons was specially designed for The Country Hen.  Occasionally, it will act up, as all machines do.  We know instantly, if eggs got to the market without newsletters.  When The Country Hen started in 1988, it supplied only to stores in Massachusetts.  Now we supply stores from Maine to Florida and as far west as California.  The newsletters have become increasingly important as we have increased our geographic customer base.  This is because although we go from Massachusetts to all of these states, The Country Hen, still feels like the local egg farm to all of our customers.  This is because the newsletters keep them up to date with all the information on and about the farm.  Priceless!!

I haven't heard from the company whether they are able to quantify the value of the newsletter in terms of extra sales. But you can bet it contributes thousands of dollars to the bottom line.

[Kathy emailed me later with this information: We often do a cost/benefit analysis of our marketing programs to evaluate whether they should be continued.  Even though the newsletters are fairly substantial in cost, in twenty years, the discontinuation of the newsletters was never a consideration because of its obvious success and appeal with our customers....  When starting at The Country Hen, I would say that the success of this program was obvious in less than three weeks time.  That is how many emails, letters, and calls we receive regarding the newsletter.]

When I say that every company needs a newsletter (including funeral homes), this is what I mean. In a world of battery hens and commodity-crappy products, a great, personal story - well told - is going to win out. Don't you think?

Another Great Example of a Customized Real Estate Newsletter

It makes me smile from ear to ear when one of my clients takes the real estate newsletter I offer and really  makes it theirs.

Here's another example (click here for a previous one), this one from Marianne Derjean, who is with broker McGuigan Pepin, in Quebec,  Canada.

Here's what I love about it.

1. A "Message from the Presidents". Not just any message, but a report from a recent trip to a real estate conference in Paris, France. Not only is this an interesting article full of useful facts, but the "meta" message here is that these brokers are plugged into the international luxury real estate market. You'd want to hire people like that, wouldn't you? (The article mixes news about real estate, fractional ownership and the economy with a paragraph about how they spent their leisure time in Paris. A great way to make the tale more personal, strengthening their relationship with their clients by sharing what they did in their free time.)
2. A story about the company's trademark yellow golf flag, which is part of its logo and which flies outside its open houses. A neat little story that gives some insight into the company, while mentioning that one of the owners was a champion golfer. (I bet lots of their clients golf - great way to make a connection!) The golf flag is, of course, a great way to brand the brokerage- stands out from the regular lawn signs. (Plus: they also encourage reader feedback with a little competition to create a catchy phrase about the brokerage and the flag.)
3. An informative column on the current market focusing on pricing. Plus, another on why now is a good time to do renovations. Both are great up-to-date topics.
4. An article by a mortgage banker. This is a great way to get extra content for your newsletter - partner with a relevant, non-competing provider.
5. On their winter newsletter, not only do they wish people happy holidays, but there's a notice on the front page about the agency's Open Door Day. The position of the notice, on the bottom right corner of the page, is great for catching people's attention - and the freebie shopping bags they give away are a valuable (and timely) incentive.
6. Recognition to winners of a recent contest they held.

So, in summary, what this broker has done is take a ready-made newsletter and then personalize it with their own content to create a much stronger bond with their clients and a fraction of the price of doing the entire newsletter themselves.

That's why I'm smiling!

Want your own newsletter? Find out more about my residential and commercial real estate newsletters.

(Plus, I also have newsletters for the following businesses: mortgage, insurance, accountancy, financial planners.)

An Example of How Targeted Content in Newsletters Pays Off

I've said before and - watch out - I shall say many times in future that the number one rule for newsletters is: write for your reader. That's because if you make the content relevant to your readers' interests, they are more likely read your newsletter, engage with you and - frankly - buy stuff.

So it's nice to see some concrete evidence that changing a newsletter so that it directly matches the interests of the reader brings about a bump in results.

Marketing Sherpa produced an interesting report today about how Sprint used dynamic content to deliver content targeted at readers' preferences. Now, most small business aren't going to be investing in dynamic content (it requires an IT investment) but they can a) make sure their newsletter is targeted at their readers' needs, and b) produce several, highly targeted newsletters according to segments of their client lists.

