TODAY NEWSLETTERS MAINTAIN THEIR SEAT AT THE MARKETING TABLE as the fragmentation of media continues to erode the effectiveness of mass advertising. Amid growing consumer distrust of advertising and cries for relevant messages, you can hear disappointment echoing through the executive suites of corporations footing the bill.

In fact, a recent study by Roper Public Affairs, shows that most consumers prefer receiving information from companies through editorial content rather than ads. A good 85 percent of those surveyed preferred custom publications to advertising, and 75 percent felt better informed after reading them. Thus, companies of all sizes, from all types of industries, utilize newsletters to retain their most important audience — their customers.

Whether you’ve used a newsletter in the past, are currently producing one or just considering one, you can recognize its benefits and the components necessary for optimum performance. Despite its simplicity, quite a bit of art and science goes into the development of an effective newsletter.

Strength in editorial
According to The DMA Statistical Fact Book 2005, 65 percent of marketers give high marks to newsletters and use them regularly. Customers perceive newsletters to be a value-added communication, not an intrusion. If they’re developed with a blend of educational material and solution-oriented product messages, the messages can be compelling and actually motivate readers to take action.

First Marketing’s own Newsletter Readership Study reveals that customers do read and respond to newsletters. Developed in 1991 to evaluate the effectiveness of custom newsletters, highlights from our multi-industry report include:

This research provides evidence that customer communication is both valued by customers and effective in accomplishing its goals, such as retention, image enhancement and cross-selling of products and services. Every newsletter program can be evaluated on an ongoing basis and monitored against an initial benchmark.

Relationship-building powerhouse
Newsletters support your other marketing efforts but they should be the core of your customer communication program. Here are a few reasons why, and how to produce the most effective piece:

NEWSLETTERS ALLOW FOR MULTIPLE MESSAGES. Take advantage of the flexible format to balance your product agenda with informational content that will engage the reader. Align newsletter issues with major product pushes and events, and develop a topic agenda for the full year.

NEWSLETTERS ARE INEXPENSIVE. For under $1 to $5 per customer per year, depending on quantity, a newsletter is an affordable surrogate for expensive in-person meetings or phone calls in building customer relationships. Have different messages for different audiences? Consider a version for each customer segment through several cost-effective printing options.

NEWSLETTERS OFFER COMPLETE CUSTOMIZATION. Through digital print technology, each newsletter that comes off the press can be unique, with a particular set of articles and images, messages, representative contact information and even customer statement information. Because of incremental cost, one-to-one customization is often reserved for the most high-value customers but savings can be realized by using a one-to-one newsletter in place of other inserts and sales material.

NEWSLETTERS HAVE FLEXIBLE FORMAT AND DELIVERY OPTIONS. Depending on the complexity of or the amount of information you must convey, print newsletters can vary in number of pages — 2, 4, 6, 8, 12 — and in page size. For ease in response, they can include a reply panel, inserted BRC or use unique phone numbers, codes and Web site urls. They can be self-mailed or inserted with a statement, which many times does not increase postage costs. NEWSLETTERS CAN SPEAK TO CUSTOMER LIFESTYLE TRAITS. Your publication’s content and design can be even more effective if you know who your customers really are — beyond the demographic makeup and into the types of products they buy, what they enjoy doing in their spare time, what they like to read and listen to. Using a lifestyle segmentation system like Claritas PRIZM NE, you can create a more robust customer profile and make your newsletter more targeted, even versioned or personalized if appropriate.