Here are the takeaways from the Sprint results:

• Sprint had already started a move in its newsletters away from promotional material towards using them as a customer loyalty tool. (Smart move - people in general don't want to receive a bunch of ads.)
• They focused on new content and features to make the newsletter a benefit for existing customers.(Note the word "benefit" - you want to make your customers' lives better.)
• They wanted to offer the most relevant information - personalized content targeting each subscriber’s needs and interests.
• The team began using dynamic content features that would deliver a customized, highly targeted version of the newsletter to each customer, based on their wireless device, service plan and interest areas. They also adopted a rigorous testing strategy to optimize layout, content selection and subject lines.

Here are some of the results:

• Clickthrough rates are typically twice as high as those achieved through Sprint’s promotional email blasts.
• Dynamic content is a large contributor to the monthly results. For example, the personalized image of a subscriber’s phone (that links to that phone’s supplier)
• Although the newsletter is positioned as a customer-loyalty tool, it is outperforming the company’s promotional email campaigns:  The newsletter produces more than double the number of phone purchases and plan upgrades as that of promotional email campaigns.

You can read the entire report here.

An Example of a Newsletter with Personality

If you don't know about HARO (Help a Reporter Out) and you are interested in getting media coverage, then check it out. Basically, it's a service that connects journalists (who are looking for sources for stories) and PR people/companies with products seeking publicity. It goes out as three emails per day. Very simple. Very effective. And free.

But I'm not here to write about HARO per se, more about the element of personality that HARO's creator, Peter Shankman, has put into the product.

I believe that this personality accounts for much of HARO's success.

Here's the thing: it's very easy to be "corporate", to make your project or service very polished, very professional...and very bland. Almost all products are like that - which makes it hard to tell one from the other and even harder to feel any kind of bond between you as consumer and the product itself.

What Peter does with HARO is remove the corporate veneer. Instead, he adds his own personality.

By:

• Sharing what he is doing every day. (And he does interesting stuff - this isn't "got the car fixed" type of content.)
• Writing in a friendly, recognizable style. It helps that he's a good writer, of course. But the key thing here is that he writes like he speaks. Informal. Friendly.
• He creates interaction with readers, through giveaways and message such as "I'm in Boston today - anyone got time for a coffee at noon?"
• He's built and maintained a strong ethos for the product. For example, people who abuse the product can get kicked off the list. And perpetual abusers are named and shamed.

• The email "from line" is Peter's name - not a corporate name.

This is the kind of personality you should infuse into your newsletter. Instead of being corporate, be you.

You might offend a few people (people you'd probably offend in person) but you'll attract many more.

(For more on adding personality to your newsletter, read this post.)

Excellent Example of a Customized Real Estate Newsletter

I love it when people make an effort with their marketing. (Because - to be honest - so few people really do all that it takes to break through in their market, particularly in the current economy.)

I love it even more when my members take the product I offer one stage further and make it their own. Doing so makes their newsletters even more powerful.

Here's what Vancouver real estate agent Conrad Litz does with the real estate newsletter I offer. (I help him with the final design touches each month.)

1) He uses most of the original newsletter. After all, it's ready to use without customization, if necessary.

2) He makes changes to match his red and black branding, and adds his own custom masthead at the top of the newsletter. All this ties his marketing together, adding strength to his brand in his local area.

3) He replaces the first article on the front page with local market commentary and advice. Here Conrad does a great job, positioning himself as an expert on the local real estate market. 

 He told me:

I spend 1/2 a day thinking about what is important to my current and future customers.  I then try to write in such a way that I continue a conversation in their mind that they are probably having.  I can crank out an article in about 60 minutes usually late at night with no distractions.  I then let it sit over night like a good pot of stew and touch it up the next day or so.  My challenge is I get a little too technical, so as you have advised I always need to get down to that common element that owners or buyers are thinking about.  Also know how your market is interlinked to the whole market in general.

4) He adds listings to the back page with a link to a website that goes directly to a listings search.

5) He includes a testimonial from a satisfied client. Testimonials are powerful because they provide independent proof.

Does this extra effort work for him? He says:

The biggest results I get is when I prospect, they know who I am.  There are no ifs, ands or buts about it.  So even if I don't get their business, there is immediate acknowledgment and respect right from the get go. This makes prospecting much easier.   I don't think I could ever cold call again.   Yes I do definitely get business from my newsletter and it is growing.

Here are Conrad's 5 tips for real estate agents who use newsletters:

1.  Get someone you can trust to do most of it.  I have other options but I choose ReadyToGoNewsletters because they are plugged into the market that I am going after.

 

2.  Add some of your own creative content to personalize your newsletter.  Absolutely critical!!

 

3.  Look for excellent quality printers at very reasonable prices.  If your newsletter is too expensive you will not stick with it.

 

4.  Keep trying different approaches as far as content is concerned to get both a good direct response as well as a delayed response.

 

5.  As part of the bigger picture, only use a proven model marketing system.  Be very careful with creativity.  Remember the pioneers are the ones with the arrows in their backs.  Find a proven approach and then master it.

Conrad makes one final, but very important point: people call him sometimes several months after they've seen the newsletter. So don't evaluate your newsletter on immediate ROI - it's a long-term project.

An Excellent Email Newsletter to Model

I've been on the mailing list of Printing for Less for some time and have always been impressed by their monthly email newsletters. January's is perhaps one of the best, so I thought it would be interesting to talk about why it's so good. You can see a copy of it here.

1. The newsletter starts with a topical comment that "enters the conversation going on in the customer's head." Yes, it's about the economy - and it gives a quick tip on how a business can survive during the recession. This makes the newsletter immediately relevant and useful.

2. The company has been running an "Economic Stimulus Contest" (top marks for being topical - riding on the back of one of the biggest themes in the news.). The January issue clicks through to the results, highlighting companies that have invested in printed marketing to bring more business during tough times. Of course, each company has used Printing for Less to produce its marketing material - a subtle promotion for the company's services.

3. A neat table of contents, making it easy for readers to find an article they might enjoy.

4. Product of the Month offer. Printing for Less has slipped some promotion in here - that's fine. But it's not just promoting the existence of the product, it's making an offer too - free business cards with the order.

5. Feature article - Internet Marketing Tips for 2009. Good choice of topic for a January newsletter - one sure to interest a lot of readers. The link clicks through to a third-party site, which is fine - Printing for Less has shown it is a provider of useful, interesting information that is targeted to the needs of its readers.

6. Another feature article - on Photoshop. Links to Printing for Less's sister site, CreativePro.com, which is a content-rich site which helps designers do their jobs better. This site not only provides lots of inbound links (because of its rich content) but it strengthens the relationship between the company and one of its main sources of business - designers.

7. Surveys. The results of last month's poll - a great engagement device which turns passive readers into active participants, further strengthening their ties with the company.

8. Another engagement device, which asks readers to vote and comment on an economic proposal by the company's CEO. The link goes to a page on Forbes.com - a great way to link Printing for Less with one of the biggest brands in business.

9. Some company news. This is sensibly hidden fairly low down the newsletter - Printing for Less recognizes that most readers aren't really interested in developments at the company unless they directly affect them. The news they've chosen to share is about a green initiative, which gets the company points anyway.

10. A customer testimonial. Comments from clients are a powerful marketing technique, providing proof that the company provides a good service.

11. The newsletter has all the usual widgets you would expect, including an unsubscribe link, a forward to a friend feature and a view online feature.

This is probably one of the best newsletters that has entered my inbox (or mailbox). It's worth emulating.

Real Estate Agents (and Others): The Newspaper Newsletter

I hate it when people have an idea similar to mine and then blog about it first, so that I don't get the chance to claim it.

Anyway, that person is Seth Godin, so I'm not mad.

Real Estate agents (and anyone else with a local business) should read his post, Time to start a newspaper.

Of course, this is what your newsletter can become. Indeed, I have several members who have gone some of the way towards implementing what Seth is suggesting, with what's on guides and ads from other local businesses.

By making your newsletter into a real community resources in (let's face it) a time when many local newspapers are withering and leaving a gap in the market, you will become *the* trusted local expert, the go-to person - and you will own a strong relationship with a section of your community.